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Is Holding a Demat Account for Real Estate the Future of India

In India, disputes over land titles and ownership are one of the most infamous factors circumscribing the nation’s development. Such disputes contribute towards the underutilization of available land, mounting opportunity costs as well as years of unnecessary litigation fees and charges. In short, the progress of the nation and its real estate sector is dwarfed by such disputes over land ownership.

To help assuage this pivotal issue, the government plans to initiate a policy of Demat account opening specifically for the real estate sector in the country.

What is a Demat Account for Land?

An online Demat account is mandatory for anyone who wishes to trade on the stock market. Such Demat accounts are responsible for storing the ownership details about the stocks purchased by an individual in question. A Demat account for land offers a similar kind of functionality to its beneficiary.

The property owned by an individual is listed in his online Demat account. Changes in ownership of such real estate titles will be reflected on the very same account. Thus, if the person in question buys or sells his existing real estate listings, a corresponding alteration will be visible on his Demat account for real estate.

Is a Demat Account for Real Estate the Future of India?

Since land ownership quarrels have plagued the better part of India’s real estate legacy, it is only but natural to see how such Demat accounts for land can help solve the issue. By establishing a dematerialized register of land ownership details, Demat accounts can efficiently tackle the core of this problem.

Demat accounts for land have been hailed as the future of real estate in the country because this strategy will inevitably contribute towards circumventing property fraud. By allowing authorities to cross-verify the exclusivity of land ownership on this dematerialized portal, defrauding can be prevented. The support this planned endeavor has garnered from lenders across the country is a testament to its usefulness in minimizing instances of home loan fraud.

Conclusion

Digitization of the real estate sector is evidently the most prudent way forward. After acknowledging India’s longstanding history of land disputes and property ownership squabbles, a free Demat account for real estate seems like a favorable tool for streamlining and minimizing such eventualities. Much like Demat accounts designed for the stock market, those dedicated to the real estate segment work to store information about the property owned by the holder of the account. This invariably helps rationalize and restructure the way ownership of land was conceptualized in the country, while simultaneously minimizing the possibilities of defrauding lenders.