To determine if a property has a clear title, you need to confirm the following:
1. Verify Ownership Documents
Title Deed (Sale Deed): This is the primary document proving ownership of the property. Ensure that the seller's name matches the records, and that the title is free of disputes or encumbrances.
Encumbrance Certificate (EC): This document confirms that the property is free of any mortgages or loans. You can request an EC from the local Sub-Registrar's office, which will show if there are any outstanding dues.
2. Conduct a Title Search
Title Search Report: Hire a property lawyer to conduct a thorough title search. This will involve verifying the ownership history of the property, ensuring that the title is clear and free from disputes.
Property History: A title search will also help confirm that the seller has legal rights to sell the property, and there are no existing claims from third parties.
3. Check for Pending Legal Issues
Legal Disputes: Ask the seller for confirmation that there are no ongoing legal disputes involving the property. A clear title means the property is not involved in any civil or criminal litigation.
Court Records: You can also check court records or consult a lawyer to verify if the property is currently part of any legal proceedings.
4. Verify Land Ownership
Land Use and Zoning: Ensure the property is not subject to land use issues or zoning violations. For example, if the property is meant to be residential, it should be correctly classified as such by local authorities.
Builder/Developer Credentials: If you're buying a new property or one in a project, verify the builder's title to the land. Ensure they have the necessary legal approvals from local authorities for construction.
5. Ensure No Encumbrances
No Encumbrance Certificate: If the property was previously mortgaged, ensure that the loan has been fully paid off and the mortgage is cleared. You can request the seller to show documents of loan closure.
Clearances from Authorities: Ensure that all local authorities have granted the required clearances for the property, especially if it’s in a planned development (e.g., municipal, environmental, or zoning approvals).
6. Seller's Rights
Ensure that the seller is the actual owner of the property and has the legal right to sell it. If the property is jointly owned, all owners must agree to the sale.
If the property was inherited, check the legal heirs' agreement and ensure there are no disputes regarding inheritance.
7. Property Lawyer's Opinion
A lawyer can help review all relevant documents and give you a legal opinion confirming whether the title is clear and free from issues.
Key Red Flags:
Multiple Owners: Check if the property has multiple claimants or if the seller lacks full ownership.
Unclear Ownership: If the title deed is not clear or is missing, this could indicate potential ownership issues.
Disputed Land: If the land is subject to a court case or pending dispute, it could make the title unclear.