Why Is Property Verification Before Buying a Property in India Essential?
Investing years of savings into purchasing a flat, plot, builder floor, commercial unit or family house means that buyers diligently examine location, interiors and price. But many buyers carelessly neglect to find out whether the person selling actually has clean, marketable title they can transfer.
This is why property due diligence prior to purchasing real estate in India is helpful.
Even if the seller provides a registered document, there are many questions that document alone may not answer. Who previously owned the property? How did the current seller come to own it? Is there another co-owner? Is there a pending claim of inheritance? Is there a mortgage? If someone is signing with a Power of Attorney, do they have the authority to sell? Do the building approvals correspond to the property being offered for sale?
Those questions take on more weight when the buyer is being pressured to make a substantial token payment immediately.
Property Law Services in Delhi from Advocate BK Singh works with buyers, families, investors and businesses to review documents, conduct a title search and perform transaction driven legal due diligence before large sums of money change hands.
The goal isn’t to assure buyer that a problem will never crop up. No attorney should ever provide such an assurance. Rather, the lawyer’s job is to uncover any obvious defects with the title, document inconsistencies, ownership issues, encumbrance concerns and regulatory compliance issues so the buyer has a clear idea of the legal standing of the property before entering into a commercial agreement.
Read more about what clients should expect from a property verification lawyer in India here.
Why Should You Verify a Property Before Paying the Seller?
Title investigation informs the buyer about who owns the property, whether that person has the legal right to sell it and whether the paperwork reflects the transaction as represented. Issues identified prior to payment are usually easier to identify than those realized after taking possession or registration. Even if a seller seems legitimate, he may have incomplete documentation. A family may honestly believe that one person has title to a property when a succession paper suggests there are several legal stakeholders. An agent may have only seen a few of the property's documents and may be unaware that someone earlier along the title chain is missing some critical paperwork.
Delhi NCR transactions may include DDA, municipal, revenue, development- authority, builder, society, RERA and Sub-Registrar documents depending on the age and type of property. Transactions in Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad and other cities in NCR may involve a different combination of authorities as well as local paperwork. Advocate BK Singh can review these records with knowledge of the particular property instead of approaching every sale as if they are the same.
Title problems, if any, can be reviewed by checking information on the site about title disputes and defective titles.
What Should You Know About Property Verification at a Glance?
Quick Facts
- While a registered sale deed suffices for most purchases, it is sometimes advisable to verify prior title chain as well.
- Sale of tangible immovable property falling under the value cap in Section 54 of the Transfer of Property Act, 1882 is only effected by way of registered instrument. Contract for sale does not by itself create any interest in the property.
- Section 17 of the Registration Act, 1908 details classes of documents which affect immovable property and for which registration is mandatory.
- RERA-registration affords opportunity to access useful project information, but should not replace independent title and document verification.
- Mutation, tax and municipal entries may assist due diligence, but are useful only when read in conjunction with actual title documents.
- Transactions involving inherited, jointly-owned, and mortgage properties and those transferred under Power-Of-Attorney typically warrant closer document scrutiny.
- Title due diligence minimizes risk; it cannot absolutely ensure that no claim by third party can ever arise.
What Does a Property Verification Lawyer Actually Check?
Due diligence or property verification means legal scrutiny of the history of title, sellers capacity to sell, supporting documents, potential defects and sale documents. Property verification covers much more than the recent sale deed executed in favour of the seller.
Lawyer BK Singh would likely start with how the current seller became owner of the property. The previous transfer of property could have been by way of sale deed, conveyance, gift deed, partition deed, inheritance, court decree, allotment letter, auction or some other instrument of relevance.
Now the chain preceding that needs to be checked. Did the title of ownership shift from person A to B with the support of documents that convincingly establish the title they claim to have?
Searching titles can also help identify discrepancies. The plot number can change. The dimensions can be off. One document may state the property is a freehold property whereas another shows a leasehold tenure. The name of the seller can change.
If you’re the type of buyer that worries about undisclosed claims on the property, read how to find out if a property is disputed before buying.
Which Indian Laws Can Affect Property Verification?
There is no master checklist for property verification that applies to every transaction in India. Depending on the mode of acquisition and location of the property, a variety of central laws, state laws and local regulations may apply.
For example, the Transfer of Property Act, 1882 Sections 54 and 55 lay down the law with respect to sale. Sale is defined in Section 54 as transfer of ownership in exchange for a price. That Section also defines a completed sale as distinguished from an agreement to sell. Section 55 codifies certain rights and liabilities of buyers and sellers. Notably, it imposes on sellers, in certain defined situations, a duty to make known to buyers material defects in the property or title which buyers would not discover by exercising ordinary care.
The Registration Act, 1908 applies because Section 17 identifies several categories of instruments related to immovable property which are required to be compulsorily registered.
If applicable, the Real Estate (Regulation and Development) Act, 2016 also applies. Section 3 deals with registration of specified real estate projects. Sections 4 and 11 require publication of project information and promoter-related disclosures.
Stamp duty rules, development-control regulations, land laws, apartment rules, and requirements set by individual authorities may differ from State to State, Union Territory to Union Territory and from category to category.
That is why Property title verification is done by Advocate BK Singh based on the property location and legal history instead of following any checklist available on the internet.
Which Property Documents Should Be Reviewed Before Purchase?
The needed documents vary depending on whether you are purchasing a flat/plot/builder floor/agricultural land/commercial property/inherited property/authority-allotted property or other type of real estate. Some standard records that could be involved are:
- Current sale deed/conveyance deed registered in favor of the owner
- Earlier title deeds forming the chain of ownership available
- Agreement to sell/allotment letter/builder-buyer agreement if any
- Mutation and land/revenue records available
- Property tax receipts and documents related to any pending dues
- Approved building plan
- Occupancy certificate/completion certificate if available
- Details of project under RERA for applicable projects
- Documents related to possession
- Power of Attorney if someone has been given authority to act on behalf of owner
- Will/Probate/Succession/Relinquishment/Partition/family-settlement documents if property is being inherited
- Society/association/authority documents relating to the property
- Release from mortgage/brokerage/party who financed any part of property price if applicable
- Identification and authority documents for seller
- Draft of proposed agreement and sale deed.
Another page on our website deals specifically with mutation and land-record related issues in Delhi NCR. Visit Property Mutation in Delhi NCR for more information.
You (the buyer) will not always need all of the above documents. BK Singh can tell you which documents are important once he knows the specifics of the property and how the seller became owner.
Who Should Consider Legal Property Verification Before Buying?
One who invests a significant amount of money into real estate should have their documents reviewed by a lawyer. Certain agreements however merit additional scrutiny.
Unfamiliar with what establishes ownership versus what merely confirms it, is the first time homebuyer. Viewing drafts via screen is the NRI purchaser. To establish authority and permitted usage, the company acquiring an office, boutique, storage facility or industrial space may also require assistance.
Particular attention should be paid to documents when the property is being sold by heirs, has multiple owners, is being sold by an attorney holder, has been pledged for a loan in the past, changes hands several times, has misplaced originals or involves a family disagreement.
Property bought from a builder-or resale that is older can come with additional queries regarding ownership of the land itself, construction documentation, and how the land ties to a specific level.
One who purchases property from an auction site or directly from a company will need documents reviewed once more.
At Property Lawyer Delhi, we can have your documents reviewed by Advocate BK Singh who will analyze all documents related to your transaction rather than give a yes or no answer based on one document.
How Does Advocate BK Singh Assist With Property Verification?
Title research allows a buyer to know what they are buying into before making a substantial financial commitment.
Initially, the documents available are studied. From there we can pinpoint what type of title the seller has and the background of the property. Missing documents, discrepancies or documents requiring further explanation can be brought to attention.
Authority of the seller is also analysed. Just because a person appears in the records does not mean they can sell all interest associated with the property. Joint tenants, heirs, partnerships, company shareholders and Power-of-Attorney situations may be uncovered which may require further research.
Mutation records, approvals, project registrations, construction laws or existing interests are other factors considered where applicable.
The end-result is that the buyer has a better idea of what appears to be supported by the records, what is unknown and what should be questioned prior to purchase.
That is the real value of having Advocate BK Singh perform a Title Search. You don't just get a list of things to look for. We sit down with you and go over the documents within the context of your intended purchase.
Why Should You Hire a Property Lawyer Instead of Checking Documents Yourself?
Many records are easier to find online through portals. But finding a document is NOT the same as interpreting a document legally. If you find a registered deed, you may think you have clear title. A lawyer will likely ask a follow-up question: How did the person who signed that deed acquire the legal interest that was transferred?
That's the same question you should ask about mutation entries, tax receipts and possession documents. Each can serve a purpose. But one supporting document should not be considered automatically as your instrument of title.
Inconsistency is another risk. A document may appear legitimate on its own. But when you line up the current documents with old deeds, descriptions and succession papers, they may tell a different story.
Hiring Advocate BK Singh can be especially helpful when the amounts are large, the paperwork is old, the owner's history is complex or the seller is pushing for fast cash. Legal review should not make the buying decision for you. It should help you make a better informed decision.
Does RERA Registration Mean a Flat Is Automatically Legally Safe?
No. While RERA registration is one critical regulatory filter for projects within its scope, it is not a replacement for conducting property due diligence.
Promoters cannot market/sell covered projects in designated planning areas without registering under Section 3 of the RERA Act, except as otherwise allowed by law. Further, the Act mandates the provision of certain project information on registration and availability through the regulatory structure.
Buyers may still need to review the land title, understand agreement terms, approvals, project status and supporting documents related to the specific unit under purchase. Property Lawyer Delhi offers a comprehensive guide to RERA verification before buying flat.
For transactions related to projects, Advocate BK Singh can use RERA information in conjunction with contractual and title documents instead of relying solely on the registration number as a legal filter.
When Should You Contact a Property Verification Lawyer?
Ideally the review should take place before parting with a substantial non refundable payment, or before signing any binding agreement or registering.
Issues of review arise urgently where the seller does not have the original (or earlier) title papers, other members of the family are claiming an interest, the property was acquired through inheritance, or Power of Attorney is part of the title history.
Review may also be advised where the broker and seller have differing stories, the built-up area quoted does not match documents, or antiquated mortgages/liabilities or pending litigation are disclosed.
Queries regarding registration/stamping may need to be reviewed separately. Buyers with such concerns can refer to portions of the property registry and stamping pages.
Speak to Advocate BK Singh before you part with most of the purchase price and you'll have more flexibility to address/document concerns than you will after the fact.
Why Does Local Property Verification Matter Across Delhi NCR and India?
Central legislation governs property law, but individual transactions deal with State rules, local body regulations, development rules and differences in the type of property you buy.
Delhi properties may deal with entirely different records than a Greater Noida authority- allotted plot. Ghaziabad, Gurugram and Faridabad transactions may each have varied revenue, development and municipal paperwork.
This extends beyond NCR as well. Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, Jaipur, Chandigarh, Lucknow, Kanpur, Prayagraj, Varanasi and more have their own systems of maintaining land records, and State-specific requisites.
Property verification services should account for these variations.
If you’re only looking for an NCR-specific rundown, check here to learn more about property verification in Delhi NCR.
Advocate BK Singh will analyze documents depending on the property type, record availability, transaction structure and any location-based requirements that may apply.
How Can Property Lawyer Delhi Help Before You Buy?
Delhi property Lawyer delivers document centric legal assistance to purchasers seeking more peace of mind before investing funds in a real estate deal.
Title documents, prior title documents, ability of seller to sell, family tree, Power-Of-Attorney, property specs, project documents, approvals, and sale agreements can all be reviewed based on the facts.
Any discrepancies can be spotted before proceeding with the purchase instead of after the fact.
Clients also seek assistance with situations where a seller cannot explain a missing link in the chain of title, a property has multiple stakeholders, property was transferred via a family settlement, or a sale by builder transaction comes with documents the buyer doesn’t understand.
Advocate BK Singh strives to keep his advice straightforward. Due diligence is legal in nature but we try to keep things simple and explained in layman terms.
Visit Property Lawyer Delhi to learn more about our practice.
What Do Buyers Commonly Ask About Property Verification?
1. Why do i need my property to be verified before i buy?
There could be many reasons why you would want to verify your property. To name a few you want to know who the seller is, what the chain of titles looks like if they have the authority to sell, any mortgage, will or other related documents about that property. Having Advocate BK Singh look at these papers can allow him to see if there is anything amiss with your property.
2. If I have a registered sale deed is that enough to know that my property is legit?
A sale deed that is registered can be helpful but it is not everything. There may be more information about that title or property that needs to be looked at before you make the purchase. Make sure you look at all aspects of your transaction before making a purchase on your property.
3. Should I have my property verified before I give a token amount?
Before you pay a hefty token amount you should make sure that you have your important papers for that property. There could be something missing with the title to your property or maybe the person selling it to you does not have the authority to sell. Have Advocate BK Singh look at your documents before you make a big decision.
4. Can I buy an inherited property?
Yes you can but just make sure you know where the seller got their title from. There are many documents that can help you learn this such as title deeds, wills, succession certificates, partition deed, family settlement deeds etc. There could be more people who have legal claim on that property make sure you are informed before you make a purchase.
There could be more people who have legal claim on that property make sure you are informed before you make a purchase.
5. If someone is selling me a property through power of attorney can I verify that?
Yes you can. Just make sure you know who owns the property and that they gave power of attorney to the person that is selling it to you. Also make sure that the power of attorney allows them to do so. Just because someone has power of attorney over a property doesn't mean they own it.
6. Will mutation tell me if I own a property?
Having a mutation is always good but there are other documents that you should know about when it comes to your property. You should look at sale deeds, conveyance deed, wills, partition deeds and many others. Have Advocate BK Singh look at your mutation and title chain.
7. If I verify my property through RERA do I still need to look into the title of that property?
Yes RERA can be helpful when buying property but there are more things you should look at before you make your purchase. Make sure you look into all your options and have your property verified before you make your purchase.
8. Can my lawyer assure me that there will never be a dispute on my property?
No one can assure you that there will never be a dispute on your property. All we can do is point out flaws in your title that we may come across when looking into your property. This will allow you to know what you are getting into when you purchase that property.
9. Do I need to verify my commercial property?
Yes you should verify your commercial property. Depending on what you are looking to buy you may want to know who owns the property and if they have the ability to sell it to you. Whether it's a shop, office space or even warehouse you should have your property verified before you make a purchase.
10. Why should I speak to Advocate BK Singh before I buy property?
You should speak to Advocate BK Singh because he can look at all of your documents. From Title Deeds, wills, succession certificate, power of attorney, agreements and anything else that pertains to your property. He can inform you of any legal issues that he finds with your property.
Conclusion
You should never rely on verifying your property just before you register.
It's better to get your key documents verified when you still have time to question the process, find more documents or back out of buying the property.
A property can look perfect but may not have complete title history. You could have your registered document but a family could claim to own it. You can own the property but may not have the right to sell what your selling.
By doing proper verification you may not be able to eliminate all risks that could happen in future but you'll know what to watch out for before you invest your hard earned money.
If you are a buyer, family, NRI or corporate who wants their property documents verified, title search and property transaction checks Advocate BK Singh can help you at Property Lawyer Delhi based on your requirements and location.
