In Focus

Verify title before investing in property

By Gajanan Khergamker

Before investing in property, it is advisable to appoint a legal consultant to inspect the original title documents of the property being purchased. If the title is not clear, there may be a huge number of complications arising in future. Firstly, no bank would provide a loan against a property without a clear title. It may be difficult to transfer share certificate of the society to your name and selling of property will not be simple either. Here goes a check list of documents that you should verify before buying a property

Firstly, you need to have the Conveyance Deed or Sales Deed in place. This is a deed document by which the title of the property is conveyed by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. This document will help you ascertain whether the property which you are buying is on land belonging to the society/builder/development authority in which the property is located.

And then, there’s the 7/12 extract which is a document issued by the Tehsildar or the concerned land authorities giving details such as the survey numbers, area, date from which current owner is registered as owner.

There’s also the Index II - a document issued by the office of the Sub-Registrar of Assurances which mentions the name of the seller and purchaser of a property for which the document is registered.
The buyer may need to get a Search Report, which is a search of the title of the property is taken for a period of the last 30 years. This search report and title certificate can be obtained from one’s own advocate or if the search has already been conducted by the current owner then one can have his/her advocate inspect these reports to ascertain the title of the property.

If the land under consideration is agricultural and if one intends to develop the said land for residential / commercial / industrial use, then such agricultural land has to be converted to non-agricultural land and a Non Agricultural Order has to be obtained from the Collector of the District where the property is located.

With this, one needs to take the latest receipts evidencing the payment of Non Agricultural Tax. In cases done within the stipulated period then, there should be an order from the concerned authority extending the period.

Apart from these, you need to get a few more documents pertaining to the project / building in place.
You need to get a Development Agreement in place. This is an agreement entered into by the builder with the landowner. It contains details regarding the terms and conditions on which the landowner has permitted development of his property. This is where the landowner engages a third party (i.e. the developer/builder) to develop and build on their plot of land. This agreement is generally accompanied by a Power of Attorney in favour of the Developer/builder.

An Approved Building Plan made by the Developer/builder needs to be approved by the Municipal Corporation or the concerned authority. The approved building plans need to be checked necessarily.
There’s also the Intimation of Disapproval (IOD) issued by the local municipal corporation or any other local authority pertaining to any city or district to the developer/builder intimating that the proposed plan submitted by the developer/builder is disapproved to the extent of details mentioned in the said IOD.

This Commencement Certificate is given by the municipal corporation permitting the developer/builder to begin construction. This is done once the plans have been approved. This Completion/Occupation Certificate is given by the concerned authorities to the developer/builder once the said building is complete in all respects and fit for occupation.

To avail a legal service, an expert opinion or an appointment with Solicitor and Property Law Expert Gajanan Khergamker, call 8080441593