Abstract
The Indian society has been used to following the presumptuous land ownership system due to its feasible nature. They have claimed ownership over a property and have considered the land as their own due to the presence of a registered sales deed. But these ownerships have caused constant disputes, which have led to a huge number of cases being filed in the courts. This has negatively affected the GDP and has also caused distress to the people. There is a necessity to bring in a system which keeps the record of all land titles to prevent title disputes. This has led to the introduction of the guaranteed title system.
Introduction
The title to a property shows a person’s rights and ownership over a property. The title to a property is a bundle of rights, and it is intangible. The property can, however, be tangible or intangible. Title over a property entitles a person to use, destroy and transfer it.
Land disputes in India are huge in number. The origin of the land disputes can be linked to the multiple land laws across India post-independence and the lack of effective administrative action. The cultural and economic presumption of people also affected the title to the property. The LRI study of the Supreme Court cases on land acquisition between 1950-2016 shows that 95% of the disputes arose due to administrative non-compliance with the established legal framework.
Land transfers in the past were mostly oral and lacked proper documentation and notification. One person in a family would have sold the property to another and would not have notified their family of the same. The family of the original owner would stay in the belief that they still own the land, but they do not. This would create a dispute over the property as the original owner’s family would state their ownership, and the buyer would lack documentation to prove ownership, and ultimately, that would lead them to litigation. There was a prevalence of presumptuous ownership among the larger population due to a lack of documentation and record-keeping.
Keywords: Property Rights, Title, Ownership, Guaranteed title certificate.
Concept of Presumptive and Conclusive Ownership
Conclusive land titling is a titling method in which the State, i.e., the government, will provide a guarantee on land titles. These land titles designate actual ownership. The government will also provide compensation in case of any disputes in regards to the title of a land between two parties. If there is a dispute, the claimant can settle it with the government. Even if the claimant proves the property to be his, he is only compensated by the government, and the property remains with the title holder. There is a guaranteed title to the property.
In a presumptuous land titling system, ownership is granted based on the record of the property transaction between seller and buyer, i.e., the registered sales deed. The buyer is not entitled to the previous ownership record relating to the property. Therefore, it’s called a presumptive one. If the claimant proves that the property belongs to him, then the property goes to him, and the previous owner loses ownership. There is no guarantee on the property.
The Torrens system of land registration, i.e., mirror, curtain and insurance, plays a role in conclusive ownership. The title register should accurately reflect all interests in the land (Mirror principle), the register shall be the sole source of ownership information (curtain principle), the government will provide a fund for compensation if errors lead to loss (insurance principle).
Legal and Administrative Background
The Transfer of Property Act 1882, the Registration Act 1908, the Hindu Succession Act 1956, the Indian Succession Act 1925, the Real Estate (Regulation and Development) Act 2016 (RERA), and various state land legislations and codes govern matters related to land in India.
There are multiple legislations to govern land-related matters. The Indian society has been facing a lot of difficulties due to a lack of title records; the revenue records are presumptive. As per the deed registration system, registration does not convey title. The registration and records of urban properties had a separate system. There were multiple administrative agencies functioning in the states and the centre, which created a lack of coordination. The cadastral records were old, outdated, incomplete and inaccurate. There was a gap among various records due to no updates in them.
The shortcomings of the system have led to insecure titles, which have cost the GDP growth; there is a growing title and boundary dispute, and the cost of litigation is very high. The land records are not recorded properly and thus have created a pathetic situation. There is difficulty in accessing the information by the public and the interest groups.
Guaranteed Title System and Its Impact
The conclusive ownership system is the basis for the guaranteed title system. The Torrens principles are to be applied, and according to the principles, there should be proper entries of all the interests in the land; the registrar shall be the sole source of the ownership information, and the government shall protect a person if the information creates a loss to the person.
The entries made should be correct and true, and the entries in these records are guaranteed. According to the guaranteed title system, there should be records of an accurate description of the property, including boundaries and location as per the cadastral survey, the unique ID for the land and the unified graphical and textual data. A central register of title for all properties should be maintained, and it shall be final and conclusive. There should be the establishment of a title registration system and an auto title updating system, as changes in the records are integral to ensuring smooth transactions and preventing future disputes.
Challenges and Concerns
The Indian Society is very much accommodated to the presumptuous title system; the guaranteed title system is a new concept to the Indian society, and there is not much knowledge present within the society regarding the same. It would require a lot of technology and manpower. It is necessary that the manpower force is technically trained, which causes a limitation. It is very expensive to implement and might cost more than INR 20,000 crore to get it implemented throughout the nation. It requires at least eight to ten years to be implemented throughout the nation and requires high political and administrative will. There is a lack of communication and awareness among the people, which might hamper the implementation of this system in India.
Conclusion
The guaranteed title system will protect the people from losing their ownership over the property. It will help put responsibility on the government and protect the rights and interests of the owner of the property. To achieve proper implementation of the system, there should be the implementation of a single comprehensive land law throughout the nation to reduce multiple different practices across the nation. There should be large-scale surveys carried out throughout the nation to make note of the changed boundaries. There should be a proper administrative set-up, and research and development, and awareness among the larger public.
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WRITTEN BY: I Sharan
