Chandigarh admn plans to play ‘broker’ in private property deals

Aiming to ensure fair pricing and protect buyers from disputed or fraudulent transactions, the UT Estate Office is planning to directly facilitate the sale and purchase of private properties.

Once the mechanism is implemented, buyers and sellers will no longer need to depend on private property dealers or middlemen, as the administration itself will act as a facilitator.

The administration will step in between buyers and sellers to ensure fair valuation, clear titles and dispute-free transactions — all in exchange for a fixed 0.5% commission, compared to the typical 1% charged by private property dealers.

Under the proposed framework, the Estate Office will conduct the sale of private properties through an e-auction process quarterly, similar to the auction of government properties.

Deputy commissioner-cum-UT estate officer Nishant Yadav said a draft for the proposal had been prepared and will be forwarded to higher authorities for clearance. “The initiative is intended at bringing greater clarity and trust to property deals while curbing underpricing and illegal transactions. Our objective is to ensure fair valuation and transparent dealings,” he said.

He said the proposed mechanism was also expected to benefit non-resident Indians (NRIs), who often faced difficulties in selling their properties due to lack of oversight and fear of fraud.

Being attempted for the first time, the proposal seeks to make private property transactions transparent, regulated and secure. By streamlining and regulating the process, the administration hopes to provide a safer and more reliable platform for property transactions.

Officials said the initiative aimed to curb the widespread practice of underpricing properties at the time of registration, which not only caused revenue loss to the government but also led to legal disputes in future.

Authorised intermediary between buyer and seller

Under the new mechanism, property owners intending to sell residential or commercial properties will be required to register their property details on a government portal.

The Estate Office, which already maintains comprehensive records of city properties, will verify ownership documents and check whether the property is free from disputes or legal shortcomings.

If any deficiencies or documentation gaps are found, the department will facilitate their resolution before the property is put up for sale.

This step is expected to protect buyers from the risk of purchasing disputed or legally flawed properties.

Once verified, the property will be listed for quarterly e-auctions at the reserve price fixed by the seller. The highest bidder will be declared the buyer, after which the Estate Department will also oversee the registration process and transfer of ownership.

Officials say the administration’s involvement will ensure clean and lawful transactions while preventing artificial price manipulation by private dealers.

Major relief for NRIs

The proposed system is expected to provide significant relief to NRIs, who often face difficulties in selling or transferring properties due to lack of local oversight and fear of fraud. A structured, government-backed mechanism will offer NRIs a safe and reliable platform to sell their properties without the risk of cheating or undervaluation.

White money only, full stamp duty

All property transactions will be conducted entirely through legally earned income (white money). Buyers will be required to pay the full transaction value, with stamp duty levied on the entire amount.

At present, many transactions are registered at collector rates or undervalued figures, resulting in loss of stamp duty revenue. With the administration charging 7% stamp duty, irrespective of the property owner’s gender, officials expect the system to significantly boost government earnings.