By Accommodation Times Bureau
Real estate transactions in India come with their own set of challenges. In the secondary market, the major challenges are on the payment side where a lump sum amount is blocked in the transaction process and the entire amount is at high risk.
Cash transactions are another challenge, with sellers demanding payment in cash to avoid capital gains tax. Lastly, documentation or the legal vetting of property papers is a big challenge, with incomplete or unclear property chains.
In a majority of the cases, end users are unaware of these possible challenges, ultimately bringing legal anguish, black money and deception into the sector. On the basis of such operational-level challenges, we have divided states into ‘low’, ‘neutral’ and ‘high’ levels of risks associated with real estate transactions.
“The secondary property market in India is very fragmented. It is larger than the primary market and so is the pain for the property buyers and sellers. Top 10 cities have about 340 sub-registrar offices registering over 1 million property documents a year. Securing advance and property title is critical as it is the largest transaction we make during our lifetime.” Ashwin Chawwla, CEO, Trustmore Technologies said.
The above information was given in FICCI-Grant Thornton-Escrowffrr Knowledge Report.