It is important to conduct a title search on the property. It is necessary to do so in order to ensure that the property being purchased has a clear title and is free of all charges. Given the significant cost of purchasing a home, we advise property purchasers to hire a certified lawyer or expert to do a property title search.
What is a title search?
The title search is thorough research of the property and review of all the property papers before investing, buying, selling. It is a process where one is taking the reasonable and necessary steps and this may also include conducting the search in Registrar Office and reading through different Acts and Regulations.
Various features of Title Search
There are many different components to title search, and they might vary from one property to the next, such as ready to buy, resale, under construction, renovated properties, and so on. Many rules apply when selling or buying property, including the Registration Act of 1908, the Transfer of Property Act of 1882, and state legislation (for example, in Maharashtra, the Maharashtra Co-Op Society Act of 1960, and the Maharashtra Apartment Ownership Act of 1970), among others. Personal laws are also invoked in the event of the owner’s death and the property’s succession. The due diligence procedure and documentation evaluation become complicated on their own at this point. All of these laws may be unknown to the average person. In addition, even though a transaction appears to be simple, it may be illegal in the eyes of the law.
When a property buyer does title verification, it is normal practice to consult with those who have a vested interest in the outcome. It is crucial to emphasize, however, that the conclusion is based on a review of the documents as well as a thorough examination of the law and relevant regulations. The property owner is put at risk by a buyer’s bad decisions.
The following are the different documents that we need to check for property title verification.
Check for the Clear Title: Any property must have a clear title that is free of any ambiguity. When purchasing a property, the land title should be clearly stated, along with the seller’s name as “owner of the property.”
Ask For Bank Approvals: If the bank agrees to fund you, you’ve already completed half of the work. Before accepting your loan, banks inspect the property. For residential buildings, many banks make on-site offers. It clearly demonstrates that the bank has conducted a legal inspection of the property and has obtained all necessary approvals.
Encumbrance Certificate: An encumbrance certificate is a document that indicates that a property is legally free of any mortgage or loan outstanding. It also mentions the name of the preceding property owner. The document provides details on whether
Check the Approved Plan with Actual Site: Ensure that a copy of the builder’s officially approved map is passed by the local authorities before purchasing an apartment project. If it encroaches illegally, it gives an excellent sense of the environment and the development spree.