How do I verify property documents before purchasing a property?
Joginder Singh Rohilla
Advocate at High Court of Madhya Pradesh, Indore | Civil & Criminal Lawyer In Indore
Purchasing a property is a significant financial commitment, and ensuring the legitimacy of the property documents is crucial to avoid legal disputes or financial losses. Here is a detailed guide on verifying property documents in India:
1. Title Deed
What to Check: Verify that the seller has clear ownership of the property with an original title deed. Ensure the property is free from disputes and other claims. How to Verify: Cross-check the deed with the records available at the Sub-Registrar's Office where the property is registered.
2. Encumbrance Certificate (EC)
What to Check: This document confirms whether the property has any outstanding dues, legal issues, or mortgages. It is essential for ensuring that there are no financial or legal liabilities attached to the property. How to Verify: Obtain the EC for at least the past 12-30 years from the Sub-Registrar's Office.
3. Mutation Records
What to Check: Mutation records show that the property has been transferred to the current owner's name in the municipal or local revenue records. How to Verify: Check with the local municipal office or revenue department.
4. Approved Building Plan
What to Check: The building must comply with the zoning laws and have approval from the local authority for construction. How to Verify: Verify the building plan approval from the local planning authority.
5. Property Tax Receipts
What to Check: Ensure that the seller has cleared all property tax dues. How to Verify: Ask for the latest property tax receipts and verify them at the local municipal office.
6. Conversion Certificate (For Agricultural Land)
What to Check: If the land was previously agricultural, verify the conversion certificate to ensure it is legally converted for residential or commercial use. How to Verify: Obtain this document from the revenue department.
7. Sale Agreement and Sale Deed
What to Check: The sale agreement should outline all terms, while the sale deed finalizes the transfer of ownership. How to Verify: Check both documents with a legal professional and ensure proper registration.
8. No Objection Certificates (NOCs)
What to Check: Depending on the property type, verify NOCs from authorities like the electricity board, water supply, and fire department. How to Verify: Collect and review all NOCs applicable to the property.
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9. Possession Certificate
What to Check: This certificate is essential to prove that the seller has granted legal possession of the property. How to Verify: Verify this document with the local revenue office or the Sub-Registrar’s Office.
10. RERA Registration
What to Check: For under-construction properties, ensure the builder is registered with the Real Estate Regulatory Authority (RERA) as per the Real Estate (Regulation and Development) Act, 2016. How to Verify: Check the RERA website for the property and builder's registration details.
11. Bank Approvals (For Loans)
What to Check: If you're financing the property purchase with a loan, banks conduct their own due diligence to ensure the property is free of legal complications. How to Verify: Ensure the bank approves the property for a loan.
Precautions While Verifying Documents
Always insist on original documents. Cross-verify with legal and government authorities. Hire a real estate lawyer to check for authenticity and provide legal advice. Check for the property’s current market value and any ongoing litigation.
FAQs
Q1. Can I verify property documents online? Yes, several states in India allow online verification of property records through their respective revenue or municipal websites.
Q2. What is the importance of an encumbrance certificate? An EC ensures that the property is free of financial liabilities, such as mortgages, legal claims, or ownership disputes.
Q3. Should I hire a lawyer for property verification? Yes, consulting a lawyer ensures that you do not miss any critical legal details or face challenges in the future.
Q4. Is it necessary to verify all past ownership records? Yes, ideally, verify ownership records for at least the past 30 years to ensure clear and uncontested ownership.
Proper document verification minimizes legal risks, ensures clear ownership, and provides peace of mind for property buyers. If you have specific concerns or questions, consulting a property lawyer is highly advisable.
Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304