Verifying the legality of a property’s title is one of the most important steps when buying a property in India. Ensuring that the property has a clear and legal title can help you avoid future legal disputes and financial losses. Here’s a detailed process on how to verify the legality of a property’s title in India:
1. Check the Title Deed
The Title Deed (also called the Sale Deed) is the most crucial document when verifying ownership. This document proves that the seller has legal ownership of the property and has the right to sell it. To verify the title:
- Verify the Seller’s Name: Ensure that the name of the seller on the Title Deed matches the seller’s identity and all previous documents.
- Chain of Ownership: Ensure that the title deed is a part of a continuous chain, and there are no breaks in ownership. This means checking that the property has been lawfully transferred from one person to another over the years.
- Registered Deed: Confirm that the title deed is registered with the local sub-registrar office and that the document contains all relevant registration details.
2. Obtain Encumbrance Certificate (EC)
The Encumbrance Certificate (EC) is a crucial document that shows the history of the property’s transactions. It confirms whether the property is free of legal dues or mortgages.
- What EC Shows: The EC will show any loans or liabilities against the property, as well as previous owners.
- Where to Get It: You can obtain the EC from the local sub-registrar office or through the online portal of the concerned state’s registration department.
- Importance: If there are any encumbrances, such as pending loans or disputes, it will be reflected in the EC, and you may need to resolve them before proceeding with the purchase.
3. Check for Pending Liabilities
- Property Loans: Ensure that the property does not have any outstanding loans or liabilities. Verify this through the EC and by asking the seller for documents that confirm any loan balances or pending financial obligations related to the property.
- Tax Payments: Verify that property taxes are up-to-date. The property should not have any unpaid property tax or municipal dues.
4. Confirm Property Approvals and Permits
- Building Approvals: If you are buying a property that involves construction (such as a new flat), ensure that the builder or developer has the proper building approvals from local authorities, such as the municipal corporation or development authority.
- RERA Registration: For newly constructed properties, check if the project is registered with the Real Estate Regulatory Authority (RERA), which ensures transparency and compliance with regulations.
- Land Use Conversion: If the property is agricultural land, ensure it has been converted into non-agricultural land, which is required for urban development or construction.
5. Check the Land Title
- Freehold vs. Leasehold: Verify whether the property has a freehold or leasehold title. A freehold title means that the buyer owns the property and the land outright, while a leasehold title means that the buyer has the right to use the property for a fixed period, after which it returns to the landowner.
- Land Ownership: Check the land records to ensure that the seller is the rightful owner of the land. In rural areas, land records can be checked at the local revenue office or online portals, such as Bhulekh (for land records in various states like Uttar Pradesh, Odisha, and others).
6. Verify Seller’s Identity
- ID Proofs: Ensure the seller has valid identification proof (such as Aadhar Card, PAN Card, Passport, etc.) to match with the information on the title deed.
- Power of Attorney: If the seller is acting through a Power of Attorney (PoA), check the PoA document and confirm that the person executing the transaction has legal authority.
7. Search for Litigation or Disputes
- Court Records: Check for any ongoing or past litigation related to the property. You can verify this by searching through court records in the local civil or district court.
- Family Disputes: Be cautious if the property is inherited. Ensure that all legal heirs have signed the necessary documents, and there is no dispute regarding ownership.
8. Check for Encroachments
- Verify Boundaries: Ensure that the property does not encroach on any public land or private land. Get a survey report of the property, if necessary, to ensure it is properly marked and does not infringe on neighboring properties.
- Local Authority Verification: The local municipal or development authority can confirm that the property is not subject to any encroachments.
9. Verify the Seller’s Authorization (For Developers)
- Developer’s Documents: If buying from a developer, check their title to the land (or the builder’s development rights) and the construction approvals. Ensure the builder has the legal right to sell the property and there are no legal issues.
- RERA Registration: If buying a property in a project, confirm that the project is registered under RERA. RERA ensures that the project has the necessary approvals and is compliant with regulatory requirements.
10. Cross-check with Local Authorities
- Municipal Corporation: Verify the property’s legality with the local municipal or development authority. Check the property’s records for taxes, approvals, and any pending issues.
- Zonal Laws and Restrictions: Ensure the property complies with local zoning regulations, land-use policies, and any other regional restrictions that may affect the property’s usage or development.
11. Consult a Legal Expert
- Real Estate Lawyer: It is highly advisable to consult a real estate lawyer who can thoroughly review all the documents, titles, and legal aspects. A legal expert can help you verify the legitimacy of the title and prevent any legal issues from arising in the future.
Conclusion:
Verifying the legality of a property’s title in India involves thorough checks and research, ensuring that the ownership is clear, the property is free of encumbrances, and all legal approvals are in place. By following the above steps and working with legal experts, you can significantly reduce the risk of purchasing a property with legal complications.