Delhi May Make Builder-Landowner Agreements Mandatory to Register
NEW DELHI, August 29, 2026: The Delhi government is considering changes to property registration rules that could make builder-landowner agreements mandatory to register with the sub-registrar's office. A 1% registration fee may also be imposed on such agreements.
The proposed move aims to bring greater transparency to property development arrangements and reduce disputes over ownership rights and division of built-up space.
Stamp Paper Agreements May No Longer Be Enough
At present, builder-landowner arrangements, particularly for smaller plots of around 80 to 100 square yards, are often executed on low-value stamp papers. Some agreements also involve cash payments in return for a specific floor in a building.
Under the proposed framework, simply signing such an agreement on stamp paper may not be sufficient. Formal registration with the sub-registrar could become compulsory.
Unregistered Agreements Could Affect Future Sales
The proposed rules could have a direct impact when a property covered by an unregistered builder-landowner agreement is subsequently sold.
Officials cited in the reports said the pending registration fee could potentially be recovered later, creating an additional 1% cost for the buyer.
Delhi Also Plans Stricter GPA Property Rules
The government is also considering tighter rules for property transfers through General Power of Attorney (GPA).
A proposed framework could impose stamp duty on GPA-based transfers to people outside the immediate blood-relations category. The government is reportedly considering a 4% stamp duty for certain GPA transactions.
Collector Approval Could Become Mandatory
Under the proposed process, the Collector of Stamps would determine whether a GPA document is merely a power of attorney or effectively attracts stamp duty applicable to a conveyance deed.
The Collector would be required to issue a written decision within 30 days, with an extension of up to three months in exceptional cases. Until the applicable decision and stamp duty are completed, such documents would not be eligible for registration.
Why It Matters for Property Buyers
If implemented, the changes could make property transactions involving builders, landowners and GPA arrangements more transparent. Buyers should carefully verify whether the underlying agreement is properly registered and whether the required stamp duty and registration charges have been paid before purchasing such properties.
Important: These are proposed changes, not yet established rules. Buyers should check the final notification before relying on the proposed fee or registration requirements.