Know Your Property

KNOW YOUR PROPERTY — A COMPLETE GUIDE A guide to what you must check before buying property in India

Table of Contents:-

1. The Governing Principle — "Buyer Beware"
2. Identifying Present Ownership
3. Confirming the Right Person
4. Dealing Through a Power of Attorney (POA)
5. Identity of the Property — Physical Verification
6. Layout Approval/ Building Plan/ Sub-division approval
7. Approach Roads and Pathways (Easement Rights)
8. Recitals in any property document
9. Revenue Records
10. Last Lines

1. The Governing Principle — "Buyer Beware" Before buying any property, there is a general rule under the Indian Contracts Act — "buyer beware" (caveat emptor). The law helps only a person who is diligent. So you have to know what things you must look for before buying a property. The burden is on the buyer to satisfy himself about the title. No court will relieve a buyer who neglected to verify the property before purchase. This is not a formality — it is the single most important thing you do before signing a sale deed.

2. Identifying Present Ownership First, you have to identify the present ownership — who is the owner of the property. This is revealed through various documents. A document of ownership is in the possession of the owner. It can be:

• A sale deed
• A settlement deed
• An assignment of land by the government
• A gift deed
• A partition deed (in case of inherited property)
• A court decree or order transferring title Present ownership is brought out through these various documents. You have to go through the documents, and then decide whether you are dealing with the right person.

3. Confirming the Right Person "Right person" means — suppose the ownership is in the name of Ramaswamy, you must confirm whether you are dealing with the same person. So the identity of the person you are dealing with has to be confirmed. Verify:

• The name on the sale deed matches the person standing before you
• Their identity proof (Aadhaar, PAN) matches the name in the document, encumbrance certificate, revenue records, property tax
• If the owner is elderly or ill or a minor, a person of unsound mind, or a person restrained by court from selling confirm they are acting of their own free will
• If multiple owners exist (co-owners, joint holders), all must consent to the sale
• A mismatch between the name on the document and the person signing the sale deed is a red flag that should stop the transaction until resolved.

4. Dealing Through a Power of Attorney (POA) If you are dealing with the POA holder of the vendor, you should understand the following points

• A POA does not by itself confer ownership — it only authorises someone to act on behalf of the owner
• The POA must be registered if it relates to immovable property
• An irrevocable POA should be checked for its terms and conditions
• If the Principal (the person who gave the POA) has died, the POA is no longer valid
• It is safer

5. Identity of the Property — Physical Verification Then comes the identity of the property. You have to physically visit the property. Physical verification is not optional. A document can describe a property perfectly, but if what exists on the ground is different, the document is unreliable. It is better to reach out to the registered and certified property valuers approved under government rules, banks, or financial institutions for the valuation reports backed by site visits.

6. Layout Approval/ Building Plan/ Sub-division approval Check whether the layout is an approved layout by the government, and whether the layout plan and approval number are mentioned. An unapproved layout can lead to serious problems:

• The layout may not get building permission
• The plots may not get individual patta or khata
• The local authority may demolish unauthorised structures
• The property may be difficult to sell or mortgage Always verify:
• The layout approval number and the authority that granted it
• Whether the layout plan matches what is on the ground
• Whether the roads, drains, and open spaces in the approved plan exist
• Whether the conversion of land use from agricultural to non-agricultural (where applicable) has been obtained
• Check for Regularisation Order, since the party would have been obtained later if the plan was unapproved during the 1900’s.

7. Approach Roads and Pathways (Easement Rights) If you don't have the approach road, there is a village map that gives you the description of roads and pathways. You have to be careful about roadways and pathways when you are buying a property that is part of a layout. An approach road is essential. Without it, the property may be landlocked — meaning you have no legal way to reach it. A landlocked property is extremely difficult to sell later and may have serious title defects. Check:

• Whether the property has a dedicated approach road or pathway
• Whether the road is a public road or a private road
• Whether the road is shown in the village survey map
• Whether the road is encroached upon or blocked
• For layout properties, whether the roads were part of the approved layout plan

8. Recitals in any property document After verifying all these details, you have to go through the recitals mentioned in any property document. This brings out how the present owner got title to the property. The recitals are the narrative portion of the property document you have. They tell the story of how the property came to be owned by the seller. Read them carefully. They will mention:

• The previous owner from whom the seller acquired the property
• The document through which the seller acquired it (sale deed, will, inheritance)
• The date of the previous transaction
• The property description as it appeared in the earlier document Title check is normally done for a period of 30–40 years. All the documents and transactions that the property has undergone for that period need to be checked, and the title has to be continuous — the chain has to be complete. A break in the chain — even for one transaction — means the title is defective. If there is a gap, you must find the missing link or walk away.

9. Revenue Records Apart from these things, there are documents connected with revenue records. The revenue records mainly are:

• Patta (general)
• Chitta and Adangal (as far as agricultural land is concerned)
• FMB Sketch
• A- Register

For ownership as per the revenue records, you have to identify whether the present owner has a patta in his name. Revenue records are maintained by the government and are considered strong evidence of possession and ownership. However, they are not conclusive proof of title by themselves — they must be read along with the registered title documents. The following has to be verified:

• Whether property tax has been paid
• Whether the electricity connection stands in the owner's name
• Whether the building conforms to the approved plan
• Whether the construction has been regularised (if there are deviations) All these strengthen the ownership. They are not title documents by themselves, but they corroborate the claim that the person is the true owner.

10. Last Lines A prospective buyer is encouraged to become familiar with the property before seeking the Advocate's final legal opinion. Such familiarity enables the buyer to understand the queries raised by the Advocate and to assist in resolving them, so that the transaction may proceed.