How to verify property documents?

How to Verify Property Documents in India

Verifying property documents is a critical step in the process of purchasing real estate in India. It ensures that the property you’re buying is free from legal complications and that the seller has the legitimate right to sell it. Proper verification of documents can help avoid disputes, financial losses, and legal issues in the future. Below is a detailed guide on how to verify property documents:

1. Title Deed Verification

  • Title Deed Overview: The title deed is the most crucial document in a property transaction. It serves as proof of ownership and should clearly state the name of the seller as the owner.
  • Chain of Title: Ensure the title deed is clear and free from any encumbrances. You should trace the ownership history of the property for at least the past 30 years. This is known as verifying the “chain of title.” If any part of the chain is missing or unclear, it could lead to future disputes.
  • Original Deed: Ask for the original title deed, not just photocopies. Examine the deed for any signs of tampering or forgery.

2. Encumbrance Certificate (EC)

  • Purpose of EC: The Encumbrance Certificate is essential to check whether the property is free from any financial or legal liabilities, such as loans, mortgages, or pending litigation.
  • How to Obtain: You can obtain an EC from the sub-registrar’s office where the property is registered. The EC will reflect any registered transactions against the property, such as sales, gifts, mortgages, etc.
  • Time Frame: It’s advisable to get an EC for at least the past 13 years, though 30 years is preferable for a thorough check.

3. Mother Deed

  • What is a Mother Deed?: The mother deed is the first document that traces the ownership of the property. It is crucial for establishing the original owner and all subsequent transactions related to the property.
  • Importance: The mother deed is especially important for older properties, where ownership may have changed hands multiple times. Ensure that the document is complete and correctly references all transfers of ownership.
  • Verification: Have a legal expert review the mother deed to confirm that the ownership trail is unbroken and legitimate.

4. Sale Agreement

  • Drafting and Review: The sale agreement outlines the terms and conditions of the sale, including the price, payment schedule, and possession date. It is a precursor to the final sale deed.
  • Verification: Ensure that the sale agreement includes all necessary details, such as the names of the buyer and seller, property description, and payment terms. It should also be reviewed by a legal expert to ensure there are no hidden clauses that could affect your rights.

5. Approved Building Plan

  • What to Check: Verify that the building plan has been approved by the local municipal authority. This ensures that the construction complies with local zoning laws and regulations.
  • Completion Certificate: If the property is newly constructed, verify that the builder has obtained a completion certificate. This certificate is issued by the municipal corporation and confirms that the construction is complete and adheres to the approved plan.

6. Occupancy Certificate

  • Purpose: The Occupancy Certificate (OC) is issued by the local municipal authority and certifies that the building is fit for occupation. It ensures that the property has been built according to the approved plan and is safe for living.
  • Verification: Request the OC from the seller, especially if you are buying an apartment in a housing society. Without an OC, the property could be deemed illegal by the authorities.

7. Property Tax Receipts

  • What to Verify: Check that all property taxes have been paid up to date. Any outstanding taxes could become your liability once the property is transferred to your name.
  • Importance: Property tax receipts are also an indicator that the seller is the legal owner of the property. Ensure that the tax receipts match the name of the seller and the property description.

8. No Objection Certificates (NOCs)

  • When Required: Depending on the property type and location, you may need NOCs from various authorities, such as the municipal corporation, electricity board, water supply department, and pollution control board.
  • Verification: Ensure that the seller has obtained all necessary NOCs, especially if the property is in a large housing project or commercial complex.

9. Verification of Land Use

  • Land Use Zoning: Verify that the land on which the property is built is classified for the intended use (residential, commercial, industrial, etc.). This can be done by checking with the local municipal authorities.
  • Conversion Certificate: If agricultural land has been converted for residential or commercial use, verify that the proper conversion certificate has been obtained from the revenue department.

10. RERA Registration

  • RERA Compliance: For properties under construction, verify that the project is registered with the Real Estate Regulatory Authority (RERA). This ensures that the builder adheres to legal norms and offers protection to buyers.
  • RERA Number: Check the RERA registration number on the project’s website or the RERA portal to confirm that the project details match what has been promised by the builder.

11. Check for Pending Litigation

  • Court Records: Check local court records to verify that the property is not involved in any litigation. This step is crucial to avoid purchasing a property that is under dispute.
  • Legal Expert Consultation: Engage a legal expert to conduct a detailed search for any pending cases or disputes related to the property.

12. Society Documents

  • Society NOC: If the property is part of a cooperative housing society, obtain a No Objection Certificate (NOC) from the society. This document confirms that the seller has no outstanding dues and that the society has approved the sale.
  • Society Bylaws: Review the society’s bylaws and ensure that the property complies with them. This is particularly important for resale properties in older housing societies.

13. Utility Bills and Receipts

  • Utility Verification: Verify that all utility bills, such as electricity, water, and gas, are paid up to date. Ensure that these services are registered in the name of the seller.
  • Transfer Procedure: Understand the procedure for transferring utility services to your name once the property is purchased.

14. Legal Due Diligence

  • Hire a Lawyer: Engage a qualified lawyer who specializes in property law to conduct a thorough due diligence of all property documents. This will help identify any potential legal issues and ensure that the transaction is legally sound.
  • Document Review: The lawyer should review all documents, including the sale deed, title deed, encumbrance certificate, and others, to confirm their authenticity and validity.

Conclusion

Verifying property documents is a meticulous process that requires attention to detail and a thorough understanding of legal requirements. By following the steps outlined above, you can ensure that the property you intend to purchase is legally clear, free from encumbrances, and a sound investment. Always consider consulting with legal and real estate experts to guide you through this process and to avoid any future disputes or legal complications.

Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.

Advocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)

Contact: 88271 22304

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