How to Verify a Property before purchasing it

It is always necessary to maintain a list and organise a process properly. This helps one to systematically go ahead with the process of buying a house. Finding a property that is free from all sorts of legal complications is quite a feat to achieve. With the rapid growth of the real estate sector, the number of disputes over land have also increased. To ensure that the process of transfer of ownership is easier for all the parties involved, here is checklist for verification of property you are shortlisting is worth investing or not:

1. Check for Legal Title Papers:

It is essential that you check the legal documents of a property before you make the payment for it. The most important of which is checking if the title is clear or not and regarding this it is advisable to consult a property lawyer.

2. Ensure if the Property in Question is Approved by Major/Valid Banks:

One sure way of knowing if the property is more or less legally clear is to see if it has been approved by leading banks. Banks will only approve of properties which have legal clearances with valid documents.

3. Knowledge of Mortgages on the Property (if any):

An individual who owns a property can avail of a loan against it. While buying a property (in case of resale), be sure to make a thorough research if the property has been mortgaged or not.

4. Check the Constructed as well as Sanctioned Areas:

Before deciding on a property, ask the builder for the sanctioned plan and compare it with the actual built up area. This is because sometimes there are illegal constructions that are not in accordance with the sanctioned plans.

5. The Encumbrance Certificate:

An encumbrance certificate contains the details of previous registrations which can be availed from the sub registrar’s office. It has a multifaceted advantage, it is a proof of free ownership and it also testifies that the property is free of any legal dues or mortgages.

6. Regular Payment of Property Tax:​

Since paying the property tax is an annual thing, it helps to make sure that all the papers are in order. It shows a sense of responsibility on the part of the owner and also is an assurance of his having valid documents.

7. Check if the Property has a Registered Society:

The presence of a registered society (in case it is a completed construction) of a property increases its chances of being legally clear. Since the process of registering a society itself involves a legal process, it makes it necessary to have all its papers in order.

Benefits of this verification are plenty, within which a few important ones are assurance that the property in question is free from litigation, easier process of borrowing loans against a property, avoidance of fake or invalid transactions or forged documents being presented during transfer of ownership etc. Due diligence, presence of mind and awareness of your rights while buying a property in your name can certainly protect you against dark and illegal practices by developers and sellers. In an industry that still lacks transparency, it is best to thoroughly ensure the validity and legalities of its documents.


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