Property's Document(s) Verification

It is very necessary to verify property documents before going to purchase any immovable property anywhere in India including Bengaluru. Both the title deeds and the subsidiary documents in respect of the title of each and every immovable property are to be verified by an expert in this regard before entering into any contractual agreements or obligations to ascertain whether the property intended to buy is good or free from all kinds of encumbrances, such as, minor claims, litigations, and maintenance, to name just a few.

Title Deeds:

The title deed or deeds, whichever term is referred to name it, it is the most important and main document by which possession or ownership of a property has been changed from one person to another or others.it shall not always be a sale deed but anything though which property transaction has to be made, for e.g. lease deed, mortgage deed, gift deed, or release deed, etc.

The title deed is like a foundation of a building and if the foundation is not strong enough to stand up on its own base, further construction of any number of floors built up on it will be in a risk at any time in future. We can see one title deed or a few number of title documents for an immovable property, but, it is pertinent to take note that even though there are several number of title documents for an immovable property, there shall be only one title deed for a property at a point in time and the rest of other title document or documents shall be in series to a present one which is counted as the original title deed of an immovable property.

The title deed shall not always be one in number, but there may have two or more at the same time for an immovable property depending on the kind of transactions by which change of ownership of the property had been taken place earlier amongst its erstwhile parties. But, remember one thing that, if the title deed or deeds are one or two or more, every title deed or deeds shall be current and connected to each other in case the title deeds are more than one to a certain immovable property.

Series of Title Deeds:

If someone goes and scrutinizes the available title documents presented by a present owner of an immovable property, the history of the derivation of title by the present owner can very well be ascertained from that series or chains of previous title documents brought out by the present owner pertaining to his immovable property. The number of past title documents varies from one immovable property to another and it is purely depended on as to how many times owners had changed hands of his or her property in the past from time to time over a period from one to another. These earlier title document or documents pertaining to an immovable property are known as mother deed/s or parent deed/s.in brief, it is the title document or documents just prior to the original title deed or deeds. 

Tracing of Title Deeds:

There are four types of title, broadly, but for practical convenience, title is divided into two types, original and derivative. The example for the original title is title by succession and for the derivative title is purchase.

Subsidiary Documents:

Verification of property documents, also includes verification of subsidiary documents relating to an immovable property. It is part and parcel of the whole process of analyzing, reviewing and also calls for any additional required documents from the concerned party for suiting a better title to a potential buyer to whom acquisition of property takes place once in a lifetime. A lawyer's duty is to safeguard the interest of his client.

A subsidiary property document can be anything except the present title deed or deeds of an immovable property, such as, tax paid receipt, mutation extract, khatha certificate, etc. When we say subsidiary property documents, it mainly refer to the revenue documents of an immovable property.

In searching of the title of a property, these subsidiary documents are also play a pivotal role which may sometimes be a link connecting one document to another in order to arrive at a correct conclusion of events of sequence and in chronological order.

Allied Documents:

As long as an immovable property of a site or a plot is laying vacant, it doesn't require a building sanctioned plan, commencement certificate, completion certificate, etc. But, the moment its owner plans to construct a house or an apartment complex on the very same site or plot, all these documents emerge and come into existence at once and as far as the said vacant site or plot is concerned those documents were once non-existent and irrelevant and without which the title of the said immovable property was good and perfect.

And, as far as an immovable property of a house or a flat is concerned, building license, plan sanction, occupancy certificate, etc., are very much important like the title and the subsidiary documents and all the above are come under the allied documents and in the absence of which title of a house property or an apartment complex shall not be perfect and valid.

The allied documents which were not relevant to an immovable property of a site or plot when the same was remained as vacant, but, get relevance once the said property's transformation from its earlier form (site or plot) into a new form (house or flat) and a allied document or documents which are widely ranged from panchayat's building license to airport authority's NOC (Height Clearance).

Conclusion:

A potential buyer will always be in search of a new and good property and after his or her month long effort, if a property is identified as suitable and ideal, what shall be the next course of action be taken by as a first time purchaser to proceed further in dealing with the property on a layman's point of view. Of course, to give advance, definitely, but, what type of advance. Token, advance amount or earnest money.

It is not advisable to give beyond a refundable token advance to a seller by a buyer unless and until he or she gets a legal certificate/opinion from a competent expert in this respect. The sign of a legal opinion may not be always green to go further, but if the signal is red, wait until it turns green and proceed further by signing a sale agreement or contract after paying a substantial amount of consideration price as advance or earnest money to the seller, otherwise, you may be hassled from pillar to post to get back your hard earned money from the seller or anybody representing through or under him or her through mediation or by well-wishers or in a court of law.

Last but not least that people are ready to give hundreds and thousands and lakhs of rupees in the name of bribe, but the same people are not showing willingness to shell out a few thousands of rupees for their property documents verification which is considered as a reasonable cause and the first step in any kind of property investment. Buyers have no botheration about losing their money and they do pay scant attention to know their property appraisal report before venturing into a property investment. What may come they will go ahead with their plan of buying a property merely on trust believing their agent, broker, middleman and finally seller as well without knowing whether the property they are going to own is good for their future investment and if at all it is a defective title property they will be losing lakhs or crores of rupees for saving a few thousands of rupees as legal fees towards their due diligence of property documents verification.

 

Subash M R  
on 26 February 2018
Published in Property Law
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