Inception
Property titling is one of the key reforms mandated under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for city governments.

Conceived about fours years ago, the new Bill is based on a United States Agency for International Development (USAID) project carried out on behalf of the state government. The USAID report, prepared by a team of experts headed by urban development expert Michael Lee, had stated that due to the absence of a title registration system, title (ownership), possessor rights (such as lease) and other property rights are not readily verifiable.

The USAID report said buyers and mortgagers always face a risk if there is difficulty in proving the ownership of a property. There is also a risk to banks and housing finance companies — they may be unable to foreclose a mortgage. Moreover, many households are unable to prove legitimate ownership and are often not able to access mortgage financing. This in turn deprives banks and finance companies of a significant part of the potential market.

The system is based on the Torrens Title System, followed in the UK, Canada and many East European countries and is named after Sir Robert R Torrens, who introduced it in South Australia in 1858 and later lobbied for its adoption in other parts of the country.

What does it do?
* A land title guaranteed by the state provides a conclusive proof of title to property ownership and provides and certifies the land boundaries based on actual ground surveys
* These titles are then recorded on an ‘electronic register’, which is accessible online to the public
* A registration authority will be set up, functioning under deputy commissioners of each district after amending the Indian Registration Act, 1908, the Transfer of Property Act, 1882, and the Indian Contract Act, 1872.
* The system places the responsibility of maintaining land records and guaranteeing titles on the state, ensuring credibility, which is absent in a privately owned system.

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