The Maharashtra government is set to revolutionize property ownership documentation through the introduction of vertical property cards, a move that promises to bring unprecedented clarity to flat ownership across the state.
What Are Vertical Property Cards?
Vertical property cards will serve as legal documents that clearly outline two critical pieces of information: the total land area of a building and each flat owner's individual share of that land. This initiative addresses a long-standing gap in Maharashtra's land record system, where individual flat owners' names and their land share were previously absent from official revenue documents.
Currently, property rights under the Maharashtra Land Revenue Code, 1966 typically mention only the land-holding entity, usually the cooperative society or developer, leaving individual flat owners without direct recognition in government land records.
The new system will create a uniform framework for documenting ownership details of individual flat holders across Maharashtra. While new flats will automatically receive these cards, existing flat owners will need to apply for them through designated channels.
Current System Challenges and New Solutions
Under the existing system, most flat owners in Maharashtra, particularly in Mumbai's multistorey buildings, rely on sale deeds and share certificates from housing societies as proof of ownership. This incomplete documentation has led to numerous challenges:
- Difficulty in mortgaging properties with financial institutions
- Complex and lengthy sale processes
- Inheritance complications
- Ownership disputes among flat owners
- Challenges in property verification and financing
The lack of clear land records has become particularly problematic in Mumbai's redevelopment frenzy, where old housing societies are being replaced with modern highrises. According to property advisory Knight Frank India, current redevelopment projects in Mumbai will add 44,277 new homes valued at ₹1,30,500 crore.
Impact on Property Value and Transactions
While the new vertical property cards may not immediately increase property values in primary transactions, they are expected to significantly enhance resale value and streamline various property-related processes.
The cards will provide clear legal proof of ownership and land share, making future transactions smoother for both buyers and lenders. Banks will find it easier to process home loans, while inheritance procedures will become more straightforward.
The initiative is particularly timely given the rapid vertical growth in cities like Mumbai, where traditional land records have failed to capture the nuances of multi-storey building ownership. The new system will allow instant verification of ownership details, potentially reducing transaction times from weeks to minutes.
A government committee is currently drafting rules to integrate flat ownership into land records and document common areas and land beneath buildings. The committee's report is expected to be submitted soon, paving the way for implementation.
The Maharashtra government emphasizes that this initiative aims to simplify home loans, property transactions, and redevelopment processes while controlling illegal construction and preventing ownership disputes that have plagued the real estate sector for decades.
