After RERA guidelines in place, the Indian real estate market has become more secure and increasingly attractive for property investments. With this growth, buying a home or an investment property in India can be a smart decision, but it comes with responsibilities.
As you go through the process, one of the most essential steps is to conduct due diligence, and verify the title of property. Understanding the title helps you avoid legal complications, disputes, or even the risk of fraud.
However, you may wonder –
- What exactly is the title of property?
- Why is it so important?
- And how to check title of property before making a purchase?
In this blog, let’s understand what a title of property is, what its types are, and a step-by-step guide on how to check title of property.
What is a Title of Property?
Before you begin the process of checking a property’s title, it’s important to first understand what it actually means.
A title of property is a legal document that proves who owns a property and what rights they have over it. For example, it gives the owner the legal right to sell, transfer, or lease the property.
You can acquire the title of property in different ways – through a sale deed (purchase), a gift deed (inheritance or transfer), or other legally valid agreements. Each of these comes with its own deed that acts as proof of ownership.
Moreover, having a clear title of ownership makes the property free from legal issues such as,
- No pending loans or mortgages on the property,
- No disputes with other people claiming ownership,
- No unpaid property taxes or dues,
- No legal restrictions regarding the use of the property.
When a property has a clear title, the buyer’s ownership is legally secure. And once registered under RERA, those rights are further protected, reducing the chances of disputes or fraud in the future.
Freehold vs Leasehold Property Titles
Buying a property in India isn’t just about signing a sale deed and making the payment. You also need to understand the kind of ownership you are getting. This is where the difference between freehold and leasehold property titles becomes important.
In India, these two terms determine the extent of your control over the property, the rights you enjoy, and even the ease of reselling or mortgaging the property in the future.
Here is a detailed comparison between the two:
Control and ownership
- Freehold Property: With a freehold, you get absolute ownership of both the land and the structure. The property is yours in full, and you can sell, transfer, or renovate it without seeking prior approval (subject to local laws). Ownership is permanent and can even be passed down through inheritance without restrictions.
- Leasehold Property: In this case, you are essentially leasing the property from the landowner (which could be an individual, government authority, or private developer) for a specific period, commonly 30, 60, or 99 years. Once the lease term ends, ownership reverts to the landlord unless you renew it by paying renewal charges.
Security
- Freehold: This offers maximum security since you are the sole and permanent owner. There’s little chance of disputes, and the property is easier to sell as buyers prefer clarity in ownership.
- Leasehold: Whereas leasehold titles can be unpredictable, security is comparatively weaker. Since the landowner retains ultimate rights, you might face restrictions on transfers, resale, or modifications. If the lease is nearing expiry, the property may lose value in the resale market.
Costs
- Freehold: Initial costs in case of freehold properties are always higher in comparison to leasehold properties, because you are paying for both land and construction. However, there are no property costs in the long run other than maintenance costs, property tax, etc., that you have complete control over.
- Leasehold: The initial cost is lower, making them attractive for budget-conscious buyers. But in the long run, you may have to pay ground rent, lease premiums, and follow the landlord’s terms for maintenance and repairs. Renewal of the lease also comes at a significant cost, which can be financially burdensome.
Loans
- Freehold: When it comes to loan choices, freehold ones are the ideal option. Banks and financial institutions readily approve loans for freehold properties, as they are seen as secure investments with clear ownership rights.
- Leasehold: Loans for leasehold properties are harder to secure, especially if the lease tenure remaining is less than 30 years. Banks hesitate to finance them due to ownership uncertainty. Even if approved, the loan-to-value ratio may be lower.
Practical Example
- If you purchase a freehold flat in Jaipur, you can live there permanently, sell it at any time, and even pass it down to your children without restrictions.
- However, if you purchase a leasehold flat in Delhi NCR with a 60-year lease, you may be required to pay renewal charges after the lease term expires. Additionally, if only 10–15 years remain on the lease, the property’s resale value will drop significantly.
Freehold properties give you full ownership and long-term stability, making them ideal for end-users and investors alike. Leasehold properties may look cheaper initially, but they come with conditions and uncertainties that every buyer should carefully evaluate before purchase.
Importance of Checking The Title of Property
India’s real estate market is booming, and luxury housing is now seen not just as a lifestyle upgrade but also as a solid long-term investment. But before you buy, one step you cannot afford to skip is checking the title of property. An unclear or disputed title can affect:
- The property’s long-term value
- Smoothness of transactions
- Your reputation as a buyer
- Protection of your money and investment
This is why knowing how to check title of property is so important. Here are the key reasons:
- Establishes Ownership: Verifies who the real owner is and confirms legal rights over the property. A proper check also brings clarity in case of disputes or overlapping claims.
- Ensures No Encumbrances: Title verification helps you uncover whether the property is under mortgage, has pending loans, or faces alternate ownership claims. This protects you from hidden liabilities.
- Boosts Marketability: If you plan to resell the property in the future, having a clear title helps attract the right kind of buyers at a better price.
- Ensures Compliance: A clear title means the property complies with local laws and regulations, making your purchase legally sound and valid.
How to Check Title of Property Before You Buy
Here’s a clear and practical step-by-step guide on how to check title of property before making the purchase.
Step 1: Collect Required Documents and Inspect The Title Deed
To begin the process, you will need to collect all relevant documents related to the property. These include:
- Sale deeds (current and past ones)
- Tax receipts
- Encumbrance certificate (EC)
- Possession certificate
Now, carefully examine the title deeds. This document identifies the current owner of the property and details how they acquired it. Go back through the older deeds, too, and see if the ownership has passed smoothly from one person to another. If you notice missing papers or unclear transfers, that’s a red flag.
Step 2: Conduct a Legal Title Search
Next up is a legal title search. This is conducted to identify any encumbrances on the property. A title search involves a review of the property records to establish a clear ownership history.
- Check past 30 years: Look at the ownership records of at least the last three decades.
- Look at public records: Visit the local land registry and revenue department to see if the property details match.
- Litigation Check: Make sure a property is not involved in any ongoing legal issues or court cases.
- Loans and mortgages: See if the current or past owners took loans, mortgages, or liens against the property that are still unpaid.
Step 3: Examine the Chain of Ownership
Ownership should flow like a straight line, one person to the next, without breaks. Reviewing the chain of ownership is crucial to ensure seamless and legally sound transfers over time.
- Continuous Transfer Records: Ensure that every past change in ownership must be documented through registered sale deeds or gift deeds.
- Legal Heirs & Succession Validity: As the buyer, you must ensure that any inheritance or succession is legally documented and undisputed. Alternatively, it might lead to future issues, putting your ownership rights at risk.
- Gaps & Discrepancies: Identify any irregularities or missing information. Failing to address it could indicate potential ownership challenges.
Step 4: Check Registration & Revenue Records
Now it’s time to officially cross-check things. Head to the sub-registrar’s office and check if the property details match what’s written in the documents. This is to verify the registration status of the property in question. You can also verify the accuracy of the details mentioned on the sales deed and EC.
Moreover, inspect revenue records related to the property. The Record of Rights (RoR), Patta, or Khata certificates allow you to confirm the ownership and track revenue payment history of the property.
Verifying this information will help you verify the legality of the title of property. Moreover, ensure that it aligns with government records.
Step 5: Hire a Legal Professional (If Needed)
Sometimes the papers can be confusing, or the history may have gaps. In such cases, hiring a property lawyer is a wise move. They can:
- Verify documents deeply
- Spot hidden risks
- Guide you if the deal looks risky
Spending a little extra on a lawyer now can save you from losing lakhs later.
Documents Required While Checking The Title of Property
Here is a checklist of the documents you need to check title of property:
- Mother Deed: This is one of the most essential documents, as it records the origin and complete history of the property. It shows how ownership has been passed down from the very first owner to the current one. Without a clear title deed, it can be challenging to determine whether the property has a clean and legal background.
- Sales Deed: The sale deed acts as proof of the actual transfer of ownership from the seller to the buyer. It confirms that the transaction is legal and that the buyer now holds the rights to the property. This document also protects the buyer in case of any disputes in the future.
- Encumbrance Certificate: Issued by the Sub-Registrar’s Office, this certificate confirms whether the property is free from financial or legal burdens. It will show if there are any pending loans, mortgages, or court cases linked to the property. Checking the EC helps you know if the property is safe to buy.
- Khata Certificate and Khata Extract: These documents are linked to municipal records and are important for proving that the property is officially recorded with local authorities. They also confirm that property taxes are being paid regularly and that the property can be used for legal transactions such as sale or transfer.
- Land Record (Patta/Record of Rights): This government-issued document outlines who owns the property, the type of land it is (residential, commercial, or agricultural), and any dues or liabilities associated with it. It provides clarity on the status of the land as per official government records.
- Power of Attorney: If the property is being sold by someone other than the actual owner, a valid Power of Attorney is necessary. This shows that the person selling has the legal right to act on behalf of the owner and transfer ownership to the buyer.
Legal Tips You Must Know When Checking the Title of Property
- Don’t compromise on hiring a good lawyer
If you decide to bring in a lawyer, make sure you choose someone with a solid reputation in property matters. It may cost a little more, but hiring a trusted professional can save you from more significant financial or legal troubles later. At the same time, don’t rely completely on them; do your own background checks, too, so you’re fully aware of the situation.
- Remember who your real estate agent works for
Similar to hiring a lawyer, you will need to conduct your document verification if you have hired a real estate agent as well. Because a real estate agent may appear to be on your side, but in reality, they are also working to close the deal for the seller. Their main goal is to complete the transaction smoothly. That’s why it’s wise to verify every document yourself, even if the agent says everything is in order.
- Stay informed about local laws and RERA regulations
Property laws vary from place to place. Before finalizing a deal, verify if the project or property is registered with the Real Estate Regulatory Authority (RERA) and if it complies with local regulations. Staying informed about these rules helps you avoid unpleasant surprises later.
- Rely only on official and trusted sources
When verifying ownership or registration details, don’t depend on verbal assurances or unverified online sources. Stick to state RERA portals, official government websites, or documents issued directly by the registrar’s office. This way, you’re basing your decision on information that cannot be easily disputed.
- Always double-check documents and registrations
Go through every document carefully, from the sale deed to encumbrance certificates and municipal records. Look for consistency in names, dates, and signatures. A small discrepancy today could turn into a big legal problem tomorrow, so it’s better to spot it before you buy.
FAQ’s
How to check title of property?
To verify the title of property, you will need to visit the revenue department or the sub-registrar’s office where the property is registered. Here you can perform a property title search to identify any past disputes or issues.
What is the best proof of home ownership?
The best proof of ownership you can rely on is a sale or any other legal deed or official record. Additionally, you can rely on mortgage or homeowners’ insurance documentation.
How to identify a fake sale deed?
Key steps to identify a fake sale deed include:
- Checking for inconsistencies in the document’s details
- Verifying the registration with the Sub-Registrar’s office
- Examining the chain of title
- Confirming an encumbrance certificate
Can legal heirs challenge a sale deed?
Yes, legal heirs can challenge a sale deed. However, they generally cannot challenge a valid sale deed solely because they are a legal heir.
Moreover, their success depends on proving their legal grounds, fraud, or lack of authority by the deceased seller.
What makes a sale deed invalid?
A sale deed is deemed invalid unless all sellers involved in the transaction of property have attested. This signifies the seller’s consent to transfer the ownership rights of the property to the buyer. Failure to do so will result in legal issues or disputes related to the property’s transfer.
What is EC in property?
An Encumbrance Certificate (EC) is a certificate issued by the sub-registrar’s office. It is a legal document that is proof that the property is free from mortgages, loans, or other such obstacles.
Conclusion
Conducting thorough due diligence is essential and requires the right resources. Therefore, here is an overview of how to check title of property:
- Obtain Required Documents and Inspect The Title Deed
- Conduct a Legal Title Search
- Examine Chain of Ownership
- Check Registration
- Hire a Legal Professional (If Needed)
Additionally, you can refer to the document checklist we have provided to make this intensive process straightforward. Also, check out residences by Trimurty Builders and Developers. Top builders in Jaipur with one of the most compliant records with RERA.