What is a property title? How is it different from a property deed?

While land and other immovable properties are physical assets, ownership over these must be proved with the help of documentary support. This basic logic would help a rookie buyer or investor differentiate between a property/land title or land/property deed.

 

What is a land/property deed?

In India, land and property ownership is primarily established through a registered document that acts as a record of the property transaction between a buyer and a seller. This document which can be of various types, depending on the nature of the property transaction is known as deed.

In other words, a deed is a physical document that enumerates each detail of a land or property and its ownership. A deed is a legally accepted documentary proof of a land parcel or property ownership. A duly registered property/land deed gives information about the legal rights and obligations arising or affecting a property.

 

Types of deeds

Deeds related to immovable property can be of different types. These include:

Sale deed: This deed is executed when property rights are sold from one person to another.

Gift deed: This deed is executed when property right is gifted from one person to another.

Exchange deed: This deed is executed when the property right is given from one person to another in exchange for something.

Partition deed: This deed is executed when the title of a joint property is divided among its legal heirs.

Relinquishment deed: This deed is executed when a legal heir of a property gives up his right on the property to another legal heir.

Will deed: This deed is executed to distribute your property after your death.

Mortgage deed: Mortgage is a transfer of an interest in a specific immovable property for a specific time to secure a loan.

Lease deed: A lease of immovable property is transfer of a right to enjoy such property, made for a certain time, in consideration of a price paid or promised.

Deed of surrender: A deed of surrender allows the early termination of a lease upon the agreement of both parties.

 

What is land/property title?

Unlike deeds, which have a physical form, title is an abstract concept that refers to the ownership of land/property. Deeds are the physical instruments by which the title of a property is conferred from one person to another. In simple words, deeds are the proof of property title. According to the Transfer of Property Act 1882, the right, title or interest in an immovable property or land can be transferred only by a registered instrument.

 

Why property deeds and property titles are important?

A World Bank study in 2007 states that some estimates suggest that land-related disputes account for two-third of all pending court cases in the country. These land disputes include those related to the validity of land titles and records, and rightful ownership. According to a NITI Aayog paper, land disputes on average take about 20 years to resolve. In the absence of clear property titles, a buyer is highly susceptible to fraud if he is about to invest in a property, especially land.

To deal with this issue, states in India have ramped up efforts to digitize land records. They have also put in systems in place to enable easier and hassle-free property/land registration.

 

Housing.com Viewpoint

Though land and property are immovable-physical assets, their ownership requires not only physical possession but also documentary proofs. Deeds like sale deed, gift deed, etc., are the legal instruments that prove the authenticity of the ownership. So, all your property documents must be in order.

 

FAQs

How can land be transferred in India?

Land in India can be transferred from one party to another through sale, purchase, gift, inheritance, mortgage, and tenancy.

Is registration of property documents mandatory?

Yes, all documents that create, declare, assign, limit, or extinguish any right, title, or interest, or immovable property must be registered if the value is over Rs 100.

What is the purpose behind deed registration?

The purpose of registration is to ensure information about all deals recorded and maintained apart from giving the document its authenticity.

Apart from deeds, what other documents help establish property title?

Other documents used to establish ownership include the record of rights, property tax receipts, and survey documents. These documents are not a government guaranteed title to the property, but only a record of the transfer of property.

During property registration, what is registered, the title of the property or the transaction?

During registration, the transaction is registered and not the title. This means that such registration does not guarantee the title by the government. This document would, however, act as a legal proof of property registration in case of disputes.

What is the record of rights?

Record of rights is the primary record that shows how rights on land are derived for the owner. It also records the property’s transactions from time-to-time.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected]