Advocate Selvakumar|Property Advocates in Bangalore|Senior Lawyer
Before going
in an agreement for purchase, verification of title is extremely necessary.
It’s not just tracing the title however conjointly examination of the
genuineness of the records, identification of the property, in newspapers and
physical possession of the title of the property. Clear and marketable title
free from doubts and encumbrances with a right of physical possession of the
seller are necessary ingredients for peaceful possession and delight of the
property by the vendee.
The first
and foremost step in purchase of property is that the scrutiny of title deeds
before going in an agreement with the seller/vendor.The possession is derived
from the title deeds and also the revenue records. The subsequent are the strategies
of scrutiny:
Origin of the Property:
The origin
of the property is extremely necessary to trace the title of the property. It’s
otherwise known as “Root of Title”. To trace the title of the property,
examination of the origin of the property up to a most amount of forty three
years could also be needed in most of the cases. If someone is enjoying the
property for quite thirty years, he can get title by adverse possession against
the govt. as per the Limitation Act. As
per Section ninety of the Indian proof Act 1872 any document executed 30 years
before is plausible to be valid. Will,
Partition, Family Settlement don't seem to be thought of as concrete origin. A
number of the recent revenue records like Index of Land, Record of Rights,
Phani, Survey documents are thought of as higher origin.
Subsequent Transfers:
After
ascertaining the origin of the property, it ought to be followed by organized
examination of later events and additional transactions in an uninterrupted and
sequent manner, involving the previous homeowners and also the gift owner of
the property. Here, the purchaser's advocate has got to terribly fastidiously
check up on all aspects from varied legal angles on however the property was
transferred from the previous homeowners to the current owner. Such a transfer
could also be by possession, inheritance, settlement, will, sale, mortgage,
release, gift etc., involving such intermediate parties. To induce a
transparent image of rightful possession, title and interest, the advocate has got
to fastidiously examine the title deeds and different supporting documents like
revenue and different records. It’s conjointly necessary to verify the identity
of the names of parties and their family connections and examination of the
continuing involving the parties before any Court of Law and different legal forums and authorities as well as revenue authorities, if any. Whereas
scrutinizing the documents, Advocates got to apply their mind and logically
link the relevance of 1 document with the opposite.
Present Status:
“Present
Status” is a crucial issue to ascertain possession over a property. The
advocate has got to ascertain who the current owner is and what are the title
deeds and supporting documents the seller has in his possession, whether or not
it's an ancestral property or self non-heritable property, United Nations
agency are his legal heirs etc. If the legal heirs of the seller are major, the
seller should guarantee their presence whereas death penalty the Deed of Conveyance. If they're minors, the seller has got to get the permission from
the court before death penalty the Deed of Conveyance. In some cases the seller
could conceal the actual fact of existence of legal heirs. Therefore, the
advocate should insist upon the seller to provide either the succession
certificate or the family kin tree issued by the revenue authority. Similarly,
it's necessary to verify and make sure that no acquisition or requisition or
the other court proceedings are unfinished before any authority. It’s conjointly
necessary to seek out whether or not there exists any loan, charges, and
encumbrances over the property.
Statutory Clearance:
For
finishing the sale dealing, varied statutory clearances are to be obtained from
the involved authorities like Income-tax, RBI, revenue authorities, etc. just
in case of purchase of agricultural land, there are varied different clearances
to be obtained before death penalty the Deed of Conveyance.
The advocate
should ascertain in whose name the Khatha stands, whether or not the Khathedar
possesses up-to-date tax paid receipt in his name and up-to-date Encumbrance
Certificate to ascertain his right, title and interest over the property. The
advocate has got to check the Encumbrance Certificate covering the relevant
amount, typically for a minimum amount of thirteen years to forty three years
on case to case basis. an examination of Encumbrance Certificate would head to
show on whether or not any quite charge has been created on the property and
whether or not such an encumbrance remains subsisting or not. Municipal and
different revenue authorities conjointly maintain records on in whose
possession the property exists, what's the quantity of tax collectable on the
property and up to what amount tax has been paid. All this could be observed
from these records.
Genuineness of documents:
After
completely scrutinizing the documents, the vendee or his advocate has got to
crosscheck all documents with the involved revenue or different departments to
confirm that the documents are real and are originated from the involved
departments which they're not pretend. Within the case of buildings, it should
be ensured that the seller has made the building as per sanction arrange and in
step with the statutory pointers.
Identity of the property:
The identity
of the property should be checked on the spot. Measurements mentioned within
the documents should tally with actual physical activity of the land accessible
on the property. It should even be ensured that there's no encroachment on the
property. Just in case of encroachment, the activity of the accessible land
should be recorded and this should be mentioned within the Deed of Conveyance.
The boundaries within the schedule encompassing the property should be checked
physically. Also, the vendee could build enquiries tactfully with the adjacent
property homeowners concerning the possession of the property he's proposing to
shop for.
Paper Notification:
Though paper
notification is optional, it's perpetually better to apprise in an exceedingly
leading native newspaper concerning the buyer's intention to get the property.
This can be done to safeguard the interest of the vendee. Even once examining
the assorted documents, the Advocate might not be ready to ascertain whether or
not the property is actually free from any claim or not. A paper notification
can sire response from real claimants, if any. Therefore, paper notification
are of some facilitate to the vendee to form certain on the genuineness of the
possession of the seller.
Physical Possession :
In the case
of a vacant site, the vendee could, with the permission of the seller fence the
property with wire or he could construct a compound wall and place up a sign,
if necessary, to show his possession over
the property.
Even once
going in an “Agreement to Sell”, the vendee will still build enquiries
concerning the title. An uncertain title cannot be forced upon the vendee.
Vendee isn't certain to complete the sale dealing, if there are defects within
the property, material or latent, that doesn’t seem to be discernible within
the normal course. A mere suspicion of fraud won't build the title uncertain
and also the vendee cannot reject the title. it'd be of nice facilitate if a
prospective vendee utilizes the services of an experienced advocate for a
radical scrutiny of the documents on the vesting of the marketable title with
the seller and genuineness of the documents who on examination of documents are
in an exceedingly position to clarify to his consumer about the chance
concerned within the dealing and guide him fitly therefore on save the vendee
from litigations.
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