Purchase of property involves most money that families spend. Understandably Buyers are often more concerned about locality, construction quality, price & interiors than about documents proving the sellerâ rights over the property.
This can be a wrong approach.
Granted the seller will show you a registered sale deed. But thatâs just one document in a long chain. Maybe there was an assignment previously that the seller isnât telling you about. Maybe there is a bank mortgage on the property. Maybe mutation records that prove payment of property taxes are in someone elseâs name. Maybe the apartment you are buying was sold without following rules and has sanction violations. Maybe if you are inheriting property, other legal heirs may have been given share of the property too.
Knowing what documents to check to establish ownership of a property is thus crucial before you decide to spend your hard earned money.
Property verification isnât about ticking boxes on a checklist to see if photocopies âlookâ genuine. Itâs about understanding who really owns the property, how did the seller obtain possession, is there any known legal/financial claim on the property, do the property boundaries match with relevant government records, and could entering into a transaction with the seller possibly leave you open to any unforeseen liability?
For instance, if you are buying property in Delhi, New Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad or anywhere else in India, whether the property is freehold or leasehold will affect what documents youâll need for property verification. Whether the property was inherited from parents vs. bought from a builder vs. allotted by a housing society will also affect what documents you should check. Even if the property was financed through a mortgage, will affect the property verification process.
We often get Buyers asking Advocate BK Singh to conduct due diligence on property that they are buying. Donât find a problem with the property documents only after you have already paid a substantial amount to the seller. At the very minimum have a lawyer verify documents before you make a large payment, sign the sale deed/purchase agreement or at property registration.
Why Should Property Documents Be Verified Before You Pay the Seller?
Title problems can arise from something that may have seemed insignificant or harmless at the time of your deal: a previous deed wasnât searched, the sellerâs authority to sell was assumed, a mortgage was overlooked, the legal description of the property doesnât tie between two documents or the seller inherited the property and you didnât request copies of the succession documents.
By conducting a title search, a buyer will know what risks they are getting into upfront, prior to becoming engaged in an expensive legal dispute.
Advocate BK Singh will also help you differentiate between a simple paperwork problem and a title issue that needs to be explored further.
As the buyer of a property, an ounce of prevention is worth a pound of cure after title problems are discovered following registration, taking possession of the property or handing over the purchase price.
What Quick Facts Should Every Property Buyer Know?
- A registered document ideally needs to be cross-checked with the prior chain of title.
- Title mutation/municipal records are not always treated as âconclusiveâ proof of ownership. Proceed with caution.
- Liens such as mortgages, charges and third-party rights can affect transactions.
- Title of land/plot for construction projects may need to be vetted along with sanctioned plans, permissions & other RERA documents.
- Succession/legal heir certificates may be required for properties bought through inheritance.
- Description, area and boundaries of the property mentioned in all relevant documents should match.
- Verify relevant documents as per the type of property and its location.
- For example, RERA guidelines for validated real-estate projects state that documents pertaining to clear title, encumbrances/free title, approvals and sanctioned project plans need to be verified. That is why buyers need to check documents other than the sale deed before buying.
What Does Property Verification Actually Mean?
Title review conveys a lawyer's review of the documents/facts supporting a proposed real estate deal.
Includes whether the seller appears to have conveyable rights, whether the chain of title appears reasonable, whether there are some records discrepancies, and whether questions should be asked of the seller before purchase.
No proper review can insure that each title will be free from some future claim. Each legal position will be different depending on what documents are presented, history of transaction, type of property and locale.
BK Singh can review these records with you rather than relying on someone else's opinion based on 1 document alone.
What Are the 10 Main Documents Required for Property Verification?
If there is an existing sale deed/conveyance deed (since conveyance deeds are being phased out it is likely to be a sale deed), this will likely be one of the first documents requested as it evidences the transfer through which the seller received title to the property. Names, description of property, consideration paid, registration and date of transfer etc. will need to be checked.
Donât assume itâs a whole deed â sometimes what appears to be a complete deed will need to be checked against previous transfer documents.
Past sale deeds/conveyance deeds/gift deeds/partition deeds/ relinquishment deeds (or similar) deeds will show how ownership has passed from owner to owner throughout the years.
Missing links in the title chain will need to be verified.
Our live website has title-disputes listed in property transactions under the services section highlighting title- chain verification.
Advocate BK Singh will help you figure out whether the chain of title you can view matches up with what the seller is telling you.
A buyer will generally want to confirm that the property has never been mortgaged, charged, or subjected to any other known registered encumbrance.
Loan documents, release documents, and any other relevant encumbrance related document could potentially come into play.
Do not risk giving money to the seller until you know about any outstanding loan liability.
Mutation records/revenue records/ municipal records can sometimes provide clues as how the property is listed out in official records.
These records should normally not be relied upon in isolation and should generally be reviewed in conjunction with the actual ownership documents.
We have a separate page dedicated to mutation records and land records related questions as we have experienced far too many issues with these records during property transactions.
Property-tax receipts are another great source to review as it will show how the property is listed with the local municipal authority.
Outstanding dues that need to be paid may become apparent upon review of tax receipts. Tax receipts also reveal if the name, property number, or even the property description is different from what you are expecting.
Advocate BK Singh will cross verify these tax records with title papers if any differences are spotted.
In cases where the sale/purchase involves a constructed property, it will be important for the buyer to ensure that building plans and approvals correspond with the property that is up for purchase.
Just because a flat or commercial property looks impressive does not mean that all the building approvals are in place.
Under RERA, sanctioned plans/approvals are part of the information about the project which needs to be provided to home buyers.
Based on the type of property, location, and local regulations a completion certificate or occupancy certificate or other similar certification issued by the relevant government agency may be worth reviewing.
Completion certificates/ occupancy certificates tend to matter more for apartments and developed properties. Verify with your lawyer the specific requirement based on the type of property and donât assume it wonât apply to you.
If the property is part of a real-estate project, purchasers should evaluate whether project registration details are provided, if allotment letters were given, if an agreement for sale was executed, if plans were approved by the local civic authority, if project approvals are in place and what information was provided about title and encumbrances.
Contact Property Lawyer Delhi to find out what builder/publisher specific documents apply to the property you are thinking of buying.
Visit our page dedicated to RERA property related queries.
Try looking at all the property records in the world. They will not help you if the person selling the property does not have the legal capacity to sell it to you.
If an individual is selling by himself, you might want identity proof. If a company is selling, there might be additional documents you will want to see proving who has the authority to sell the property on behalf of the company. Looking at authorized agents, powers of attorney, legal heirs, and joint owners are just some of the many situations where additional documents other than the sale deed will need to be inspected.
Just because someone has the original property documents does not mean they can sell you the property.
Will/ Probate (where required), death certificate, legal heir certificate, relinquishment deed, family settlement agreement or similar documents may become important if the property was acquired by the seller because of death or transfer within a family.
Is there someone else who can claim ownership rights in the property? Learn who you are actually buying the property from prior to signing a purchase agreement.
We will examine both the succession documents (if any exist) as well as conduct a title verification before you finalize the decision to buy.
Who Should Consider Professional Property Verification?
Legal Due diligence helps everyone- new home buyers,resale home buyers,Families,NRIs, Proprietary firms investing in commercial premises,sellers buying property from heir, authority allotted land buyers,leasehold property buyers.Even legal due diligence becomes essential when the documents are old, property is transferred multiple times,mortgaged,when different family members involve in property dispute or when the seller demands high token amount quickly.
You can consult Delhi NCR Lawyers like Advocate BK Singh to know about your property as per documents before you pay or register the property.
Which Documents Should You Bring for Property Verification?
Other than these ten documents maintain copy of any agreement to sell, share allotment letter, possession letter, payment receipt, loan papers, bank release, conversion deed, lease deed, society documents, correspondence with seller and copy of court/order from any government body.
Issue pertaining to registry/stamp can be resolved separately. We at Property Lawyer Delhi have a separate service just to solve registry/stamp related problems.
When Should Property Verification Be Completed?
Verification should occur before payment of a substantial non-refundable amount and before final registration.
Many Buyers call for advice after they have sent the seller a large token payment and have received the documents back. The documents provided leave more questions for the Buyer.
Too late. You are now limited with your choices.
Had you consulted Advocate BK Singh before you entered into the transaction you would have been able to review the transaction at a stage where the buyer can ask for outstanding documents, clarify discrepancies and eliminate unacceptable deals.
When Should You Consult Advocate BK Singh for Property Verification?
Hire a lawyer if :-
- seller does not have the original set of Title documents from the beginning
- there are differences in name / property description from document to document
- the property is bought through inheritance/ succession/ will
- Power of attorney is involved
- the property was already mortgaged in the past
- more than 1 family member has an interest in the property
- the documents handed by the builder are not clear enough.
- the seller is harassing you to pay the amount right away.
- or you just want some 3rd party opinion before you shell out so much money. BK Singh will examine the documents keeping only your property in mind. He will not match your documents with a generic checklist that is used for every deal.
Why Hire Property Lawyer Delhi Before Buying a Property?
Lawyer offering document based services to purchasers who want to know what they are buying before they buy residential, commercial or investment real estate. Delhi Advocate BK Singh. Delhi Real Estate Lawyer
We can examine the chain of title, sellers ability to sell, registration papers, mutation or land records, mortgage paperwork, builder documents and any other pertinent paperwork included in your deal. Delhi Real Estate Lawyer
Instead of assuring a buyer everything is okay because "the papers look good", Advocate BK Singh will highlight any issues and share with you what they mean. Delhi Advocate For Property
Through our verified website, buyers can also learn about various other real estate services. Property Lawyer In Delhi
After all, isn't your objective simply knowing what you're buying before you purchase it?
Commonly Ask About Property Verification?
01. Will a registered sale deed suffice for verification of property?
Ans: There is no magic document which will get you verified. Along with the recent sale deed, previous titles, power of seller, encumbrance certificates and other related property documents may also need to be looked at.02. Will you help me verify the property documents before buying it?
02. Will you help me verify the property documents before buying it?
Ans:Yes. Advocate BK Singh can go through documents submitted to him by the buyer and point out any title, document, power or transaction specific issues that need clarification.
03. Will mutation establish the ownership of a property?
Ans:Mutation is an important govt./revenue record. But make sure you verify the documents on which mutation has been done before believing a sellerâs claim of ownership on a property.
04. Is verification of property necessary before paying the token amount?
Ans: Ideally verification should be carried out before you exchange large/non refundable amounts. Verify that there are no serious issues with documents before you give away your money.
05. What should I do if the seller has an old property but does not have previous sale deeds?
Ans: Lacking documents only increases the need for proper property verification. Advocate BK Singh will advise you on whether the title is conclusively established by looking at the existing documents or do we need to trace back the old sale deeds.
06. Do I really need to verify a flat bought from a builder?
Ans: Yes. Verification of property bought from builders will include reviewing the title of the project, RERA details, sale agreement, sanctioned plan, approvals, allotment letter etc.
07. Is verification of property necessary if I am inheriting it?
Ans: Yes. Verification of property being obtained through succession will include reading of wills, identifying legal heirs, getting release deeds executed by other family members etc. A lawyer will help you identify any potential problems or if there is anyone else who can claim ownership of the property.
08. If you lawyerâs verify the property now, does that mean I am sure to not have any disputes in future?
Ans:No. Verifying documents will help you understand the risk involved based on what documents are available now. Document verification does not prevent the possibility of a claim coming up against your property in future.
Property documents differ from property to property. Some properties have all documents available while others may have documents missing.
09. Can a property I am buying abroad be verified?
Ans: Yes. Property documents for properties being purchased by NRIs/Foreigners can be reviewed before the transaction is completed.By simply providing copies of the property documents, we can help you review the documents before you fly back and make the purchase. This is specially helpful in cases where there are agents involved, Power of Attorney being used or if the property documents are located abroad.
10. I have a broker. Why would I need a lawyer?
Ans: Brokers facilitate transactions. Lawyers find legal issues. Advocate BK Singh will review all title related documents from a risk averse perspective and double check title, power and documents before you spend your money.
Conclusion
When due diligence or property verification is done on a property, all the documents related to the history of the land you wish to buy are reviewed. These documents tell you the story of who owned your dream flat(or farm or office) and how they came to own it. Donât assume that because a flat is being sold by a large builder that they will have all the documents neatly maintained just as you should not assume because a property is old that all the documents are missing or not maintained. You cannot determine this just by seeing the property.
Have Advocate BK Singh review these documents for you. Before you pay a huge amount of money, sign any agreement documents or visit the registrations office we can review your property documents for you. A one time fee to have us conduct due diligence on the property's documents are insignificant when compared to the risk you take when you find out about a major defect after you have already paid the builder/vendor.
