Wednesday, 10 September 2014

SAFEGUARDS FOR PROPERTY BUYERS

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

Everyone dreams to have some shelter of his/her own throughout his/her life time.  But, unless the property buyer adopts safeguards whereas finalizing the alter the seller; he/she is possibly to land in uncalled for proceedings, loss of your time and cash. For peaceful possession and delight of the property by the buyer, the property ought to have clear marketabletitle free from encumbrances ideally with vacant possession.

To know whether the property is free from proceedings and therefore the vender features a clear and marketable title of the property, it's necessary to look at the title deeds of the property terribly religiously. Possession of the seller is often derived from the title deeds and revenue records. Mere tracing of the title on the idea of the records obtainable wouldn't fulfill. Examination ofthe genuineness of the records, identification of the property, corroboratory of all the first documents with the records of the involved Governmental authorities, supplying notification in newspaper and physical possession of the title of the property area unit a number of the vital functions needed to be performed whereas scrutinizing the property documents. 


The below mentioned safeguards could to a precise extent defend the interest of the purchasers:

The first and foremost exercise the buyer or his advocate needs to undertake before moving into any agreement with the seller is to scrutinize the title deeds of the property into account. Since it is that the duty and responsibility of the purchaser's advocate to safeguard the interest of his shopper, he shall got to circumstantially scrutinize the title deeds of the property to determine the marketable title and genuineness of the documents. Whereas thus doing, the advocate shall examine the risk concerned within the dealings and guide his shopper appropriately. 

Origin of the Property

Tracing of the origin of the property could be a important step within the scrutiny of property documents. Origin of the property is additionally known as “Root of Title”. It is that the safest thanks to confirm the origin of the property and trace its marketable title. It’s necessary to look at the title of the property for a minimum amount of forty two years.In cases of adverse possession against people or conflicting claims, apart from mortgage, documents covering a minimum amount of quite twelve years are essentially to be checked.As regards the amount of limitation against the govt, documents covering a minimum amount of thirty years should be checked.  If someone is enjoying the property for quite thirty years, he can get title by adverse possession against the govt underneath the Limitation Act, 1963. As per Section ninety of the Indian proof Act 1872, the document dead thirty years before is likely to be valid.These are all the final principles. However, the amount years spoken on top of would vary relying upon the documents created obtainable for scrutiny.

Subsequent Transfers

After ascertaining the origin of the property, there ought to be a organized examination of resultant events of transfer and different transactions with reference to the property in an exceedingly consecutive order. Here, the purchaser's advocate needs to terribly rigorously investigate all aspects from  legal angle on however the property was transferred from the previous homeowners until it reached the hands of the gift owner. The transfer could also be by possession, inheritance, settlement, will, sale, mortgage, release, gift etc. The advocate needs to rigorously examine these deeds and different supporting documents like revenue and different property records to induce a transparent image on the valid marketable title of the seller. Verification of identity of the parties and their family connections, ascertainment of existence of any court litigations/proceedings unfinished before any court of law or different legal forums or authorities together with revenue authorities in respect of the property into account is additionally necessary.

Statutory Clearance

All the statutory clearance needed for a good transfer of the property in favor of the buyer should be obtained before execution the Deed of Conveyance. The buyer should be apprised of the necessity of getting statutory clearances from numerous authorities like revenue, land reforms, income tax, etc., for a good transfer of the property in his favor. 

Present standing

Present standing of the property is that the most vital facet to be looked into before getting the property.The advocate who has expertise in property documentation will simply determine on whether or not this owner has valid and marketable title over the property or not.For this purpose he shall examine the title deeds and different supporting documents obtainable with the seller. At identical time, the advocate shall conjointly determine as to the existence of the legal heirs of the seller.  If there exists legal heirs and if they're major in age, the advocate shall make sure the legal heirs presence whereas execution the Deed of Conveyance. If they're minors, the seller needs to get the permission from the court before execution the Deed of Conveyance.

In some cases the seller could conceal the actual fact of existence of legal heirs. In such cases, the advocate should raise the seller to provide either the succession certificate or the family kin tree issued by the revenue authority. If necessary he should see the family identity card for sensible clarification. 

The advocate should determine in whose name the Khatha stands, whether or not the khathedar possesses up-to-date tax paid receipt in his name and up-to-date Encumbrance Certificate to ascertain his right, title and interest within the property. The advocate needs to check the Encumbrance Certificate covering a relevant amount, usually from twelve years up to forty three years to determine whether or not any charge is made on the property and therefore the form of charge, and whether or not such an encumbrance is presently subsisting or not. Municipal and different revenue authorities to keep up records from that it may well be determined on who is presently in possession of the property in keeping with their records, what's the number of tax collectable on the property and up to what amount tax has been paid.  

Genuineness of documents

After completely scrutinizing the property documents, the buyer or his advocate needs to cross check all documents provided with by the seller with the records of the involved departments to make sure that the documents made by the seller area unit genuine; that they're originated from the involved departments which they're not pretend. Additionally, the advocate needs to determine from the department whether or not there's any notification or proceedings against the property or this owner. Within the case of buildings, it should be ensured that demolition notice has not been served  on the seller.

Identity of the property

The identity of the property is to be distributed by visiting the spot. The measure of land mentioned within the documents should tally with actual physical measure.It should even be ensured that there exists no encroachment of the property.Just in case there exists encroachment,the measure of the obtainable land should be recorded and this should be mentioned within the Deed of Conveyance.The boundaries as shown within the schedule of the property should be physically verified on the spot. Also, the buyer could build enquiries tactfully with the adjacent property homeowners regarding the possession of the property he's proposing to shop for.

Paper Notification

There could also be some gray areas within the property title of the seller, like unfinished litigations, agreements entered into by the seller with others, claims of legal heirs, etc., on account of that even once examining the assorted documents, the Advocate might not be ready to determine whether or not the property is really an utterly free from any claim. Therefore, the paper notification might facilitate the buyer to induce response from the genuinely affected party that successively would facilitate the buyer to grasp the clear and marketable title of the seller.

Though paper notification is nonobligatory, it's continuously sensible to give notice in an exceedingly leading native newspaper regarding the buyer's intention to buy a specific property to safeguard the interest of the buyer.

Physical Possession

In the case of a vacant website, the buyer could, with the permission of the seller fence the property with wire or he could construct a compound wall and place a structure before purchase of the property to point possession of the property.

After moving into an agreement to sell, the buyer needn't shut his eyes shut and proceed to finalise the deal. Therefore, even once moving into an “Agreement to Sell”, the buyer should still build enquiries to create doubly positive of the valid and marketable title of the seller. Upon such enquiries if it's found that there are defects within the title of the  property, that don't seem to be discernible within the normal course examination of documents, the buyer might withdraw from the dealings even once there exists an agreement to sell. However, a mere suspicion of fraud that can't be well-tried won't build the title uncertain and therefore the buyer cannot disapprove the title thereon ground.

A reading of the on top of would head to show that tracing of title of property could be a specialized job. Services of well old advocates in property documentation would vastly facilitate the buyer in his peaceful possession and delight of property free from proceedings.

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