Why is it important to perform a property title verification before buying any property?

Last Updated at: January 14, 2020
1076

Property purchase in India it is necessary to do a property title search to verify the property you are purchasing carries an impeccable title and is free from all kinds of charges. As the budget involved in the purchase of the property is high, it is always suggested that all the property buyers get a title search of the property gets done by a qualified lawyer or expert.

Thi article sheds lights on the document review and property title verification process. It is always recommended that approaching a lawyer or a legal expert to get the documentation verified and take the property title report to avoid any kind of ownership issues in the future.

The title search is thorough research of the property and review of all the property papers before investing, buying, selling, leasing of a property. It is a process where one is taking the reasonable and necessary steps and this may also include conducting the search in Registrar Office and reading through different Acts and Regulations.

There are various aspects to title search and can be varied from one property to another property, i.e, ready to buy, resale, under construction, redeveloped properties etc. There are many acts which come into force while selling or buying of the property such as, Registration Act, 1908  Transfer Of Property Act, 1882, and respective state laws (for example in Maharashtra, The Maharashtra Co-Op Society Act, 1960, Maharashtra Apartment Ownership Act, 1970) etc. Personal Laws also come under action in the case of the death of the owner and succession of the property. Here the due diligence process and the documentation review gets complicated by oneself. A layman may not be conscious of all these laws, and a transaction which looks easy can be invalid in the eyes of the law.

It is common for property purchaser to take opinion from people with entrusted interest, however, it is important to note that the opinion is based on the documentation review and thorough review of law and relevant regulations. Any erroneous decision can be a threat to the property ownership and money loss which is invested in the purchase of the property.

Not everything that looks fair and simple is actually that way and the same can be reliable with someone who has experience. There are many things from which a lawyer can protect you when dealing with property related transactions.

The main purpose for Title Search and due diligence is to get an answer on following questions:

1)   Is the seller is the authorized owner to sell the property?

2)   Does he or she have the rights to sell the property?

3)   Is the property free from all the kinds of charges?

4)   What are the restrictions on the usage of the property?

Get Your Property Registered

Types of Title Search:

Depending upon the type of the transaction, the property that is involved and the objective of the participants, a title search can be divided into two major categories:

Full Search: A full search is mainly done while giving a title certificate of the property in cases of sale, resale, long-term lease transactions and for transactions which involve procurement of financing by mortgaging the property. In a full search, the search concerning the status of ownership of the property is mainly conducted for a period preceding thirty years or more years from the date on which the seller in question came to obtain the property.

It also includes a broad search of all features relating to the history of that property such as the status of disputes relating to the property, status of encumbrances over the property, the status of compliance of such applicable regulations relating to the property in question.

Limited Search: A limited search is basically conducted in the transactions where the property is taken on lease for a short term which is mainly under 13 years. In such cases, the time span for which the preceding ownership of the property is traced is mainly restricted to fifteen years or less than that from the date on which the present owner of the property came to obtain the property.

So, to avoid all these problems, conduct the property title verification before buying the property. 

Why is it important to perform a property title verification before buying any property?

1076

Property purchase in India it is necessary to do a property title search to verify the property you are purchasing carries an impeccable title and is free from all kinds of charges. As the budget involved in the purchase of the property is high, it is always suggested that all the property buyers get a title search of the property gets done by a qualified lawyer or expert.

Thi article sheds lights on the document review and property title verification process. It is always recommended that approaching a lawyer or a legal expert to get the documentation verified and take the property title report to avoid any kind of ownership issues in the future.

The title search is thorough research of the property and review of all the property papers before investing, buying, selling, leasing of a property. It is a process where one is taking the reasonable and necessary steps and this may also include conducting the search in Registrar Office and reading through different Acts and Regulations.

There are various aspects to title search and can be varied from one property to another property, i.e, ready to buy, resale, under construction, redeveloped properties etc. There are many acts which come into force while selling or buying of the property such as, Registration Act, 1908  Transfer Of Property Act, 1882, and respective state laws (for example in Maharashtra, The Maharashtra Co-Op Society Act, 1960, Maharashtra Apartment Ownership Act, 1970) etc. Personal Laws also come under action in the case of the death of the owner and succession of the property. Here the due diligence process and the documentation review gets complicated by oneself. A layman may not be conscious of all these laws, and a transaction which looks easy can be invalid in the eyes of the law.

It is common for property purchaser to take opinion from people with entrusted interest, however, it is important to note that the opinion is based on the documentation review and thorough review of law and relevant regulations. Any erroneous decision can be a threat to the property ownership and money loss which is invested in the purchase of the property.

Not everything that looks fair and simple is actually that way and the same can be reliable with someone who has experience. There are many things from which a lawyer can protect you when dealing with property related transactions.

The main purpose for Title Search and due diligence is to get an answer on following questions:

1)   Is the seller is the authorized owner to sell the property?

2)   Does he or she have the rights to sell the property?

3)   Is the property free from all the kinds of charges?

4)   What are the restrictions on the usage of the property?

Get Your Property Registered

Types of Title Search:

Depending upon the type of the transaction, the property that is involved and the objective of the participants, a title search can be divided into two major categories:

Full Search: A full search is mainly done while giving a title certificate of the property in cases of sale, resale, long-term lease transactions and for transactions which involve procurement of financing by mortgaging the property. In a full search, the search concerning the status of ownership of the property is mainly conducted for a period preceding thirty years or more years from the date on which the seller in question came to obtain the property.

It also includes a broad search of all features relating to the history of that property such as the status of disputes relating to the property, status of encumbrances over the property, the status of compliance of such applicable regulations relating to the property in question.

Limited Search: A limited search is basically conducted in the transactions where the property is taken on lease for a short term which is mainly under 13 years. In such cases, the time span for which the preceding ownership of the property is traced is mainly restricted to fifteen years or less than that from the date on which the present owner of the property came to obtain the property.

So, to avoid all these problems, conduct the property title verification before buying the property. 

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