In Maharashtra, it is mandatory for every mortgage loan borrower to submit the details of title deed in the office of sub-registrar within a period of 30-days. This decision is taken by the Inspector General of Registration (IGR) and Stamps to reduce the fraudulent practices that include availing of loans against the same property from multiple banks and selling it to a third party without informing the respective bank.
The Inspector General of Registration also issued a notification in regard with the same and said that this decision implies with immediate effect and also directed property owners in 29 cities, including Pune to follow the same guideline. According to the rule in all these cities, a stamp duty of 0.2% will be applicable on title deed submission. The remaining cities of the state will also fall under the same rule.
The Registration Act 1908 is amended and makes it compulsory for the mortgage loan borrower to register the agreement between a creditor and a debtor.
An official at the registration department said that according to the rule, any independent registering a normal sale deed with the Inspector General of Registration will have to submit the mortgage title deeds. This submission will reflect in E-search under all transactions against the property.
Dr. Ramesha, the director of Indian Institute of Bank Management said that the notification puts the mandate on the home-buyer to ensure that he/she intimates the registration office about the loan taken on the property.”