Why Should a Buyer Check the Chain of Title Before Purchasing Property?

Purchase of property not only demands you invest a large sum of money but also tie yourself up for long years. Owning a property doesn't imply that if your current paper looks legit then the title would be clean.

There can be numerous deeds transacted in the past like Sale Deed, Succession, Partition, Gift, Relinquishment, Decree, Power of Attorney, Lease, Mortgage and many more.

So basically what does title verification mean?

That the seller is capable of producing a clear & uncontested chain of title until the current deal.

This will help those who intend to purchase property in Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad and other NCR regions.

What Exactly Is a Chain of Title?

Chain of title refers to how title was transferred from one person to the next all the way back to your seller.

There may have been numerous owners prior to your purchase. Maybe your seller sold it to someone else which was passed down to a heir and then sold to another party. You want to ensure all of these documents tie together and prove your seller has valid interest to sell you the property.

Why Does Chain of Title Matter So Much in Delhi NCR?

Residential: There are various type of residential properties which are offered for sale in Delhi NCR. Some of them are Free hold property, Lease Hold property, Builder Project, Authority alloted plot, Ancestral Property, Flat etc. Commercial: Commercial Properties are those properties which are used to earn profit. These could be shops, showrooms,office etc. All these properties are transferred either by sale deed, lease deed or any other type of deeds.

Depending on the type of property, the verification requirements may vary. Buyer should verify on what basis title is being made by the seller prior sale,authority record if any,Encumbrances and on which document the seller has current title.

Seeking a Legal Opinion from BK Singh Advocate will help you understand whether the document you have supports your transaction or not.

What Can Go Wrong If the Ownership Chain Is Not Checked?

• Problems can arise post-sale or post-registration of your property.
• You, as the buyer may discover that there is:
• someone who may have sold the property before;
• another possible heir to the property;
• an old bond or charge that needs to be discharged;
• a defect in a prior deed affecting ownership;
• the seller may not be able to sell;
• a family member that may challenge the sale;
• a litigious or other pending claim on the property.
• missing documents from the history of your property.
• Registration of your deed will not cure all defects in title.
• Something most are unaware of when buying their first property.

Do Registered Property Documents Automatically Mean the Title Is Clear?

A Buyer will always want to confirm whether the property he is going to purchase is legally clear.

Some checks you can perform:

Title of previous owner: Go through all the title documents of previous owner. E.g. Sale deed, Conveyance Deed, Gift Deed, Partition Deed, Relinquishment Deed, Succession Certificate etc.

Title of present seller: Cross verify the title of current seller with previous owner. Title should match with no gap.

If any charge/ mortgage/claim/lease: Depending upon the property you may want to check if any charge is created on the property.

Property through Inheritance: There may be more than one document which can establish title of property if its being acquired through inheritance. Few examples are- Succession Certificate, Multiple legal Heir, Will, Partition Deed, Relinquishment Deed etc.

Title from Authority: Check title from respective authority depending on the type of property. Development Authority, Municipality, Revenue or Sub Registrar.

What Laws Are Relevant to Chain of Title Verification?

Depending upon the property and the nature of sale/deal done it can be any or all of the below. Act 18of Transfer of Property Act 1882 (which deals with sale/transfer of Immovable property),Registration act 19XX (deals with registration of certain documents/instruments along with other registration requirements). It can also include Succession Act, Indian Stamp act (along with rule and state specific stamp acts), Lease deeds, authorization act, Development regulations,court orders or any contractual document.

We can search anything mentioned above which deals with your property. After analysing your deal depending on Title to property, what documents are available and what you intend to purchase, we at BK Singh Advocate don't just look at the last document executed.

What Does a Property Lawyer Actually Check?

Normally a person wants to verify that the property they want to purchase has no legal encumbrances.

Following are some of the verifications you can make:

Previous owner title: Go through all the title documents of previous owner. For e.g. Sale deed, Conveyance Deed, Gift Deed, Partition Deed, Relinquishment Deed, Succession Certificate etc.

Present seller's title: Cross verify current sellers title with previous owner. Both the title should match.

If any charge/ mortgage/claim/lease: Based on your property you can also verify if any charge has been created on the property.

Property bought through Inheritance: Many times multiple documents are there which can prove the title of the property being sold. Few of them are mentioned below-

Succession Certificate, Multiple legal Heir, Will, Partition Deed, Relinquishment Deed etc.

Title from local Authority: Depending on the property you can go to Development Authority, Municipality, Revenue or Sub Registrar office.

Who Should Consider Professional Chain of Title Verification?

• Title Search is this only for larger investors?
• Absolutely NOT! You can use this if you are just purchasing a residence.
• When would I use Title Search?
• If you are purchasing your first home;
• If you have purchased a home from a family member or friend in the past;
• Investors;
• Commercial Real Estate;
• Purchasing Land;
• NRIs looking to invest in India;
• When a company is purchasing a building;
• You are buying an older property;
• If there are multiple owners through the times of ownership. etc.

What Documents May Be Required for Chain of Title Review?

• It depends on what kind of property.
• May be important ones are:
• Title deed/Sale deed of present property;
• Prior Sale/Transfer deeds;
• Conveyance Deed;
• Allotment deeds;
• Possession Certificates;
• Mutation or other Revenue records if available;
• Succession certificate or Will;
• Partition Deeds / Relinquishment deed;
• Gift Deed;
• Any authority deeds which can be produced;
• Encumbrance Certificate if available.
• Sanctioned plans if any.
• Any agreements executed regarding property.

Don't ignore these papers just because the seller is convincing you that he got the property legally.

If any one of the above paper is missing, try to figure out how that was an eye opener for you.

How Does a Professional Property Title Review Help a Buyer?

Good opinion will let the buyer know what he/she is dealing with. He/she will have access to all the property documents the seller has and know how to look at them from a lawyer's perspective.

At BK Singh Advocate we search for mismatches in the documents or things which require special attention concerning title or sale of the property.

We will not tell you that your property has no flaws. That will be unfair to you if I tell that. And that would be silly for a lawyer to claim so without knowing the property related documents.

But yes you will atleast know your position.

Why Should You Hire BK Singh Advocate for Property Title Verification?

A good professional opinion would let the buyer know where he/ she stands..

Allow him/her to get his/her hands on the property documents that the seller is capable of providing. And understand those from an attorney's perspective.

At BK Singh Advocate we look for inconsistencies in the said documents. Or any loopholes that would need further cleaning with regards to title or sale transaction.

I would not want to sit here and tell you that your property has no defects. That would be dishonest to you as a consumer. And it would be wrong for a lawyer to tell you that.

But yes, you would at least know where you stand.

When Should You Contact a Property Lawyer?

Why should i need an advocate if i have all the documents with the Seller ?

You need someone who can expertly examine those documents and not just collect papers-load of them.

An advocate will go through each document one by one cross verify with other documents and inform if anything is amiss for you to maybe look into before you proceed with the sale/purchase.

BK Singh Advocate can help you with Property related queries on documents, Title etc. http://www.balajikansa.blogspot.in/

If you are purchasing a property in Delhi NCR or anywhere in India you can always get your paper work looked at by a professional. It is recommended that if the property has changed hands alot or if you have doubt about the authority to sell or any document.

Yes, the decision to buy is yours. The Advocate will only guide you.

How Can Property Lawyer Delhi Help With Chain of Title Verification?

Buyer only needs to know about what documents he/she has with him/her and whether there is any issue with the said property for his/her intended transaction.

We at Property Lawyer Delhi i.e BK Singh Advocate can assist you to understand what kind of documents you hold for the property. If there is any issue titles wise/legal-wise which needs to be addressed while buying a property.

Below are some of the questions whose answer depends upon what a person wants to know about his property.

– Do I have certain documents.

– What does my title trail reveal to me.

– Are there any gaps in the documents I have.

– What all I should be questioning about this property transaction.

– Do I need to move forward and get legal assistance.

If you are buying a property we can answer these questions for you depending upon your situation.

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