What Is Title And How Is It Important?
Title Search Report is require for understanding the legal ownership right to the property. Investment in the property is one of the chief investments as many people spend their entire lifetime income on buying property. So Title of property is one the foremost concern that everyone faces at the time of buying a property. So it is very pertinent to get the title/property documents verified before purchasing property to save buyers from defective/fake title. A search report gives a buyer the confidence that he is undertaking a transaction with a genuine party.
As it has been witnessed in certain cases that law has presumed that it is lawful obligation of buyer to get the title documents verified so as to ensure genuineness of property title.
Why Is It Significant To Get Title Verified?
- To know that seller has legally entitled and has ownership to sell the property further;
- To verify that property is free from any kind of encumbrances or charge;
- To get himself saved from any kind of fraud/scam/forgery etc.
The Limitation Act, 1963 provides a limitation period of 12 years in case of adverse possession for private land while limitation period in case of land/right related to government is 30 years. So it is pertinent to get title verified in limited lime to avoid any kind of encumbrances related to property/title.
What Is Check-List For Title Verification?
- Prime and foremost thing to check while doing title search is to check any legal encumbrances or pending litigation with respect to the property title.
- To identify any mortgage that has not been paid off as most of the purchases by real estate companies are made through financial companies. Generally a Mortgage Loan is taken by real estate companies or property owners to raise funds to buy property, while putting a lien on the property being mortgaged.
- To check the classification of property from the Government records along with other important records to locate the property against the adjoining land. The documents need to be certified by the officer of the Land Records.
- To identify the use of land in question was whether to be use for agricultural purposes or for commercial or any residential purposes. In certain cases where there is any change in land use, consent has to taken from competent Government authority by paying appropriate government fee.
- To verify with land authority that there is no land acquisition proceedings pending with respect to the property/land in question.
- To check any change in relation between parties whose name appearing in title through marriage, divorce, etc.
- To check any change in ownership due to estate filing, transfer of property, death etc.
- To check historical account in case of chain of title deeds through a procedure under which the property has been transferred/acquired by recent owner.
- To get NOC (Non Objection Certificate) from co-owners in case of joint property.
- To check family tree and other required documents in case of HUF (Hindu Undivided Family) or an ancestral property, such as copy of will, succession certificate, probate obtained from Court, partition deed/ gift deed/settlement deed, etc.
- Court order/Decree in case of property being sold by official liquidator.
Frequently Asked Questions
1. How Banks Do Property Valuation?
Property valuation is done by banks by multiplying the built up area of the property with the cost of construction per square feet. This is the typical method followed by banks.
2. What Do I Need To Check When Buying A Real Estate Property?
Title of the property, Sale Deed, Encumbrance Certificate, Occupancy Certificate, completion certificate, Building Plan Approvals and Possession Certificate, latest tax receipts etc.
3. Can I Do Title Search By Myself?
Yes, anyone can do title search. But it is complex process and time consuming as one need to check record of property from government department and extract relevant information. SO it is always recommended to take professional help for the same.
4. What Is Title Defect?
Anything which encumbers the owner’s right in the property or which cause the owner to lose its right over property..
5. How Long Does It Take To Get Tile Verified?
Time consume varies from case to case. Generally it takes around 24 to 72 hours depending on nature and complexity of the matter.