Due Diligence for acquiring a property
Gagan
(Querist) 13 March 2008
This query is : Resolved
Hello Friends,
Can nayone provide me a cecklist on Due Diligence for purchasing a property.
Thanks in anticipation,
Gagan
Prakash Yedhula
(Expert) 13 March 2008
1. Identify who the seller is and get his full particulars
2. Find out the nature of his right. The sellerGÇÖs right may be absolute, conditional or limited. It is always advisable to deal with absolute rights
3. Trace the title of the seller for at least 30 years. The title of the seller may be by purchase, by inheritance, by partition, by gift, by settlement or by grant
4. Ask for and see all the documents in original
5. If there are any conditions in the documents, examine the conditions, and if the conditions restrict or prohibit the transfer or alienation, do not proceed.
6. Find out the extent of the property and see whether it tallies with the one mentioned in the documents. Verify the survey number, location and boundaries and get the land measured through a competent surveyor
7. Examine the sketch or plan of the property
8. Verify with the revenue records and confirm that the seller is in possession of the property and has paid all the dues and taxes applicable
9. See if necessary orders for conversion is obtained in case the land is sold as house sites in case the property is assessed as an agricultural land
10. Verify the documents with the Encumbrance Certificate obtained from the SRO concerned. EC should be obtained for at least a period of 13 years
11. If there is a building see whether proper planning permission has been obtained. Also verify the completion certificate and latest tax receipt
12. All documents examined, should be original to ensure that the seller has a clear title and that there are no encumbrances on the property such as lien or mortgage or any other charge. Non-availability of any original document should be taken seriously. If the originals might have been lost by misplacement, fire, or by some other means, ask for an affidavit, from the owner to the effect that the original title deeds are really lost and that he has not created any charge, or deposited it with anybody. A paper publication can also be given
Srinivas.B.S.S.T
(Expert) 20 June 2008
it differs with the nature of property you want to purchase. whether it is a dwelling house or vacant plot or agricultural land
Y V Vishweshwar Rao
(Expert) 10 May 2009
Sri Y Prakash suggestions are in detail and I agree with him and Mr Srinivas
The Verification of Propertry title is deferent from cae to cae , and in every case the assessment of the Title and Possession Will be with refewrecne to the docuemtns connected with the proerty and other objections and claims agaisnt the proerty , suits ,pendign Sale agreemtns , prohibitiosn , etc
Y V Vishweshwar Rao
(Expert) 10 May 2009
Sri Y Prakash suggestions are in detail and I agree with him and Mr Srinivas
The Verification of Propertry title is deferent from cae to cae , and in every case the assessment of the Title and Possession Will be with refewrecne to the docuemtns connected with the proerty and other objections and claims agaisnt the proerty , suits ,pendign Sale agreemtns , prohibitiosn , etc
