Saturday, 27 September 2014

TRACING OF TITLE OF IMMOVABLE PROPERTY

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


Transfer of immoveable property by sale, gift, exchange, inheritance, Will, etc may be a terribly phenomenon. Out of those varied modes, sale involves payment of thought (purchase price) and each customer hopes to induce good absolute title. But the vendor cannot pass away a far better title than what he has; any defects in his title will pass away to the customer, however customer having paid tidy quantity desires an ideal unencumbered marketable title.

But several purchasers don't get the title of the vendor verified by advocates who has specialised data and knowledge on property matters, usually place confidence in property agents, middlemen and assurance of trafficker and seller’s advocates judgement.Though they pay lakhs of rupees on purchase of property, they hesitate to pay a couple of thousand rupees on verification of title and afterward land in bother.  Most of the days power of lawyer is that the solely document that is handed  over to the customer. a number of the purported builders refuse to offer title papers to the customer, dictate the terms and demand that property be purchased on their own advocates certificate of the title that has simply four lines while not touching on the devolution of the property.  They conjointly force the customer to avail of the loan from a specific new generation bank. 

Title:
The title is also freehold or leasehold.In case of freehold title, the owner has absolute title with none encumbrance with power to alienate the property.But just in case of demesne the owner are going to be completely different who had chartered  the property to the tenant surely amount and also the rights don't seem to be absolute and also the tenant are going to be solely in possession of the property for agreed amount. when the lapse of the united amount, the tenant should turn over the vacant possession to the owner.  Such person could transfer solely demesne rights to the customer, if the lease document provides for alienation and also the customer is sure by terms of lease deed


There are completely different varieties of legal ownership of the property;
1. Government lands either Central or State.
2. Individual ownership.
3. Hindu undivided or joint family ownership of property.
4. Property owned by a non-public Company or Public Company punctually official underneath Indian firms Act.
5. Property ownership of a Government Company.
6. Property ownership of a Co-operative society registered underneath Co-operative Societies Act of various stores.
7. Property ownership of partnership companies fashioned and registered underneath Indian Partnership Act.
8. Wakf properties
9. Trust properties together with properties of temples and spiritual endowments.
10. Property ownership of public societies and clubs registered underneath societies Act.
11. Property ownership of Autonomous establishments (Statutory Bodies) like universities, electricity boards etc.


Most common mode of ownership is individual ownership wherever one individual owns the property.
Tracing of title
Tracing of the title suggests that tracing the history of property through documents, Government records, however this owner got property. This is often a really difficult exercise and solely professionals specialized in property laws of Central, State and latest court choices may facilitate to trace the title. though' the vendor is sure underneath section 55(1)(a) of the Transfer of Property Act to disclose any material defects within the property in his title, it's prudent to scrutinize the title to the satisfaction. An honest marketable title is one that is free from all encumbrances, doubts, and provides the holder full ownership rights to the exclusion of the remainder of the planet. The property may need been noninheritable by varied modes, like sale, gift, settlement, will, succession, partition, release, adverse possession, allotment, grant etc.

Mother deed
The tracing of the title should begin by verification of the earliest document offered, that is named parent deed or mother deed. If the earliest document isn't offered, the certified copy should be obtained at the territorial sub-registrar workplace.This earliest document details on however the primary owner got the property. Usually in earlier times, all the landed property was owned by Kings, Jodidars, Inamdars and those them precocious or granted the land to the individuals. Such acquisition document usually is going to be a Order of the Court, Government, Statutory Authority, ruler.  Thereafter, the property may need well-versed completely different hands THAT are referred as go-between parties.  Such documents have to be compelled to be examined in written account order tracing the devolution of property to every of the go-between parties.  The sequence ought to be continuous with none break until the immediate transferer. Just in case of any ape-man, the records at the sub registrar’s workplace revenue department have to be compelled to be verified to the satisfaction, however mustn't be neglected.

But documents like gift deed, partition deed, unleash deed, settlement deed doesn’t seem to be mother documents and also the title of the executants of such deeds should be examined. When tracing the title of the property from the primary owner to the immediate transferer, the most recent document that describes however this owner got the property should be verified. except legal documents like transfer deeds, the revenue records like tax paid receipts, khata, approved plans, encumbrance certificates, mutations, kindred trees and alternative records extracts have to be compelled to be verified. 

The most vital perform of tracing the title is investigation, wherever it's observed that records, documents made truly exist are recorded in books, records of various departments. however advocates certify the title with a narration “based on documents produced” that doesn't confer with the investigation or genuineness of the documents. Usually the advocates settle for the most recent documents while not supporting documents and certify the title that may be a dangerous follow.

Limitations of tracing the title
Though the title is copied to the letter by touching on the documents, revenue records and conjointly investigation, there are bound limitations.  Instances like unfinished cases,government notifications,previous unregistered agreements don't seem to be straightforward to trace. These area unit referred to as hidden areas of the properties.  There is also cases disputing the title, that don't seem to be mirrored within the documents. a correct search in territorial courts would facilitate in tracing such unfinished cases however multitude and hierarchy of courts makes it a troublesome task. a hunt conjointly in Government bodies, Statutory authorities, WHO have authority to amass the land is important to rule out any notification of acquisition.Further, No-objection Certificates from urban development agencies would facilitate.But the likelihood of earlier sale agreements that don't seem to be registered is extremely troublesome to seek out out. Correct enquiries with the seller, neighbour’s and discussions would facilitate.  A paper notification to concern objections and claim on the property to be purchased would be useful.

The encumbrance certificates disclose solely transactions that area unit registered. they are doing not mirror, oral residency, judicial proceeding in courts, tax liabilities, equitable  mortgages that isn't registered, oral partition, oral gift underneath Mohammedan law, unregistered can, liability of maintenance, General Power of lawyer, etc. hard currency within the description of the schedule of the property can lead the registering authorities to issue cipher encumbrance certificates.  EC’s are one in every of the document to trace the title however entirely counting on encumbrance certificate is dangerous.

Period of Verification of title
Most of the advocates trace the title for amount of thirteen years solely. Even several nationalised banks advise their advocates on panel to trace the title for thirteen years and their pro-forma’s also are designed consequently that isn't correct.It is safe and sensible to trace title for a minimum amount of forty two years or a lot of to comb out any probabilities of dispute in title. If a non-public individual lays conflicting claim on any document apart from mortgage the utmost limitation amount is twelve years. the amount of limitation against government is thirty years and execution period is twelve years.

Further, as per section ninety of the Indian proof Act, a document dead thirty years or before is plausible to be with validity dead.The Articles sixty one (a) &(b) of Limitation Act provides a limitation amount of thirty years for redemption. Article 61(b) provides a limitation of twelve years for instituting a suit for recovery of possession against a transferee WHO has taken the property from mortgage holder for valuable thought, and also the limitation is to start to run once the transfer becomes far-famed to the debtor. We have a tendency to shall examine this with relevance an example. 

Limitation amount for redemption of mortgage is thirty years. Suppose a mortgage holder sells the encumbered property when twenty nine years from the date of execution of deed while not the data of the debtor and before the debtor institutes a suit for redemption. The debtor has right to institute a suit for redemption. The debtor has right to institute a suit for recovery of possession of the encumbered property from the customer inside a amount of twelve years when coming back to grasp of the transfer.  Thus, a debtor will lay hands on the property inside 30+12 years of the execution of deed.

The question of adverse possession is additionally relevant during this regard. an individual WHO remains in actual, peaceful, open and exclusive possession of immoveable property for a amount of twelve years or a lot of, expressly or impliedly in total denial of the title to actuality owner is deemed to own noninheritable  possession and title to the immovable property by adverse possession. Thus, it's safe and clear to trace the title for a minimum amount of forty two years a minimum of.

Original title deeds
Generally, solely photocopies of the documents are scrutinised. The advocates ought to impose production of all the initial title deeds for verification, before finalising the judgement to rule out the chances of mortgage by deposit of title deeds that isn't registered. In case of tracing the title of the properties assigned / granted by statutory authorities and government it's enough if the title is copied from the date of allotment to the immediate trafficker and there's no have to be compelled to trace the title for a amount of forty two years.


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