Thinking of purchasing property? A key step in avoiding legal hassles in the process or in the future is the title search. It is essential to ensure that the property in question has a legally healthy title, which is done by conducting a title search. This process involves reviewing public record and ascertaining the legal ownership and claims or liens on a property, if any. To ensure the property’s title is clear for sale or transfer, various documents such as deeds, mortgages, court records and other appropriate paperwork are thoroughly examined.
See also: What is a property title? How is it different from a property deed?
Title search process
The records required for a title search can be accessed at the office of the sub-registrar of the municipal corporation. However, the digitisation of the public records of the piece of property by the Government of India has made the process a breeze. Examining the title deed of the property gives you insight into the size, boundaries, location, ownership details, transfer history, outstanding claims and disputes, previous buying price, loans and dues on taxes, and restrictions, if any.
To conduct a title search online, you simply need to go to the official land record website of the respective state (such as Bhulekh in Delhi, Bhulekh Mahbhoomi in Maharashtra, Patta Chitta in Tamil Nadu, and more). Next, go to the ‘Citizen Services’ section and enter location details of the property. Click on the ‘Submit’ or ‘View’ button as applicable to obtain the full details about the property’s title.
Why is a title search necessary?
Here is why it is important to conduct a thorough title search before investing in property:
Verification of ownership
The title deed confirms the identity of the current legal owner of the property. The verification is important to ensure that the seller does indeed have the right to transfer ownership of the property to the buyer.
Identification of liens and encumbrances
An existing liens, such as unpaid mortgages, taxes or contractor liens are mentioned in the title deed, allowing the buyer to demand accountability for their settlement before the transaction goes through and the property is officially transferred.
Detection of legal issues
Legal issues might affect the ownership rights of the property. A title search uncovers issues like disputes over boundaries, claims by heirs, or fraudulent deeds so that they can be mitigated before the transfer of ownership.
Easements and restrictions
The process makes the buyer aware of any limitations or obligations associated with the property by identifying easements, i.e. rights of others to use the property, and restrictions, i.e. limitations on the use.
Protection against fraud
By verifying the authenticity of the property records and the legitimacy of the seller’s ownership, it helps protect the buyer against fraudulent practices and forgery.
Title insurance
A title search is a prerequisite for obtaining title insurance that grants protection to the buyer and lender from financial losses due to defects in the title or challenges to legal ownership.
Lender requirements
To protect their investment in the property, most mortgage lenders demand a title search and insurance, thereby making it a mandatory step in the home buying process.
FAQs
What is the importance of a title search?
A title search is crucial in ensuring that the property has a clear title before purchase to avoid legal issues and financial losses.
How is a title search conducted?
A title search is can be conducted either by accessing the records physically at the sub-registrar's office or on the official land records website of the respective state and reviewing them thoroughly.
What information does a title search reveal?
Current legal owner, property boundaries, transfer history, outstanding claims, disputes, previous sale prices and restrictions and easements, if any, are revealed in the process.
Why do lenders mandatorily require a title search?
It is an important requirement put forward by lenders as it ensures that there are no legal issues or claims affecting the property’s value or the borrower’s ability to repay the mortgage.
What are some common issues that a title search might uncover?
Common issues include unpaid mortgages, tax liens, contractor liens, boundary disputes, fraudulent deeds and claims by heirs.
Can a title search uncover fraud or forgery?
A title search can help verify the authenticity of property records and ownership claims by uncovering forged signatures on deeds or fake property documents.
Is obtaining title insurance mandatory while purchasing property?
While not mandatory, a title insurance provides additional protection against unforeseen issues with the property’s title. It might be a mandatory demand by lenders.
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