Achieving his long-lived dream of buying a house, Animesh accidentally skipped verifying some property documents. Later, he found out that the property is already involved in some legal dispute. To get out of it he had to spend thousands of rupees on lawyers and documentation. This huge mistake by Animesh turned into a litany of reasons why he regrets his decision to buy a property.

Buying property is one of the exhaustive tasks for an individual. It requires extensive research of the property, the seller's intentions, the location and so on. There is one important factor which sometimes gets neglected in this process. And that is “Verifying Property Documents”.  There are people like Animesh who are not aware of the consequences of this huge mistake.  

To avoid these mistakes, it is important to have adequate knowledge of what is the procedure of verifying the documents, what documents to verify, the consequences and the benefits of verifying property documents. Let’s get an understanding of the topics in this blog ahead! 

Documents to Verify 

Below mentioned documents are required in the verification process of Property Documents: 

1. Gift Deed 
2. Non-Testamentary Instruments 
3. Verification of any payment or consideration for creating, assigning, declaring, or limiting any right, title, or interest in immovable property. 
4. Immovable Property Leases 
5. Contracts for the Transfer of Immovable Property (Title Deed, Encumbrance Certificate, Occupancy Certificate (OC), Property Tax Receipts, Sale Agreement).

Consequences of Not Verifying a Property Document  

When the Property Documents are not properly verified, it can have bad consequences in the future for the buyers. Some of the consequences are mentioned below: 

Legal Disputes

Legal Disputes are one of the major consequences that individuals face when they have not verified property documents. Buying a property that is still under litigation is a nightmare for the property owners. It can take years to solve these expensive legal matters. 

Financial Loss

Without proper verification of resources, buyers can get trapped in fraudulent transactions. These transactions can lead to major financial losses for buyers. The scams can lead to loss of money that might not be recovered. 

Difficulty in Acquiring Finance

Due to the unreliability in property documents caused by unclear and incomplete verification, buyer sometimes find it challenging to secure a financer for home loans. Since the risk associated with the property is higher, the interest rates also rise making it difficult to obtain the required funds. 

Eviction Risks

Imagine buying a new property, then getting eviction notice. This situation arises when the property is sold without the consent from co-owner, or someone sold it without the legitimate ownership rights. It can also result in financial, logistical and emotional losses. 

Tax and Liability Issues

Checking previous year tax reports should be an essential task before buying a property. If there are any dues not paid by the seller, then it will pass on to the buyer. This will create a nuisance in the life of the buyer. The buyer may have to pay up the penalties. 

Delayed Ownership Transfer

With all the issues that arises without proper verification of property documents, it therefor becomes a known fact that delay in ownership transfer will eventually take place. Buyers may have to pay additional charges like rent or maintenance costs, without having the full ownership. 

Benefits Of Verifying Property Documents 

Verifying a document adds transparency. Following are some benefits of Verifying a Property Document: 

1. Ensures Legal Validity

When the documents are verified properly, it ensures the legal validity of the transactions. It shows that the transaction complies with the rules and regulation. 

2. Avoid Property Fraud

One of the great benefits of Verifying Property Documents is that it avoids any type of property fraud. Through proper verification, buyers can prevent falling for any property scams.  

3. Proof of Ownership

Verified property documents acts as a proof of ownership. If your documents are verified, then they must be in the records. So, in case any of the original documents get lost or destroyed then the records can be used as a valid of ownership.  

4. Reduces Legal Disputes

Proper verification property documents reduce the lengthy and exhausting process of false claims and legal disputes. Verification of the documents ensures that the property title is free of any encumbrances, helping the buyer in avoiding any misleading activities. 

5. Promotes Transparent Transactions

Transparency in the property transactions serves as a very important benefit. Being transparent throughout the process enhances trust among the buyer and the seller. It makes the transaction seem very genuine and legitimate. 

6. Secure Transfer of Property

With accuracy in property title verification, the transfer of property becomes a smooth process. 

7. Increases Credibility

Verified documents increases the credibility of the transactions. This leaves no chances for anyone to challenge the ownership of property in the future. The verified documents create a layer of protection against any allegations of the fake authenticity of the property transactions. 

Routine Procedure 

1. Verification of Title Deed

Title deed is the evidence of ownership of a property. It is a very crucial legal document. Sub-Registrar's office verifies the deed. The name of the seller should be in the deed.  

Many states offer online property records via their land revenue portals, which enable additional cross-checking with official databases. Based on jurisdiction, one can visit these sites and verify title deed. 

2. Encumbrances Certificate

It is a legal document which clarifies that the property does not endure any legal or financial charges.  One can reach out to the Sub-Registrar's office in their jurisdiction to obtain the EC by providing details of the property. 

3. Sales Deed

Sales deed is an essential document in property transaction. It is a legal document that represents the transfer of ownership of property from seller to buyer. Sales deeds should have all the accurate information that is required in the registration process.  

 You can take the Sales deed to either Sub-Registrar or check the information on RERA (https://www.rera.delhi.gov.in/user/login?destination=node/1411)  website which assists in rectifying legal compliance for properties. Project approvals, completion dates, and builder's liabilities are all transparent for properties that are registered with RERA.     Thus, before completing the sales deed, buyers should verify whether the builder has complied with RERA requirements. 

4. Approved Plan Checking

Builders are required by RERA to submit approved building designs and follow them throughout the construction process. Through RERA's online portal, buyers can validate that the building conforms with these approved blueprints, ensuring the project satisfies local standards. 

5. Check Property Tax Dues

Ensure all the taxes due are paid. The tax receipts help in authentication of the property. The buyer can obtain and request a copy of tax receipts from the local municipal corporation as per your jurisdiction. 

6. Occupancy Certificate

It is issued by a local municipal corporation or development authority. It serves as proof that the property is constructed in compliance with all the rules and regulations. It is crucial to check the Occupancy certificate during the property transactions. The buyer can obtain and request a copy of the OC from the local municipal corporation as per your jurisdiction. 

7. Land Use Zone

Land Use Zone Certificate outlines the specific regulations and restrictions that apply to the property. The buyer can obtain the land use zone certificate from the Municipality or Town Planning Department to make sure the property's proposed use conforms with local zoning laws. This check makes sure that the land-use classification of the property matches the uses you have in mind, such as residential, commercial, or agricultural. 

8. Seller and Agents Identity to be verified

To prevent any kind of fraudulent activity, you should verify the identity of the seller. The identification verification of agents and builders is enforced by RERA. On the RERA website, buyers can check the seller or developer's record and confirm that they are registered with RERA. This promotes an open purchasing procedure and lowers the possibility of fraudulent transactions.  

9. Project Compliance Check

The project's compliance with the Real Estate (Regulation and Development) Act, 2016, which sets regulatory criteria in many states, is guaranteed by RERA registration. To protect the buyer's interests, this involves confirming compliance with project schedules, completion requirements, and builder's disclosures. Thus, the buyer should check the project report on RERA website during the verification process. 

Online Property Documents Verification Portals  

Conclusion  

Verifying property documents not only safeguards you from fraud but also builds a foundation of transparency and security in your transaction. By following the recommended verification steps and using available online resources, buyers can minimize risks and ensure a smoother property purchase process. Taking the time now to confirm every detail is a worthwhile investment for a future of peace and stability in your new property.     DigiLawyer is an AI tool that helps citizens, law students and lawyers with innovative legal solutions. This AI platform aims to empower the citizens with affordable legal solutions minimizing the cost spent in the litigation process.