Title verification is one real estate assignment that never goes out of fashion.
You can charge very well for it, especially if you obtain this work from an in-house counsel, a developer or a law firm.
We will discuss how to network with such clients separately.
Right now, we will discuss how to perform title verification for a client.
Some of you may have already done this work – but some of you may want to revise or learn it from scratch.
We will restrict ourselves to certain states, although the process in all the states is largely similar, with variations in terminology.
Here are the broad steps:
Part 1 – Check current ownership
Most of the state governments have digitised some of the land records. Thus, these documents can now be viewed at the website. Let’s understand with Haryana government website Jamabandi Here you can find out about title and other details of the property. It is also called 7/12 Extract and a Form VIII A in Maharashtra and few other states. .
Check Jamabandi for ownership, available at the Revenue Office, maintained by Revenue Department
If you know Section/Division, District, Taluka, Village, Survey Number/Alphabetical Survey Number/Group number/Name of the Land Owner, then you can access this form.
Once you have the survey number, you can find out about the owner(s) through the website.
Check register of mutation
Form VI or the Register of Mutation keeps a record of change in the right over the land and also includes loan transactions, though it is not conclusive.
Part 2 – Past chain of title to rule out possibility of future disputes
Record of rights are available at the Revenue Office, maintained by Revenue Department and online as well
Jamabandi extract comprises the Record of Rights:
- Ownership- If the piece of land is owned by a certain person;
- Land share- If the land is jointly owned by more than one persons, the names of such persons;
- Encumbrances – If there are any encumbrances upon the land like an unpaid loan, unpaid taxes mortgages, etc;
- Land Dispute – If there is any pending litigation on the land. Note that transactions alienating property under dispute are not allowed under the Transfer of Property Act, 1882 (Lis pendens, Section 52);
- Occupancy
Here is a sample –
Visit Registrar’s Office and inspect the register
Here, we are looking for those documents which are required to be registered under the law, such documents are kept with the registrar/ sub registrar.
There will be Book No. 1, Index 1 and Index 2 which you will need to check.
Part 3 – Encumbrances
Apply for Nil Encumbrance Certificate from the Sub-Registrar
A nil encumbrance certificate certifies that a given piece of land is free from financial or legal liabilities. It also contains a record of mortgages or any charges created against the land. It is advisable to obtain a certificate reflecting the 30-year history of the land.
Note that in Maharashtra, until now there is no concept of such practice.
There is a format for this in each state.
Search with Central Registry of Securitisation Assets Reconstruction and Security Interest (“CERSAI”)
CERSAI maintains a database for assets pledged with banks. Whenever the banks extend loans against any assets, they have to make an entry into the database of the CERSAI. You can do an online public search here.
Part 3 – Factual possession
This is done based on a visit to the property.
Part 4 – Litigation
Litigation-related information is usually obtained from the seller. However, you can also perform a search with the names of the owners in the civil/district courts of the relevant districts – all suits in respect of immovable property are to be filed within the district where such property is situated.
Part 5 – Draft the report
We showed you a US title search report earlier. Here’s a link to the US report.
Here is a format of an Indian report.