What should be checked before buying a landed property?
K.K.Ganguly
(Querist) 23 July 2011
This query is : Resolved
I have been asked by a builder to make searches & give my opinion about a piece of land at Kolkata which they want to purchase for making flats for which a PSU Bank will finance.The bank will not finance if any loophole in the title of the property is found later on.
1) What searches should I make?
2) What is non-encumbrance certficate? Who issues it?
3) What documents should I check when ownership of such properties are never clear & always complicated.
4)What is the safest way?
I would request the Ld. Experts to please give their valuable opinion.
THANKACHAN V P
(Expert) 23 July 2011
This type of queries cannot be encouraged.
Y V Vishweshwar Rao
(Expert) 23 July 2011
Approach your local Area Civil Side Senior Advocate and take the guidance/help - according to the Title History of the Property!
K.K.Ganguly
(Querist) 23 July 2011
I was a PSU Manager & after retiring at 58 yrs., I am now managing a Law Firm. Apart from M.B.A., I have LLB degree also & has been registered with Bar Council after my retirement.
I engage advocates for getting jobs/searches done & all replies/opinions to clients go under my signature.
Recently one such search proved to be highly inadequate/incomplete & opinion faulty. Searches were made at Registry office basing on a Sale Deed & I gave favourable opinion based on favourable search report by Advocate. Later on it was found that the land was purchased in 1955 against Benami Transaction for which there were Court Cases. I had to cut a sorrow figure since our client had purchased the land based on our favourable opinion signed by me. So, when I got next assignment I posted the above quiry to be doubly sure apart from our advocates search report.
Since last 9 months, after joining the firm I have been posting quiries whenever I found doubts & have been nicely answered by the Ld.Experts including Adv. Devajyoti Barman ( whom I might have to contact personally very shortly for a forthcoming complicated case). This is the first time some Ld.Expert felt that "This type of queries can not be encouraged". I did not understand why.
However, may I get the answers in detail now since I have clarified the reason for my above queries?
Y V Vishweshwar Rao
(Expert) 24 July 2011
Ofcourse ! Advocates will rely up on the SRO Searches and Revenue records , and other Regd and Un-Registered Title Evidence-documents - for conclusion to make the property title clearance ! in rare cases this kind of problems will arise ! Generally the local advocates ( Property Situated local area Advocates ) though not fully , will/may be have some information about local properties / some properties /local legal disputes . In fact an advocate can not Certify that there are no Suits pending or disposed of effecting the title of the Vendor . This is one of the Trouble shooting point in legal opinions - Title verification . Generally We will take an affidavit / sowrn Statement /declaration from the Vendor that there is/was /are/were no suits / cases / litigation/s pending or disposed effecting the title and possession of the Vendor (as the search on a property in court Registers is not that much easy !) we can not say when , where , what kind of suit, is pending / was filed and disposed and what was thew result- unless some one show- or - say- us the Decree / Suit particulars.In my personal View (as I do) I suggest you to take a declaration before sale agreement/ declaration in the sale agreement itself and also incorporate a clause in the sale deed - that the vendor here by declare that there are no suits pending or disposed of effecting the title of the Vendor and there are no legal impediments in the title and & Possession and there are no hidden defects in the title and possession of the Vendor & Vendor under take to reimburse all such losses & damages in this regard - this may some what serve the purpose on the point raised by you in the query !
( Y V Vishweshwar Rao Advocate Warangal AP )
AMIT SANKLECHA
(Expert) 25 July 2011
Hello
According to me Knowledge increases if you share it.
Foll is the document attached which will give you idea about the search report procedure.
For any furthur queries do revert back.
Regards
Amit Sanklecha
A. A. JOSE
(Expert) 26 July 2011
The question nicely dealt with by Mr.YVV Rao and Mr.Amit Sanklecha. I would like to further suggest you to ensure that a proper notice is published in the Newspapers at the local place calling upon all concerned to file their objections, if any, within a specific time-frame, after which only you may give your final title clearance report.
