Ninety percent of all millionaires become so through owning real estate. Only pre-condition is, they should not be defrauded while accumulating the assets.
Most property related frauds can be categorised around Title Deception; Hurried sales; Assured returns scams; Delays in Possession; Fake promises; Forced cancellations; Selling without authorization; Change in plans; Selling the same unit to Multiple buyers; Encroachments etc… a buyer faces a comprehensive due diligence before purchasing the property.
Rangmahal CGHS Property fraud was estimated to be of INR 4000 Crores. Emaar Property Scam was INR 2500 Crore. A whooping 2 Lakh Crore scam was unearthed in a report from Minority commission who alleged that Karnataka Wakf Board illegally distributed the land of 27,000 acres for a small amount. Noida Land Scam, Adarsh Housing Scam and many more such frauds trap the home buyers who suffer as victims due to lack of due diligence that follows an emotional decision to buy the property
An intelligent buyer should ensure to engage the Best Legal Consultant to conduct a proper due diligence, and also by personally visiting the property, checking the background of developers, acquiring all required papers. One can gather professional advice from Best Property Lawyers in Bangalore before purchasing. Once you are satisfied with your due diligence only then proceed with your purchasing decision.
Here below in this article, based on my past experience assisting clients with verification services share this comprehensive checklist for the benefit of the readers, while is comprehensive, a subset of this list is good enough for you to make a buying decision if you are willing to purchase an apartment or home, but in case of land purchase, such details will be definitely essential. The point to keen in mind is the seller should carry absolute ownership and such should be Indefinite, Unrestricted and Unlimited so that he / she can enter into an agreement to transfer the property titles to you.
Checklist for Property Verification
1. Document to show how the present owner acquired the title of the property he is willing to sell and you are wanting to purchase. Also produce previous title deeds for 30 years, not necessarily all but any of the below:
a. Sale Deed
b. Partition Deed
c. Gift Deed
d. Release Deed
e. Exchange Deed
f. Will / Inheritance followed with tile transfer etc…
in summary a Mother Deed / Title Deed to know how the seller has acquired the current property you wish to buy. We will also need to ensure if the seller has absolute rights to sell the property. The recent ruling in the case of Dahiben v. Arvindbhai Kalyanji Bhanusali also Vidyadhar v. Manikrao & Anr the court held that non-payment of entire sale consideration could not be a ground for cancellation of the sale deed. Which indicates the person who is selling the property to you although carries the sale deed would not have paid the full amount and a lien exists on the property. Which means, someone else has a right to keep possession of property belonging to another person until a debt owed by that person is discharged.
2. Family Trees and Death Certificates:
A family Tree certificate is issued by the Revenue Authorities of Karnataka for the inheritance of property. The Supreme Court has ruled that daughters are entitled to inherit fathers' self-acquired and other properties, hence inspecting a family tree will add more clarity for a purchaser and known upfront that there shall be an NOC that needs to be taken by all possible people as in the Family tree to be dispute free in the future.
3. Index of Lands and Record of Rights : Land index consists indicators like
a. Transparency of land records;
b. transparency of land registration
c. reliability of land records
d. reliability of land registration
e. reliability of spatial records
4. Mutation Register extracts and Inheritance Certificate
Since the property is perpetual, it flows from one person to another. By mutating a property, the new owner records the property in his name. Such details are reflected in the land revenue department.
5. R.T.C.'s (Rights, Tenancy & Crops) for at least a period of 30 years
RTC also is known as Pahani. This is an important document while buying an apartment or land. This document helps to identify and curb bogus transactions.
Under Section 90 of the Evidence Act, 1872, a document 30 years or more is presumed to be validly executed and the contents thereof are presumed to represent the correctness, and so one should verify records at least that of 30 years. However, if records for 12 years are available is also good because that is the limitation period if any one has to initiate a legal suit as under Article 62, 63B, 64, 65, 66 of the Limitation Act 1963.
6. Copies of:
a. Akarband
b. Tippany
c. Hissa Tippani
d. R.R. Pakka (Balabhagada Nakalu)
e. Karda
f. Mysore Settlement Register
g. Hudbast
h. Village Map
7. Survey Sketch from the Survey Department with respect to survey number clearly indicating the
a. Location
b. Extent
c. Boundaries
d. Hissas and
e. Demarking kharab land and road, if any.
8. Endorsement from the
a. Tahsildar regarding tenancy applications filed or pending, under Sections 48A and 77A of the Karnataka Land Reforms Act.
b. Assistant Commissioner regarding proceedings, under sections 79A and 79B of the Karnataka Land Reforms Act 1961 with respect to the subject property.
c. KIADB, KHB / BDA / BMRDA regarding notification issued if any for the acquisition of the subject property for any of their developmental purposes.
9. Conversion Order for having converted the land from agricultural use to residential use along with the Sketch annexed.
If a residential or commercial property is constructed in an agricultural land, heavy fines will be imposed and also the government will have authority to demolish the building.
In one such recent case, Chief Justice Abhay Shreeniwas Oka and Justice Sachin Shankar Magadum passed the order after hearing a PIL filed by Col C P Muthanna and held that ‘No Objection Certificate’ (NoC) issued by the technical committee headed by Deputy Commissioner should not be construed as permission for conversion of agricultural land for non-agricultural purposes.
10. Agreements
a. Joint Development Agreement / Contracts
b. Allocation Agreement
c. Construction Agreement
d. Agreement of Sale / MoU
e. GPA executed in the favour of person getting into Agreement
11. Sanctioned Plan approved by the competent authority
a. For Building the Apartments / Row Houses / Villa
b. Club house facilities
12. No Objection Certificate from
a. BWSSB
b. BESCOM
c. Pollution Control Board
d. Fire Force and
e. Airport Authority
13. Important Certificates / Notices
a. Commencement Certificate issued by a competent authority
b. Completion Certificate issued by a competent authority
c. Occupancy Certificate as and when the building is completed.
d. Certificate / Notice for assigning door number to individual home
e. Khata Certificate / Khata Extract
f. Encumbrance Certificate
g. Possession Certificate
h. Up to date Tax Paid Receipt
i. Certificate or notice if property abuts Public Highway
j. No Due Certificate from the Apartment Owners’ Association – Electricity Bills / Maintenance / Water Bills etc… (in case you are purchasing an apartment from existing owner and not from the builder)
k. Details of the by-laws of the society, to ensure after you have purchased the property the rights you carry on easements, balconies, open spaces, additional constructions, alterations etc..
14. Additional documents in case of mortgage / charges / lien created and / or documents related to all past and current litigation or other disputes
15. Court Permission in Favour of the Guardian if the minor is an interested party or carries a share in the property. [ Ref: Supreme Court - Murugan & Ors. vs Kesava Gounder]. Such a transfer from a Guardian is considered Voidable upto three years of the minor attaining majority.
16. If you are purchasing a property from a Company and not an individual, the following documents needs to be verified
a. ROC Verification to confirm the property belongs to the company
b. Creation of Charge / Mortgage or hypothecation
c. At least three years balance sheet to check insolvency or liquidation
d. Check if the property not under an Acquisition Process that restrains alienation rights as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
17. Special Consideration when buying land from SC / ST. There shall be no problem if it’s a self-acquired property. But if the property or land was granted by the government it will attract the PTCL Act.
This act Prohibits Transfer of Certain Lands that the Government has granted to individuals in the Scheduled Castes and Scheduled Tribes. If such a land is purchased from an SC / ST the Purchaser shall not get clear titles. Such property will be acquired by the Government and returned to the original owner without any compensation to the purchaser.
While the above checklist is comprehensive enough for a buyer and perform the required due diligence to buy the Apartment / Flat / Villa / Farm House / Row Houses / Plots or Land and enjoy it peacefully, it is essential that you avail the services of the Best Property Lawyers in Bangalore and ensure you have gathered the legal opinion.
The Best Real Estate Lawyers help their clients not only with Legal Opinions but also assist monitor the Legal Risk in the documentation and advise clients accordingly. Draft and negotiate real estate transactions, facilitate and fetch appropriate approvals as need be, manage regulatory compliances and represent clients in case of litigation and support in all forms to the clients both individual and corporate clients / builders for a seamless and hazel free business.
Feel free to connect with Adv. Sonia Rajesh for a consultation or drop in a note at mail@lawyersonia.com if you need any assistance with Property Verification and a Legal Opinion is required before you wish to purchase a property.
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