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Owing a home is every Indiaâs dream â a dream that transcends all geographic, demographic and cultural barriers. For many, it is their lifeâs largest and most significant investment. In most cases involving end users, the registration of a property happens naturally as it is an integral part of the purchase process. Because of this, the incidence of such purchasers failing to register their homes is extremely small.
The incidence of failure to register properties is much higher among professional real estate investors, who often buy properties in bulk directly from the developer. Many such investors are unwilling to pay for the registration of such properties. The reasoning is that they will in any case be resold, and that the purchaser will undergo the registration process at that time.
No matter how prevalent this practice is, there is a high legal risk involved. Without registration of a purchased property, the legal rights over it continue to be vested fully with the developer. Needless to say, this is a game with extremely high stakes involved â and therefore a gamble at best.
The Indian real estate market is still at a basic stage of evolution, and the temptation to bypass the law on property transactions continues to be a factor. Thankfully, property laws as well as their enactment are now catching up with the realities of the present day.
