Documents to be checked before purchasing property

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Owning a property is an important thing in one’s life. However, one needs  to be careful while purchasing a land in each point to avoid falling into legal hassles. Precaution is needed from the initial stages of deciding on a property till the registration. The legal status of the land is one of the first issues that you should address before confirming a property. Don’t make any confirmation by paying advance before checking the legal status of the property.

Before purchasing a property, there are a number of enquiries that need to be done to confirm that the land has a clear and marketable title. The first thing is to find out the tenure and legal right of the holder of the land in government records. The tenure or possession right could be freehold, leasehold or may be held under a government grant. Freehold land is always most preferable. The seller should provide all the necessary documents to the buyer.

There are certain documents which need to be taken care while purchasing the property.

Title Deeds

First and foremost, check the title deed of the property which is being purchased. Confirm whether the property is in the name of the seller and the rights to sell the property lies with only him and no other person is involved in it. Don’t satisfy yourself with the copy of the title deed. Insist on seeing the original deed. Sometimes the seller may have taken a loan by pledging the original deed. It also needs checking whether the seller has permitted any access to others through this land and whether any other fact has been left undisclosed by the owner of the land.It is better to get the original deed examined by a lawyer. Along with the title deed, the buyer can also demand to see the previous deeds of the land available with the seller.

Tax receipt and bills

Property taxes which are paid to government or municipality are a first charge on the property. Hence, enquiries must be made in government and municipal offices to ascertain whether all taxes have been paid up to date. The owner should also possess the latest tax paid receipts, which you may inspect. While investigating in different departments of the municipality, you need to ascertain whether any notices or requisitions relating to the property have been issued and are outstanding and not yet complied.While inspecting the property tax receipt, it can be noted that there are two columns in the tax receipt. Make sure that the name entered in the owner’s column is correct.  The second column will be for the name of the one who paid the tax.  Sometime the owner may not have the tax receipt with him, in such cases, contact the village office with the survey number of land and confirm the original owner of the land. If you are buying a house along with the property, then the house tax receipt should also be checked. Also make sure water bills and electricity is been paid up to date and if there any is balance payment to be made, ensure that it is made by the seller.

Encumbrance Certificate

Before purchasing the land or house, it is important to confirm that the land does not have any legal dues. Check the Encumbrance Certificate issued by the sub register office where the deed has been registered, stating that the said land does not have any legal dues and complaints.

Pledged land

Some people may have taken loan from the bank by pledging their land. Ensure that the seller has paid back the entire amount due. Don’t be satisfied with the receipt of the payment made. Release certificate issued by the bank is necessary for all the debts over the land. You could buy a land without the release certificate. But if you want to take a loan in future, the release certificate is a must.

Measuring the land

It is wise to measure the land before registering property in your name. Confirm if the measurements of the land are accurate. You can do this with the help of a recognized surveyor to avoid problems in the future. You could also take the Survey Sketch of the land from the Survey Department and compare for accuracy.