Check title deeds before proceeding further

Before signing the dotted line to buy the dream home, one must make sure that the title deeds of the property are in order. 

The title deeds are the set of documents that would clearly establish the seller's ownership of the property and his right to sell it. 

With so much illegal property transactions happening around us using forged documentation, it’s essential to check the veracity of the document copies supplied by the builder or developer to the buyer. It’s the buyer’s right to demand for the copies of title deeds, parent documents and no due certificate or EC from the seller. Since all these are merely photo copies, there is no need to pay a blocking amount (which is normally between Rs 10000 to Rs 50000) as demanded by the seller. 

Screening of title deeds

As genuine builders get a legal opinion of the property from a competent advocates, this part becomes easy for the buyers as they simply have to get the copies of the lawyer opinion and verify the same. If one is not satisfied with this, he can always get the opinion from the lawyer known to him.

Therefore, getting a written opinion on the title from the Builder’s advocate along with photocopies of the title deeds is the first step towards making the transaction trouble-free. If one finds any discrepancies or delay in providing the relevant documents, buyers can simply walk out of the builder’s office and find a better seller and project.

One must also see the Agreement of Sale between the owner of the land and the builder.

“We strongly recommend that the purchaser should pursue the original title deed of the property along with the related parent documents to verify the legal right of the builder to sell the property. He or she should also verify the power of attorney executed in the favour of the builder to develop and sell the property. Copies of these documents should be insisted upon for the buyer’s record purpose as in future if the buyer proposes to transact or deal with his apartment, proper documentation shall play a vital role. However, a notarised power may not be accepted for property transfer by all governmental/financial agencies,” says Chitty Babu, CEO of Akshaya Homes.

There are various ways the owner might have acquired the property and this decide the key documents to be seen - Registered Deed should be checked if the Property was purchased directly from the sole owner; Check for Probated Will, if the  property came to them by a will known as testamentary succession. If no Executor / Executrix has been appointed, one should see the letters of Administration granted by District / High Court according to law. Property devolved through succession: If the earlier owner died without leaving a Will, the legal heirs and successors obtain a Deed of Succession issued by the Sub-Registrar or an Inventry of the assets from the District Court, which must be seen, so obtain a noterised copy.

Property developed through a Gift / Partition / Settlement / Exchange:  The Deed relating to such transfer of Title - Gift Deed / Settlement Deed / Deed of Relinquishment / Exchange Deed - must be checked.

Encumbrance Certificate (EC) for the preceding 31 years, preferably showing no mortgages or other encumbrances that are still existing on the date of purchase. Exercise caution if an uncleared mortgage or other lien on the property is shown in the Encumbrance Certificate.

Last but not the least, the property being sold must be free of restrictions for sale under the Urban Land Ceiling Act.

Though all these above points and even more will be checked by the advocate, one should insist for a certified legal opinion from the advocate concerned. This is always better as in future if some legal issues crop up, we can always get back to him for further action.

For land deal

According to Sriram Properties, “The legal status of the land is one of the first issues that one should address before confirming a property. It is not advisable to make any confirmation by paying advance before checking the legal status of the property.”

Before purchasing a property, there are a number of enquiries that need to be done to confirm that the land has a clear and marketable title. The first thing is to find out the tenure and legal right of the holder of the land in government records. The tenure or possession right could be freehold, leasehold or may be held under a government grant. Freehold land is always most preferable. The seller should provide all the necessary documents to the buyer.