Steps To Investigate The Title Of The Property

Investigation of title is very essential since the ownership of the property is required to be complete, fair & free from any doubts, risks & interest. The purchaser must take all necessary steps at the time of acquiring property to obtain a good & clear title of the land. When search is conducted unto the property of the person who owns it, it is called the Investigation of Title. It is also popularly called as ‘SEARCH‘ into the ownership of the property.

The objective of investigations of title is to ascertain the ownership and title of a given property, in most cases immovable in nature. The attributes of ownership are: –

Right to have and to get possession
Right to prevent interference by others
Power of alienation
Liberty of using the object according to owner’s will
Liberty of enjoying the fruits and to avail of the object owned
Liberty of changing its form and even destroying it

In Maharashtra to check the title verification of the property the investigator must do the following checks: –

Recent 7/12 Extract (7-12 Utara)

It will give idea about the type of ownership, total number owners (and their share in property) of the property. Loan on the property, tenant in the property (if any), cultivable and non-cultivable area in the property, source of irrigation (if any), assessment for the property, Class of the property, Reservation on property (if any).

All mutations on 7/12 extract (Ferfar)

Mutations are the entries made by the revenue department in respect of any change in ownership of the property, such changes may be because of death of any owner, Loan obtained by any owner etc. some time it may happen that name of any person appears in Mutation but not in 7/12 extract, to check such things it is advisable to check all mutations.

Maps

It is advisable to check maps provided by the government authorities, this gives better idea about the exact location of the property and access to the property.

Ceiling Limit

As per the type of the property there is a Limit provided for the holding of the Land, the purchase must check that the Land which he is going to purchase will not cross his limit as well as he has to check that the vendor is also not holding it as excess land. The Khate Utara (8 A Extract) is a document which gives us idea about the exact holding of the owner.

6c Certificate (Varas Register)

6c Certificate is a document which gives us idea about the names of all Legal Heirs of deceased person. This document is very important as, it is noticed that sometimes names of Female Legal Heirs are not appearing on revenue documents, to avoid such ambiguities it is advisable to check 6c Certificate.

Lis Pendens

If any, recorded U/S.52 of the T.P. Act should also be verified with the District Sub- Registrar. It would also be necessary to take search in the office of the collector of the relevant records and it would give the buyer’s advocate the title to the property and show how title has devolved. No doubt should be left unanswered and nothing should be taken for granted where a continuity link is broken and without satisfactory explanation forthcoming therefore.

Publish Notice

Some transactions are un-registered and to check such transaction it is advisable to Publish notice in at least two Local Newspaper and ask for objections. This helps the purchaser advocate to satisfy himself about the title of the property. Claims are invited in the nature of mortgage, lien, charge, lease, easement, gift, trust, or any other claim against the property which is required to be notified to the buyer’s advocate within a period of 15days after which it shall be deemed to have been waived. Such Public Notice supports the buyer’s contention in the case of dispute that he is a bonafide purchaser for value without notice of any claim.

Enquiry in Municipal Corporation

It is advisable to make an enquiry with local municipal corporation office, whether there are any claims to the property concerned, find out whether there are any arrears of municipal bills or water charges or riot bills in respect of the property agreed to be purchased by the buyer.

Enquiry with the Ward Officer

Enquiry with the ward officer in which the property is situated to find out

Whether the property or any portion thereof has been notified under the Land Acquisition Act for public purpose
Whether any notice, notification, action or claim is pending against the property.
Whether any portion of the property is included in the setback
Whether there is any notice pending against the said property

CRZ Zone Office

An enquiry is also to be made in CRZ and other zones as it is not allowed to any development in such zones it is necessary for the purchaser to check such zones before signing any deed. The purchaser also satisfy himself that the seller is not going to become a Land-less person after said purchase of land.

Title Deeds

The title deeds have to be gone through after arranging them in chronological order and then prepare an abstract of title. The abstract must contain in a nut shell relevant information relating to the deed which is abstracted. An abstract of title contains a gist of the documents commencing with root of title and facts which constitute the vendor’s title.

For closure in a sale after all these reports purchaser’s requisitions on the vendor’s title to the property is to be prepared. The requisitions are of two type’s general and special requisitions. Special requisitions are objections raised by the buyer on scrutiny and appraisal of the documents produced by the vendor, and relate to title or defects in conveyance. General requisitions are more or less of a routine type of inquiries. A set of general requisitions are those which one may adopt to suit a particular transaction.

Income Tax Certificate

Income tax clearance certificate must be obtained under section 230A of the income tax act. All necessary registration and stamp duty must also be complied with.