If you are planning to purchase a property or have paid money in advance for it, then you must verify the legal documents of the property to avoid unscrupulous practices by the builders or developers. This real-estate industry lacks transparency, therefore, before buying any land, it is best to physically inspect all the documents by exercising due diligence and awareness of your rights. This blog will help you in understanding how you can verify the legal documents of your property without the help of a lawyer.

What is a property document verification process?

When a buyer purchases a property, leases a property for the long-term or takes a mortgage against a property he must get the property’s document verification process done to ensure that he is making an authentic deal. They must inspect all the documents related to the property before deciding to buy so that in the future the owner doesn’t get into legal trouble because of inappropriate documents.

What are the benefits of the property document verification process?

Conducting a thorough property document verification process before finalizing the deal will help you in the following ways:

• It will give an assurance that the property involved in the transaction is legal and that all the documents about it are legitimate.
• It will be easier for you to take loans against the property after verification.
• After the property document verification process, the seller has the right to sell the property.
• If forged and fabricated documents are presented, then this process will help you to make a rational decision and avoid the transaction.
• The seller might try to sell the same property multiple times and fraud people which can be avoided through the property document verification process.

What documents are required for the verification process and how can you verify them?

The real estate law has not only made the situation more favorable for property buyers but also provided a do-it-yourself checklist to know whether the property you are shortlisting is worth investing in or not. Following is an exhaustive list of the documents that are required for the property document verification process:

1. Check for title documents 

Title documents of a property are the legal document that transfers ownership of the property and are typically used to transfer property from one individual to another. First, ask the seller to share the title documents and get them verified from the sub-registrar’s office. The title must be clearly stated, without any dispute. You have every right to get any previous transaction papers from the seller and get the property document verification done. This document designates the rightful owner of the property. You may even leverage a local newspaper to publish an ad stating your plan to purchase the given property and if the property is disputed, then an objection can be raised.

2. Ask for bank approvals

If you are planning to take a home loan from a bank, then half your work is already done because before approving your loan application, banks evaluate the documents of the property. They also do on-site visits to check whether the property is legally verified and has all approvals in place. If a bank gives an affirmative response towards the authenticity of the property, then half the battle is won and you don’t have to hassle much for doing the property document verification process, but do check the clauses before signing the loan agreement with the bank.

3. Encumbrance Certificate 

An Encumbrance Certificate (EC) is a certificate of assurance that the concerned property is free from any legal or financial liability such as a mortgage or pending loan. Before procuring a property, you must make sure that the property has a clear title. Acquiring an Encumbrance Certificate will help you to know that the property you wish to buy is free from any financial or legal liability. If you notice a charge on the EC, it is important to rectify it before you make the purchase. It will also help you find out if any existing owners can legally claim the property.

4. Harmonize the approved plan with the actual site

A site plan, also known as a plot plan, is a diagram that is meant to show proposed improvements to your property. A site plan is necessary because it provides information regarding the landscape features of a given parcel. Once your plans get approved by local authorities, a site plan will act as a layout map for your proposed addition of a new room, a library, a garage, or whatever else it is that you are creating. If you are buying a property for an apartment project, ask for a copy of the approved map from the builder which is passed by the local authority. This can give you a fair idea about the area and the illegal encroachment area.

5. Look into property tax receipts

If you are purchasing a resale property, then ask for the property tax slips from the previous owner. This will not only give you an insight into the factor the colony or the society in which you are buying the plot is regularized or not but also gives an overview of the fact that the property is duly registered and no dues are pending with the municipal authority.

6. Check Sales deed

A sale deed is a legal document that is used during a property transaction as evidence of sale and transfer of ownership of a property from a seller to the buyer. This is the main document for the transfer of ownership. It should consist of the details like the name, age, and address of the seller and buyer, property details such as total area, details of construction, exact address, final deal price of the property, etc. It must be scrutinized and verified properly. You may even want to verify the sales agreement which is created and signed before preparing the sales deed.

7. Power of attorney

A Power of attorney (POA) of property is a legal document transferring the legal right to the attorney or agent to manage and access the principal’s property in the event the principal is unable to do so themselves. In real estate, the POA of property may be used by individuals who are selling a home but are living overseas and unable to be present during the sale. While doing the property document verification process, it is required that you ask for the Power of Attorney to identify whether the property is being sold by an authorized person on behalf of the property owner.

8. Check out whether a property is under a registered society

A registered society is an association of several individuals combined using a mutual accord to deliberate, govern and act cooperatively for some communal purpose. The apartment project is attached to a registered society along with a resident welfare association. This in itself is a legal process and also gives an idea about the legality of the project and the property you are buying.

9. Other documents 

The Other documents that are required for verification of property include the relinquishment deed, partition deed, will (if applicable), freehold, and mutation details.

Conclusion

Whenever you are buying a property, taking it on a lease, or taking a loan against a property you need to do the property verification to check the authenticity of the property documents. However, it is not compulsory to get the property document verification process done. It is done to clear any kind of doubts in the mind of the buyer regarding the property like title, ownership, encumbrances, etc.

Generally, it takes 5 to 8 days to complete the property document verification process, but Esahayak will help you in getting it done quickly. Hence, for a property valued at lakhs and crores, spending a few thousand on the property document verification process is a wise decision as it will ensure that you are investing such a huge amount in the right property. Compared to the commissions charged by real estate brokers, the expenses involved in the property document verification process by Esahayak are almost negligible.