What Are the Risks of Buying Property Without Proper Verification?
You have finally decided to purchase a property. But what if, though everything seems to be fine. The property is looking good, the seller has the documents and you also have the registrar with you. But what if title of the property is not in order?
You might hear these questions only after you have purchased the property. Questions from owner, due payment, loan against property, family members objection, Fake documents, Unauthorized construction, Possession problems, not able to sell and so on. Just because your sale deed has been registered doesn’t mean you are out of all these troubles.
Property verification might come in handy if you are planning to purchase a property in Delhi NCR, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad or anywhere else in India. To know what all troubles you might end up getting into before you pay a heavy amount.
Verification of the property will help you know about the previous owner’s chain, documents, loans on property, permissions taken, possession of the property and lot more. You will know everything about the property which you are going consume. And yes, if the seller has right to sell you the property.
Many people rely on broker/seller/builder to purchase a property. But you should always know about your own paper work. And the work should be done by checking the legal aspect of the property.
Advocate BK Singh can help you understand your documents. Whether you want to buy your residential/commercial/industrial property or for investment purposes.
Why Could Buying Property Without Verification Become a Problem in Delhi NCR?
The Buyer may face various problems like multiple ownership of the property or loss of money or even land by legal hassles.
A property may be a Free hold property or Lease hold property or Builders property or Authorities property or Flat or inherited property or Joint property or property with Power of attorney / old documents provided by the Seller, in Delhi NCR.
The property may be visually okay but when the Buyer checks the documents there might be a small flaw.
The Seller might have only possession of the Property but not a marketable title. There can be a mortgage on the Property or any other claimant to the property which is unknown to you at the time of the sale/purchase.
That's why it's recommended to do a property verification before putting your money at stake.
It is always beneficial to seek the services of an Advocate when you are purchasing a Property for yourself or investing your business/family money in a Property.
What Should a Buyer Know Before Purchasing a Property?
Quick Facts
- Always look into papers which deal with the property which you are buying.
- If a paper is registered it does not necessarily cure all title issues.
- Try to establish that the seller is indeed the person in the sale document.
- Trace through as much title as possible if available.
- Past sale deeds may be important as well.
- If it is an inherited property look at the succession papers also.
- Joint owner ship can cause some issues so find out about all the co owners.
- Power of attorney should be taken seriously.
- Look for any encumbrance on the property.
- If there is any mortgage it must be looked into.
- Dues outstanding can cause hassles while buying a property.
- See who has the possession also.
- Mutation is only a revenue record so don't rely on it completely.
What Does Property Verification Actually Check?
Property verification involves scrutinizing the property and the sellers claim on it with due documents and process of law prior to buying it.
It will vary upon the kind of property you want to verify. It could be as simple as a residential flat or might need more in-depth checking if its a property received through succession, allotted plot from an authority, commercial property or apartment from a builder.
Checking the available documentation regarding title of property. Previous title documents, seller documents, concerned authority records, encumbrances (if any) related info, possession and sale deed documents.
This does not mean to scare a prospective buyer but help them buy with knowledge.
Advocate BK Singh can help you know what all documents are present in your desired deal and what more is required.
What Legal Framework Can Apply to Property Verification in India?
There are various laws and acts which can be related to any sale purchase of property. Not only one property verification act can cover all this.
Transfer of property act 1882 comes into picture when we are dealing with transfer of immovable properties. And the Registration act 1908 deals with some of the key requirements. You could have Stamp Acts, Succession laws, Municipality laws, Development authorities laws, Tenancy laws and State laws applicable for any real estate transaction.
If you want to check the title of a property. The age of the property might play a role. Buyer would need to know how the property passed from one person to another. If the documents held by the current owner justify the ownership.
Registration is a requirement for the transaction. But one must not rely solely on registration.
This could vary based on the type of property as well. Whether its a freehold, leasehold, ancestral property, joint owners, authority allotted property or under a builders project.
Who Should Consider Professional Property Verification?
Are you looking to buy a house for your family?
When buying a house most people spend their life's money or are committing to pay for a number of years. Its always advisable to get legal opinion on the paperwork before investing such a huge amount.
Are you looking to buy a property as an investment?
If you are an investor then you would want to know about your current purchase and future transferability of your property and paper work.
Buying from an individual seller?
It is wise to check the papers of the person selling to you and past transactions of that property.
Buying a property from inherited property?
There could be various questions related to succession and family ownership and papers when it comes to inheritance.
Buying in Delhi NCR?
You might have heard this many times. Whether you are buying in Delhi, Noida, Greater Noida, Ghaziabad, Gurugram or Faridabad each have its own authority and record systems. So yes legal opinion would come in handy.
What Is the Property Verification Process?
It generally starts with identifying what the deal is about and gathering all the documents you have access to. Whether it is the seller, builder or any other authority.
Documents are cross verified against each other. Chain of ownership, transfer papers and whatever other documents may help. All of this will be considered as a whole.
Additional documents may need to be obtained if anything seems amiss.
Older properties may call for a deeper look into its chain of title. Property which was inherited would need additional documentation relating to succession. If its a builder property it may need documents about the project/allotments etc.
After reviewing these documents you will have a better understanding of if you want to proceed further, clarify certain things or negotiate better terms or get further legal help.
What I do is point out any discrepancies that can hurt you legally when buying a property.
If you're already in talks to buy a property we can step in when needed. Instead of getting a lawyer once your registering or fighting in court.
Which Documents May Be Important for Property Verification?
Depends on the property. But it can include:
- Title/Sale deed current
- Past sale deeds of the chain
- Sale Agreement if any
- Mutation/revenue records if any
- Property tax receipts
- Records relating to any encumbrances
- Documents proving possession
- Document of allotment / Lease (if any)
- Permission from authority (if any)
- Building plan sanctioned (if any)
- Completion/occupancy certificate (if any)
- Succession Certificate
- Release Deed (if any)
- POA (if any)
- Agreement between builder and buyer for that project
- No dues from bank/mortgage (if any)
- ID proof of seller
- Any other documents which are required with respect to that property.
Every property is different so your lawyer will know what documents are required once he knows about the deal.
How Long Can Property Verification Take?
No amount of time that is legally required to complete the task on all properties.
If its a simple sale there may be less documentation to look through. If it's a old property with many sales or inheritances or authorities and missing information could take longer.
You should keep in mind that this is just for you to look over your legal documentation. It may take longer if your waiting on information from authorities or other parties.
Its best to start the process before you commit any money.
When Should You Consult a Property Lawyer?
It is always advisable to get some form of legal guidance when buying or paying large sums of money if any of the following apply;
- The chain of ownership goes back many years.
- Seller does not have all the paperwork.
- Property may be inherited.
- More than 1 person from a family is on the deeds.
- Property is mortgaged or was bought using a mortgage.
- There is a power of attorney.
- Property is authority allotted or on leasehold.
- Queries with building work or permits.
- The seller wants you to proceed asap.
- Any disputes/notifications have been highlighted.
- The property is selling for much less then what its worth.
The sooner you receive advice as a buyer the more options you have.
How Can Property Lawyer Delhi and Advocate BK Singh Help?
Property Lawyer Delhi Advocate BK Singh deals with all matters related to property papers. Title search, Due Diligence on Property transaction etc.
It's not to complicate your buying process but to let you know what all papers you have and what should concern you.
You might require a lawyer's help to go through the paper work, title search on property, missing paperwork etc. Depending on the property what you will need assistance on.
When you are buying a property in Delhi NCR or anywhere in India where you may require professional help in case there is high stake involved. Or when you have questions regarding your paper work.
If you want to buy a property and need help finding out if you have proper paper work to proceed with your transaction Advocate BK Singh can be of help to you.
What Questions Should You Ask Before Buying Property?
1. Should I verify documents before paying token amount?
Yes. Get a lawyer to verify ownership records, title documents, existing loans and approvals before you pay a token amount. Clarify refund or forfeiture terms too since it might be difficult to recover an advance payment later.
2. Does a registered sale deed make it a clear property?
No. While it is one important document, a registered sale deed alone does not guarantee that a property is free from legal disputes or restrictions. Ensure prior ownership records, encumbrances, approvals and other property-related documents are verified.
3. Can my lawyer verify if the seller really owns the property?
Hire a lawyer to review sale deeds, prior title documents, revenue records and other supporting documents to verify the sellers ownership claim. Keep in mind that title verification is only as good as the documents provided and undisputed claims of all lawful heirs.
4. If mutation is done in the seller's name, can I say he owns the property?
Not exactly. Mutation is usually an entry made in revenue records or municipal council records. Go through title deeds too along with chain of ownership and death certificates(if inheritance is involved) and check for any ongoing property disputes.
5. What about property with bank loan?
Any property with an outstanding bank loan needs to be checked for mortgage/charge and outstanding liability. You may need to verify certain documents from the lending institute and ensure the transaction clearly mentions terms for release or transfer.
6. Should I verify more documents if its an inherited property?
Yes. Verify wills and succession documents, death certificate(if available), family settlement agreement if any along with past transfer records of inherited property. You would also need a lawyer to verify if other legal heirs of the owner have claim to the property or not.
7. Is it safe to buy property sold through power of attorney?
Powers of attorney grant someone the right to represent an owner. Get your lawyer review the validity, limitations, and legality of the power of attorney since it does not in itself transfer ownership of the property. Ensure proposed sale transaction meets all legal requirements too.
8. My seller doesn't want me to verify his documents. What should I do?
The choice is yours but if someone is selling a property and doesn't want you to verify their documents its a huge red flag. You should always ask to see relevant title documents and transaction records before paying any money or signing an agreement. If necessary consult a lawyer to help you obtain the documents.
9. Can Advocate BK Singh help me verify property documents?
Yes. Advocate BK Singh can verify ownership documents, sale deed, history of transactions, encumbrance certificates and other relevant documents before you buy a property. Document verification can point out possible legal issues but an accurate opinion is subject to the documents provided.
10. Will document verification ensure there's no litigation in future?
Document verification cannot provide a 100% guarantee of no future litigation. But verifying title documents, encumbrances, relevant approvals and outstanding litigation can reduce the risk of future problems. You can make a more informed choice but you cannot rule out the possibility of litigation completely.
Final Thoughts
Always cross check your papers before buying any property. It may be your area, your price, structure or whatever.You never know its paperwork also matters a lot.
If you consult any expert and get it verified within a few hours before you spend your big money. You will know about the seller's papers whether from where he had purchased it and is there any litigation pending against it. It would help a lot if something suspicious is there with the property that has been changed hands too many times or its under family member possession. Could be that some government body owns it or something else related to the property.
If you want to cross check your property before buying in Delhi NCR as well as India you can consult Advocate BK Singh.
Thinking of buying property? Don't let "Litigation" teach you lesson that you should have verified your papers.
