What Are the Essential Property Documents Every Buyer Should Verify Before Purchase?
Purchase of property is huge financial decision. Beautiful flat house, plot, commercial unit or investment property can look great on paper and still have title risk, ownership risk, mortgage/litigation/documentation risk.
How do you know for sure that the property you’re buying is risk free?
Don’t just take your seller’s, broker’s or sale deed’s word for it. There could have been dozen of sale deeds prior to you, succession case, bank loan on property, family members with power of attorney on property or a dispute or any such records about the property of which you are unaware of. If any one of the above applies you could face problems down the road.
Property document verification involves checking all of the documents related to ownership of a particular property. You want to ensure all these are done so you can detect any flaws there may be prior to your hard-earned money being handed over and it becomes difficult to back out.
Property document verification is extremely beneficial if you’re looking to purchase property in Delhi NCR or any other metro city in India as you may encounter many documents to verify. Whether these documents be from a builder or a previous sale.
Contact BK Singh Advocate / Property Lawyer Delhi if you are planning to buy property. He can advise you on what documents need to be checked and whether anything seems suspicious about them.
Why Should Buyers Verify Property Documents Before Purchase?
Importance of Document Verification lies in the fact that ONLY because a seller produces documents showing that he owns a property, it DOES NOT necessarily mean that the property is risk free.
Disputes regarding a property arise most of the times when money is already paid or possession is taken over or even registration is done in your name. You might end up paying a lot of money to get out of that mess which might even lead to prolonged litigation.
Doing a thorough document verification will help you identify if the property you intend to buy has any problem like -
- Dubious Ownership.
- Dodgy Title.
- Encumbrances on the property.
- Inherited property.
- Property disputes among family members.
- Illegal properties.
- Mismatch in property description.
- Properties not approved by authority.
- Resale of property.
- Sale through Power of Attorney.
The above list of documents may vary from property you intend to purchase be it Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad, Meerut etc.
Is the Sale Deed Enough to Prove That a Property Is Safe?
Sale deed should not be treated as a holy grail once it's get registered for any problems related to the property.
Delve into the history by asking for previous sale deeds and how the property was held by current seller. This may also include checking out any previous property if current property was sold by succession, partition deed, gift deed, family settlement or anything else.
Some of these issues may not get resolved post registration of the property.
Buyer needs to know what happened before his present title was born.
BK Singh Advocate can help you with this while purchasing the property.
What Is Title Verification and Why Does It Matter?
So you know title will pass correctly to you and that your seller has marketable title.
This may include previous owner's deeds of conveyance, will's, liens ect. anything that pertains to said real estate.
Just because something looks good, may not be good enough to accept if there are missing previous owners.
If your seller inherited the property you may have to go back even further and look at who their laws of succession were and what paperwork they used.
Which Laws Are Relevant to Property Document Verification?
Can fall under many laws and records. It depends on your scenario.
If you're selling an immovable property, then it will come under the Transfer of Property Act 1882. Specifically look at section 54.
Registration of instruments falls under Registration Act 1908. You'll find various property related documents fall under this act.
It can also fall under laws such as succession, stamping, development acts, local authority rates and records, Revenue records. If your buying into a Real estate project, then documents will have to follow RERA 2016 as well.
Depends on the type of property and transaction. There isn't 1 set of documents that will cover all properties.
Who Should Get Property Documents Verified Before Buying?
Verify Property Documents Before You Buy – Advisable for all.
Well almost all property buyers that are purchasing a home with enough savings and/or bank financing should consider verifying the property documents.
Should First Time Home Buyers Verify Their Documents?
Yes they should. Many first time home buyers simply trust their broker/builder/seller. Or they may not even know what documents to verify for their property.
First Time home buyers should have someone help them verify the documents they are being given. Only then will they know if these documents relate to the property they are about to purchase.
Do Property Investors Need To Verify Documents?
Yes they should too. Your investment property may have had many owners in the past. Or maybe it has plans for development, lease agreements, commercial rights etc.
Just because you found a good bargain on price shouldn’t be the reason you’re buying a property without verifying the documents.
Do NRI’s Need to Verify Their Property Documents?
Yes, verifying documents as an NRI buyer is even more beneficial. Because hiring someone to help you look over these documents would make sense. Seeing as how your not located in India.
You would want to hire someone to look over the sale deed and verify who is selling you the property. Also ensure there are no transactions made on that property.
Hire a consultant to help answer some questions before you buy that dream property.
How Does Professional Property Document Verification Work?
First you want to become familiar with the property and transaction you are working on. Once you have compiled all deeds or documents showing ownership, review them to make sure they all agree. Name of seller, legal description of property, size of property, boundary lines, etc. Look at all recorded transfers as well.
Depending on the deal you may want to look at other records to see if you can substantiate the chain of ownership.
Liens, death, power of attorney, zoning/building permits, real estate tax or open permits/issues.
After you have finished reviewing ask yourself, what can I prove to my client regarding this transaction. What are the red flags. What should they research before closing.
I'm not trying to teach anyone how to litigate against someone. Just arm the buyer with info they can use when purchasing a home.
What Documents Should a Buyer Keep Ready for Legal Review?
Buyer should provide all documents/paper whatsoever he has received from Seller / Builder / Developer / Broker . Buyer should NOT cherry pick documents he wants me to see..
Following is just a few documents which may help in Legal Audit process:-
- Sale Deed/Conveyance of the property you currently own.
- Previous Title Documents.
- Any Agreement to Sell.
- Mutation Record / Khata extract .
- Property Tax paid receipts.
- Building Plans which are approved.
- Completion Certificate/ Occupancy Certificate if available for project.
- Allotment letter & Possession Letter(if any) for Projects.
- Documents for RERA Projects(if registered under RERA).
- Will/Probate/Succession Documents if property is inherited.
- Power of Attorney if someone has a Power of Attorney document from Owner.
- Loan closure/ release documents if property was mortgaged for loan.
This list is not exhaustive and may vary from case to case. More documents you provide, better will be the legal audit I can perform for you.
What Property Document Mistakes Should Buyers Avoid?
Buyers care about 3 things most of the time. Price, location and interiors. They seldom bother about what papers they put their signatures on. It’s after you handed over a token that they scramble about finding it.
Avoid this unnecessary stress on yourself.
- Trusting what the other party says
- Verifying only the last sale deed
- Skipping previous documents
- Mutation is not proof of you being the owner
- Inquiring if there are any charges or not
- Accepting a Power of attorney and being unaware of what it permits.
- Succession related disputes of any sort
- Difference in mentioned area, limits and survey number.
- Myth that registration RECTIFIES everything.
- Giving away a good amount of money and then beginning your due diligence with your first question.
Always verify this beforehand.
Can Property Verification Protect Buyers From Every Future Dispute?
No lawyer is going to sit down with you and say, "You will never have a problem with this property."
Doing legal due diligence is about identifying as many issues as we can find by way of researching information we can obtain. Issues can arise because of facts not disclosed or just situations that occur following closing.
Just remember that legal due diligence is there for the purpose of lessening those risks.
When Should You Hire a Property Lawyer Before Buying?
Get an attorney to review prior to purchasing/payting(a lot of $). Okay, so either one of these apply to you:
- chain is lengthy
- home was inherited
- family members involved
- power of attorney
- seller has notified you there is a loan against the property
- property has been flipped numerous times
- home is under construction
- you can't get previous docs from seller
- home description doesn't match all documents
- its your life savings/investment
You should always have your attorney pull the title prior to buying. That way you know what your exactly getting into.
Why Hire BK Singh Advocate for Property Document Verification?
NEVER experiment when you are buying property ask someone to read you your documents.
At BK Singh Advocate / Property Lawyer Delhi we provide property related legal services. Researching documents, Title issues, Buying/selling property queries.
If you need someone to read your documents over before you move forward.
Our job is simple we will not bombard you with every information that you don’t need to know. We will ensure you understand your documents, chain of ownership and if there are any obvious loopholes and questions.
Sometimes when you buy a property in Delhi NCR, Noida, Greater Noida Ghaziabad, Gurugram, Faridabad or anywhere across India you may require a 2nd Opinion on a property law matter.
Visit our Property Lawyer Delhi website to learn how you can get legal help with your property.
Give us the documents you have and We'll let you know where you stand.
What Can a Property Lawyer Help You Check Before Purchase?
Your lawyer will take a deeper look at the sale in regards to any risks when purchasing.
Title, chain of ownership, sellers authority, any encumbrance issues, succession, registering and any defects in the sale will all be reviewed.
They will also let you know if there is any additional documents you need to obtain.
Giving you knowledge to buy with confidence.
Frequently Asked Questions About Property Document Verification
1. What are the documents i should check before buying property in India?
Atleast one should check current ownership paper and previous few title papers. Some times you may also need mutation papers, tax papers, approvals, encumbrance papers, succession papers, POA papers or project papers too. It totally depends on your property and study of the case.
2. My property is having registered Sale Deed. Is it safe to buy?
Sale deed is one of the ownership paper we look at while doing property title check. But sometimes you may have to see previous owner history and other details. BK Singh Advocate can advise you for your documents before buying property.
3. How can I check my Title before buying house.
You should verify documents and understand seller’s claim on property. If any legal issues are visible, they will be identified during document check process. You know about them before making payment to seller or registering documents.
4. Will Mutation paper prove that property is in my name.
Mutation papers are good to check with concerned authorities if your record is shown there. Depending on property it can be used as a revenue ground. But every times mutation cannot be considered as ownership proof. You should see ownership papers to confirm title.
5. Do NRIs also have to verify documents before buying property.
Yes NRIs can also use property verification service by engaging an advocate. No matter where you are based its good to verify property before paying any amount to seller.
6. What if the seller has no earlier documents of the property?
If seller is not having previous papers of property, try to see you vary from buying. Why he is not having those documents? Can he prove ownership title in other method? Consult Advocate like BK Singh what papers he needs to verify before you move forward with transaction.
7. If i register a property, does that mean i have clear title on property?
When you register a property it only means that paper has been registered recently and is valid. But due to certain reasons paper can be still defective even if you have registered. Its best to check with past records of property before buying.
8. Can i engage a property lawyer to verify my documents before signing Agreement.
Yes you can. Verify your documents before signing Agreement to Sell. Once you sign agreement you will less flexibility to look at your documents. What can you verify? Only thing that is given to you.
9. Will i require property lawyer if i am buying a flat.
Yes if you are buying flat from builder or if its worth high. There are many documents which goes along with buying a flat. Your lawyer can verify them before you buy a flat.
10. Why should i contact BK Singh Advocate to verify property documents.
Property transaction deals with huge money. If BK Singh Advocate/ Property Lawyer Delhi verify your property papers. You will be know about any issues with property and take action. So now you can complete your property transaction with correct knowledge.
Final Thoughts
Yes. I would say. Always verify property documents before you purchase a property.
Property may be good. Seller may be honest. Price may be fair. None of them cannot replace you having right knowledge about property matters.
Advocate BK Singh provides help to all such people who want to purchase a property in Delhi NCR or anywhere else in India and seek help regarding their property documents and any issues if they have.
So if you want to know what’s really in your property. You can seek help from Property Lawyer in Delhi and get rid of all your property related legal stuff.
