Big relief for homebuyers: Govt's draft bill aims to end middlemen in property registration, with no paperwork

The Centre has unveiled a draft of the Registration Bill, 2025, aimed at modernising the registration of property documents across the nation. This proposed legislation intends to replace the Registration Act of 1908, a colonial-era framework that is ill-suited to the demands of the contemporary digital landscape. The new bill promises an online, paperless, and user-friendly system for property registration, thereby reducing bureaucracy and the need for intermediaries.

The initiative is part of a broader effort to streamline financial transactions, legal decisions, and administrative services that hinge on property documentation. This modernisation is crucial as property documents have evolved to play a pivotal role not only in land deals but also in various financial and legal activities.

The outdated 1908 Act was not designed to accommodate modern necessities such as online document handling and digital identity verification, both of which have become essential in today’s fast-paced world. Property documents are now critical not just for land deals but also serve as a cornerstone for various financial and legal activities. Although several states have already implemented online uploads and Aadhaar-based verification, a central law is deemed necessary to establish a consistent and trusted system throughout India. This uniformity will ensure that all citizens have equal access to efficient and secure property registration processes.

Key features

> One of the key features of the new bill is its focus on making the property registration process more accessible and efficient for homebuyers. Under the proposed system, citizens will be able to register property documents digitally without having to make repeated visits to sub-registrar offices.

> This shift to an online platform is expected to cut down on paperwork, expedite processes, and limit the reliance on middlemen, ultimately offering a more streamlined experience for users.

Additionally, the digital approach is expected to significantly reduce the chances of fraud and errors, providing a more reliable system for all stakeholders involved.

> The bill also promises to enhance legal safeguards by mandating digital records for property transactions. This move is expected to improve the traceability and legal validity of key documents such as agreements to sell, powers of attorney, mortgage deeds, and sale certificates.

> By adopting a digital-first approach, the bill aims to make property transactions more transparent and secure. The digital records will not only serve as a robust legal backing but also facilitate easier access and retrieval of documents when needed, thus enhancing overall efficiency.

In addition to the benefits in terms of document handling and legal security, the bill also addresses the financial aspect of property transactions.

Faster home loan approvals are anticipated, owing to the easier access to necessary documents by financial institutions. This could significantly reduce the waiting period for loan approvals, providing a boon to property buyers and financial institutions alike.

The streamlined documentation process will enable banks to verify and process loan applications more quickly, thus accelerating the entire home-buying process.

The Department of Land Resources is currently conducting a pre-legislative consultation process as part of the bill's development. Interested parties are encouraged to review the draft, which is available on the department’s official website, and submit their feedback. Suggestions may be sent by June 25, 2025, in either MS Word or PDF format, with section-wise comments or proposed amendments. This consultation phase is an opportunity for stakeholders to contribute to the shaping of a law that will impact property transactions nationwide.

While several states have initiated online verification and uploads, the implementation of a unified central law is expected to harmonise these practices across India. The draft bill represents a significant step towards building a more robust and efficient legal framework for property registration, catering to the needs of a rapidly evolving digital society. As the consultation phase progresses, it remains to be seen how the feedback from various stakeholders will shape the final version of the Registration Bill, 2025.