Documents to be verified before buying any property
 Before buying any property or land in India, following legal documents or legalities should be checked.
1.Title deed / certificate of title of the land
When you are planning to buy any property, first and foremost
thing is to check down the title deed of that property. The property
title deed is the legal document which proves the ownership of property.
The title deed presents certain rights and freedom to the person who
holds it and such deeds are required where person wants to transfer his
ownership.It includes description of property along with the person’s
name that holds it and multiple persons can be listed as owner as well.
An official seal is used to point out that the deed is recorded
officially and normally it is signed by an owner(s) and a witness who
may be a regional officer or a clerk.
So as a buyer you have to ask for original deed not a Xerox
because sometimes the seller might have taken a loan and given in the
original deed.
You should make sure through the title deed that the property is
in the name of solely a seller and no one else is and he has all rights
to sell it. The best practice is to get reviewed the property deed by an
expert lawyer just to make sure that there are no loop holes.
As a good buyer you may also ask for a previous deed and get reviewed by a lawyer.
2. Encumbrance certificate
The encumbrance means any liabilities or charges created on any
property in terms of any security of any debit by property owner which
is not discharged as on date. It might be held as security against bank
loan against property. Encumbrance certificate is necessary to check the
title clearance of property when buying any property. This legal
document is issued by registering authority. Government authorities and
financial institutes like bank is requested encumbrance certificate for
the period of 13 years but you can ask for up to 30 years as well to be
checked. Then after if you still have any doubts, you can get possession
certificate of ownership for a particular land from village office.
3. Torrence Plan
Torence plan is detailed plan of the property which is done by a
licensed surveyor. All the measurements details in it are accurate in
terms of length, width, borders etc. this plan is necessary for some
specific areas only.
4. Pledged land
Many property owners take bank loan by pledging their property. So
check they have paid the entire amount due when you are going to buy
that property. If they have paid entire amount due then bank has issued
them a “Release certificate”. Ask for the same as this release
certificate is necessary whenever you want to take any loan in future.
5. Property Tax receipts
Property taxes are first charge on property that is paid to
government or municipality. So you have to make enquiry in government
and municipal offices to ensure whether all tax has been paid as on
date. You can ask for latest tax receipt from owner. In this way you can
check whether any notices or requisitions are issued on property or any
tax due on the property. While you are checking property tax receipt,
there are two columns in it. One is for owner’s name so verify it and
other is for tax payer. In some cases, the tax receipt is not with
owner. In such cases, you should contact village office with the survey
number of land and confirm the original owner.
6. Measurement of Property
It is prudential to measure the land before registering any
property. In this way you can ensure the measurements and borders of
land are perfect and accurate. You should get done it with authorized
surveyor as you will avoid many problems coming in future. For the sake
of your knowledge you should take surveys sketch from survey department
and do ensure the accuracy.
7. Owner or Owners
In some cases, it’s possible that there will be more than one
owner of property. In that case get No Objection Certificate or Release
certificate from other owners.
8. NRI owner
An NRI can also sell his property in India. For this he gives
Power of Attorney to third person whom he give rights for selling the
property on behalf of him. The most important thing is to ensure the
Power of Attorney is witnessed and is duly signed by an officer of the
Indian Embassy. The Power of Attorney signed by a notary public has no
legal support I such a case.
9. Deed/ Sale Agreement
After sorting out all the things whether financial or any other
between buyer and seller, it’s now turn for advance payment and
agreement between them. The agreement is done on 5o Rs stamp paper. It
includes the final actual amount, advance payment, time limit to pay due
amount and how to pay in installments, time indication when the actual
sale should take place. It also includes what to do to cover loss if one
of buyer or seller makes default. This ensures that the seller does not
defer cost in any case after finalization and he doesn’t sell to
another party meanwhile. This agreement can be done by an expert lawyer
and signed by both the parties with two witnesses. After doing this
agreement, if one from both parties makes any default then another one
should take legal action against him.
10. Property Registration
All property sales will be held illegal unless the transaction is
by means of a sale deed duly stamped and registered. After collecting
and checking all the documents, you have to register land/ property at
the Sub-Registrar or the SDM (Sub District Magistrates) of your area.
Mail: sourav@lwxrete.com for clarification and advice.
(Source-Lawyers club)
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