Reviewing Property Documents
Reviewing property documents is one of the most critical steps in any real estate transaction. It ensures legality, verifies ownership, and protects buyers from potential risks or fraud.
Importance of Property Document Review
- Legal Validity & Clarity: Confirms the property title is free from disputes, litigation, or hidden liabilities.
- Fraud Prevention: Protects against forged documents, undisclosed dues, or fraudulent claims.
- Ownership Validation: Confirms the seller has complete rights and authority to sell.
- Financial Security: Essential for securing home loans and safeguarding your investment.
- Regulatory Compliance: Ensures the property meets all local legal and regulatory requirements.
Key Documents to Review
- Title Deed: Establishes ownership and provides the chain of title, including past owners and encumbrances.
- Sale Deed: Legal proof of sale and transfer of ownership.
- Encumbrance Certificate (EC): Verifies the property is free from mortgages, dues, or legal claims.
- Property Tax Receipts: Confirms tax payments and continuity of ownership.
- Approved Building Plan: Validates compliance with local zoning and construction rules.
- Completion/Occupancy Certificate: Certifies readiness for occupation and adherence to safety standards.
- Khata Certificate: Proof of registration with municipal authorities; necessary for taxes and utilities.
- No Objection Certificates (NOCs): Clearances from departments like water, electricity, and pollution control.
- Mother Deed: Traces the complete ownership history to identify any disputes or gaps.
- Power of Attorney (POA): Must be verified if the sale is executed through a representative.
- RERA Registration Certificate: Ensures transparency and compliance for under-construction properties.
Steps for Reviewing Property Documents
- Collect all relevant documents from the seller.
- Verify the Title Deed for authenticity and ownership history.
- Check the Encumbrance Certificate for existing liabilities or loans.
- Validate property tax receipts for any outstanding dues.
- Review the approved building plan for compliance.
- Obtain all necessary NOCs from relevant authorities.
- Match property details with physical inspection.
- Verify mutation records for government updates.
- Confirm the seller’s identity and validity of any POA.
- Carefully review the Sale Agreement, preferably with legal guidance.
- Consult a property lawyer for an in-depth review and legal advice.
Role of a Lawyer
- Interpreting and verifying legal documents.
- Conducting title searches and ownership verification.
- Ensuring compliance with property laws and regulations.
- Drafting and reviewing agreements to protect buyer’s interests.
- Providing legal opinions on the property’s status.
Online Verification
Many states now offer online portals where buyers can verify land records, encumbrance certificates, and mutation details.
Addressing Discrepancies
If discrepancies arise—such as disputed ownership, pending litigation, or undeclared liabilities—they must be resolved before proceeding. In some cases, a rectification deed may be used to correct minor errors. Always seek a lawyer’s advice for the appropriate course of action.