Aadhaar Property Linking: Homebuyers can expect price crash, transparency, timely delivery

Aadhaar Property Linking: After making Aadhaar Card mandatory for Income Tax Return (ITR) filing and getting one's PAN (Permanent Account Number), Centre is likely to make Aadhaar Property registration mandatory. That means UIDAI-based authentication is set to become compulsory for real estate deals too. To do that, one will have to get his or her Aadhaar link to the property. Real estate experts are of the opinion that the move is a welcome move as it would help property-related KYC's availability in the public domain and anybody who wants to purchase or sell property can have access to the concerned papers required for the fair deal. It would eradicate fraudulent activities taking place with the homebuyers as transparency and timely delivery would become a permanent practice in the sector. 

Property Prices to Reduce?
Real estate experts further said that making Aadhaar mandatory for property registration will eradicate the role of brokers leading to the lowering of real estate property prices at the pan India level.

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What does Aadhaar Property linking means for a homebuyer?
Rajan Bandelkar, President, NAREDCO Maharashtra said, "Aadhaar property registration has the potential to weed out black money and eradicate fraudulence from the real estate sector. This move also has the potential to enable rationalization of home prices, as all those who have invested in Benami property will rush to disinvest. The Aadhaar-property linkage will also provide some ease to procedures related to home buying such as home loan, property transaction, sale or purchase of property, etc, due to enhanced transparency. Since the entire linking process will be time-consuming, the government should give enough time to property owners."

Ashish R Puravankara, MD, Puravankara Ltd said, “With the advent of the Real Estate Regulatory Authority (RERA) Act and GST, the Government has been able to bring in an efficient ecosystem and thus, the homebuyers are benefitted with transparency and promise for on-time delivery. Aadhaar Property linking will act as another catalyst towards helping the sector boost confidence in homebuyers and in parallel will contribute to the growth of the sector in the next five years."

Puravankara went on to add that the Aadhaar property linking move may further augment the path towards a compliant and regulated business environment, assuring the dedicated and reliable players to operate and perform in the wave of shifting economic condition and aligning all the stakeholders including home buyers, real estate developers and investors on the same page.

Gururaj Bhat, CFO, Karle Group said, "First and foremost, the fact that Aadhaar is interlinked to PAN will result in hardly any scope for evading tax liability and will help avoid tax evasion. The mandatory linkage of Aadhaar at the time of registration will further eradicate Benami registration. At the time of registration, mandatory ID proof and Aadhaar will make the process easy as Registration offices can easily verify the Aadhar of both the buyer and seller online to avoid any fraudulent transactions. An added bonus will be the fact that paperless verification will be encouraged. Linking Aadhaar to the purchase & sale of properties will also help financial institutions verify the property details online for the purpose of lending against the same  and the chances of multiple lending against the same property may not arise."