A Complete Guide To Property Verification In India

As more and more individuals in India spend a lot of money on real estate, whether for commercial or residential purposes, investing in land and any types of property is becoming more and more popular. People put their entire life earnings and resources into buying land or other property, so it is crucial to conduct legal due diligence on the property. The buyers benefit from being protected against fraud and forgeries.

Everyone can buy real estate for any reason, whether it be material or intangible. When someone owns the property, they have the unrestricted freedom to use, sell, or rent it as they see fit. The buyer and seller's transaction is vital, and it should be started sensibly to prevent future issues.

What is Property Verification?

Property verification is the process of verifying the legal authenticity and ownership of a property. It involves checking the legality of the property, including the ownership details, encumbrances, and other legal disputes associated with the property. Property verification is an important process that should be conducted before buying or selling a property to ensure that the property is free from any legal complications, such as liens, mortgages, or disputes, and that it can be legally transferred to the buyer. The property verification process is typically conducted by a lawyer or a legal expert who specializes in property transactions.

Importance of Property Verification

Property verification is crucial for both buyers and sellers of properties. The following are some of the reasons why property verification is important:

• Verify Ownership: Property verification ensures that the property is legally owned by the seller and that the seller has the right to sell the property.
• Avoid Legal Disputes: Property verification helps to avoid legal disputes and complications that may arise in the future, such as ownership disputes, liens, or other encumbrances.
• The authenticity of Property Documents: Property verification helps to verify the authenticity of the property documents, such as the sale deed, title deed, and other legal documents associated with the property such as Gift Deed etc.
• Avoid Financial Loss: Property verification helps to avoid financial loss to the buyer by ensuring that the property is free from any legal disputes or encumbrances that may result in financial liability.

Steps Involved in Property Verification

A property expert lawyer can assist a person who wishes to perform a legal verification of a property. The lawyer will file a report with the sub-office registrars for 12 or 30 years.

Once this report has been confirmed and the attorney has access to the documents, they verify each one to confirm the sale and land title transfer. The lawyers examine the seller's rights and confirm that the stamp duty was paid.

The legal verification procedure might take a long time and be difficult, but it is necessary to make sure that a house loan transaction goes smoothly and successfully. This is how the procedure appears to be.

• Documents are submitted by the borrower to start the procedure.
• The purchase agreement, invoices for property tax payments, and blueprints or floor plans must all be provided in original form.
• While beginning the application process, the applicant may provide copies of pertinent documents; nevertheless, during the on-site technical verification, the applicant will be required to present the original documents with the necessary seals.
• The lender then conducts a legal investigation. A team of professionals, including lawyers, examines the NOCs, title documents, and other papers.
• There are two stages to the legal verification process. The property is looked at after the title report has been generated.
• The following phase in the procedure is technical verification. Before approving the loan, this is done to inspect the property's physical state. Experts visit and inspect the property. For the loan to accurately reflect the worth of the property, the findings are then used to value the property.

Documents required for legal verification of the property

The legal verification of property necessitates several documents. Which are:

Deed of Sale or Sale Deed

This is unquestionably the most important document in the purchase and sale of real estate. It serves as proof of title ownership of the property, making it the original document and one that must be established as such. The place where the land is located has a sub-registrar where it is registered. 

Sales agreement

Every aspect of the property, the terms, and conditions, the dates of the purchase and sale, the clauses, the method and amount of payment, etc. are all mentioned in the agreement of sale. This document can be used to obtain a mortgage and when buying a house.

POA (Power of attorney)

If someone is acting on behalf of the owners, they must present the original paperwork attesting to that fact. This is required by law to purchase and sell certain properties.

Will/Testament

A will is a legally binding document that outlines the intentions of a property owner. Together with their names and the title of the executor, who will have the absolute power to act, the distribution of their property is listed.

If any are available, partition deeds and undisputed deeds are also necessary for the legal validation of a property.

Line up of Land documents

• Property Title: The sub-office registrar has information about any ownership of the property.
• Mortgage papers: All mortgages must be disclosed to the buyer and verified lawfully.
• Encumbrance Certificate: A certificate of encumbrance is produced when a property is freed from an encumbrance.
• Recent bills and tax receipts: Original documents must be presented along with the most recent bills and tax receipts.
• Khata certificate: Depending on the state, case, and property referenced, other documents may be required.

Advantages of Property Verification

The legal verification of a property gives the owners several advantages. And these are:

• The legal verification of a property acts as a reminder and proof that the property subject to the transaction is clear of any outstanding legal matters or lawsuits.
• Obtaining loans against property is made easy by the legal verification of the property.
• The necessary guarantee that the seller can complete a transaction regarding the property because he has the title is provided by the legal verification of the property.
• If the seller has checked the property's legality, any forced or false documentation or actions can be avoided.
• The same property is frequently seen being transferred through the same vendor in deals, who forges paperwork to trick customers. If the legal verification of a property is properly carried out, this can be avoided, and in cases of fraud, they must seek legal counsel.
• If the property is legally verified, any incorrect information regarding properties can be prevented during loans and mortgages.

Role of a Lawyer in Property Verification

A lawyer or advocate plays a crucial role in the property verification process. They are legal experts who specialize in property transactions and have the expertise and knowledge to identify and mitigate legal risks associated with a property. The following are some of the roles and responsibilities of a lawyer/advocate in the property verification process:

• Review Legal Documents: The lawyer/advocate will review all the legal documents associated with the property, including the sale deed, title deed, and other relevant documents to ensure their authenticity and legality according to Property Laws.
• Verify Ownership: The lawyer/advocate will verify the ownership details of the property, including the seller's right to sell the property.
• Check for Encumbrances: The lawyer/advocate will check for any outstanding debts, mortgages, or liens on the property that may result in financial liability for the buyer.
• Conduct Legal Due Diligence: The lawyer/advocate will conduct legal due diligence to ensure that the property is free from any legal disputes or complications.
• Draft and Review Agreements: The lawyer/advocate will draft and review agreements related to the property transaction, including the sale deed, lease agreement, and other relevant documents.
• Attend Property Registration: The lawyer/advocate will attend the property registration process to ensure that the legal transfer of Property ownership is done correctly and legally.
• Provide Legal Advice: The lawyer/advocate will provide legal advice to the buyer/seller on legal issues related to the property transaction.

In summary, a lawyer/advocate plays a vital role in the property verification process by ensuring that the property transaction is legally sound and free from any legal disputes or complications. It is essential to engage the services of a legal expert or lawyer to conduct the property verification process to mitigate legal risks associated with the property transaction.

Conclusion

Every time a person enters into a trade or an agreement, they need to be aware of every document and provision that is offered, and property should have its legality confirmed. This lessens the likelihood of risk and upcoming disputes. Since a layperson might not be familiar with so many legal documents and rules, they might think about seeking legal assistance on these subjects. 

FAQs

Can I perform property verification on my own?

While it is possible to perform property verification on your own, it is not recommended. Property verification involves a comprehensive analysis of legal documents, property ownership, and other legal aspects associated with the property. Without the expertise and knowledge of a legal expert, you may miss critical details that could result in legal disputes or financial liability in the future.

Is property verification mandatory in India?

Property verification is not mandatory in India, but it is highly recommended. Property verification is a process of verifying the legal status of a property to ensure that it is free from any legal disputes or complications. It involves a comprehensive analysis of legal documents, property ownership, and other legal aspects associated with the property.

Is it possible to verify property documents online?

Yes, it is possible to verify property documents online in India. The Government of India has launched various online portals and services to facilitate the property verification process.

What is the verification cost of property documents?

The cost of property document verification can vary depending on various factors, such as the location of the property, the complexity of legal documents, the services of the legal expert or lawyer engaged for property verification, and other additional charges such as stamp duty, registration fees, and other statutory charges.

In India, the cost of property document verification typically ranges from a few thousand rupees to tens of thousands of rupees, depending on the scope and complexity of the verification process. The cost may also vary based on the mode of verification, such as online verification or physical verification.

How long does the process take?

The property document verification process typically takes anywhere from a few days to a few weeks, depending on the above-mentioned factors. However, in some cases, the process may take longer if there are legal disputes or complications associated with the property.