Documents Confirming Clear Titles of a Property

Documents Confirming Clear Titles of a Property

Documents Confirming Clear Titles of a Property

Property buying is a process, while buying a ready to move in property, you need to go through the process of putting together the documentation very carefully. There are many documents which need to be scrutinized carefully. Genuine property and the clear marketable property titles are very important, the buyer has to ensure the property seller has these documents with him; it is a part of assessing the transaction. The purchase of a property should be done after a careful scrutiny by the purchaser. You should be diligent and check the title of the property and its mortgage status.

If you want to go for a bank loan or resell the property in future, title documents are very much required and in case of not having clear title documents will put you in to trouble and rise many complications in future.

Here is a list of the documents required:

  • Allotment letter
  • Sale deed of present owner
  • Sale deeds of past owners showing entire chain of ownerships and how they have been transferred
  • Approved building plan
  • Share certificate issued by the society (if applicable)
  • No-objection certificate from the society for transfer of title (if applicable)
  • Lease deed of society (if applicable)
  • Registration details of the society (if applicable)
  • Bye-laws of the society (if applicable)
  • Clear and marketable title of builder
  • Permission to mortgage
  • Possession letter
  • Mutation certificate issued by the municipal corporation
  • Receipt for payment made by the present buyer
  • Verification of signature of seller from bank

These are the crucial documents that should be checked carefully:

Transferring Ownership / Sale Deed

This is the document through which the title of a property is transferred by its seller to the buyer. It is also called as conveyance, it is the act of transferring ownership of a property by a seller to the buyer. This document helps the buyer ascertain whether the property proposed to be bought belongs to the seller/society/builder or development authority.

You need to start from the very inception and check all the documents that trace the entire history of the property – how the land was allotted, who built the property, how the property devolved subsequently, and how it came under the ownership of the present owner. This will help you check details such as whether the present seller has a clear and marketable title to sell the property, whether the seller is holding the property in trust for some family member, or whether there are more than one owners of the property.

Search Report, Title Certificate

There are usually prepared by a lawyer. A search report is issued after conducting a search on the title of the property that is intended to be purchased. A search report on the title of the property is taken for a period of the last 30 years. A title certificate states that the property is unencumbered and has a clear and marketable title.

These documents will state that the title to the property is clear, marketable and free from encumbrances. They will disclose any existing mortgage, litigation, condition or claim, which is likely to affect your title adversely. In case you intend to take a housing loan, the bank will get these report prepared.

Municipal Approvals

This again is an important document. It shows that a building has been constructed according to the approval received from the municipal authorities and that the building plan is in conformity with the prevailing by-laws and rules.

7/12 Extract

This extract is issued by the concerned Tahsildar or civic authority. It gives details of the property including survey number, location, area, date from which current owner is registered as owner etc.

Occupancy Certificate

This is issued by the builder of the housing development society, confirming that the possession of the property has been given to the owner. Permission for transfer from the society is needed in some cases too. Also, a no-objection certificate (NOC) has to be obtained by the seller from the society for transfer of property in certain instances.

The NOC will also state that there are no dues against the property payable by the seller.

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