How to Read a Property Document without a Lawyer

Buying property for the first time can be a very confusing experience particularly because of all the legal paperwork involved. Assist buyers/investors confirm the safety of buying a property, as well as any issues relating to ownership or land disputes on that property, they must learn how to verify a property document. This beginners’ guide offers information on how to verify land documents, correctly read key sections and identify red flags, as well as knowing when to seek professional assistance.

Learning these property-checking basics will help you avoid situations where you could incur large financial costs or delays when looking to purchase property.

1.Quick method for confirming whether a property is valid prior to signing an Agreement

Collect copies of necessary documentation before you sign an agreement. Documentation will verify Ownership (who owns the property) and Legal Status (the legalities surrounding that property).

Essential Document List

– Title Deed

– Sale Deed

– Encumbrance Certificate (EC)

– Property Taxes

– Mutation Certificate(s)

– Chain-of-Title History (historical ownership information)

Confirm Ownership

Confirm ownership, ensure:

– the seller of the property is the same person referenced on the Title Deed

– the seller has the legal right to sell the property

– there are no other persons disputing the seller’s right to sell

– the seller’s identification matches the name at the top of each of the related documents

Identifying Sale Deed vs Title Deed vs Mutation Record is just one of many steps to verifying property documents.

For other buyer-friendly resources check out www.oreereality.com (under Knowledge centers).

2.Step-By-Step Instructions on how to read several types of property documents

Read each document to ascertain your understanding of the property’s owner as well as additional details regarding that property’s legal description. Confirm the sovereignty of a property by verifying its Title Deed.

Ask for the following:

The name of the owner,

The owner’s rights,

Transfer of ownership,

The address or location of the property.

Be sure there are no misspellings or any other omissions of details that reflect ownership of the property you are checking.

3.Review the description of the property to ensure it matches what is on the ground.

Check:

The survey number

The plot number

Property size/area

The boundaries of the property

Incorrectly marked property boundaries is a communal problem encountered when learning how to verify land documents.

4.Check the history of ownership.

Also known as the chain of title, the ownership history document(s) list all previous owners of the property.

You will want to check for:

Previous owners

Dates of Transfers

The kind of transfer (i.e., a gift, sale, inheritance)

The ideal chain of title will be clear of all issues (i.e., no name misspellings, no missing pages) for a minimum of 20–30 years.

5.Confirm There Are No Encumbrances

Encumbrances refers to a loan on the property or claims made against the property.

Confirm there are no encumbrances check:

The Encumbrance Certificate

Mortgage records

Loan terms

A Nil Encumbrance Certificate means the property has no encumbrances, financial or otherwise.

6.Verification Checklist for Authenticity

After reviewing the documents, you will want to confirm the documents as being authentic.

Ask for the following:

An official seal

The signature of the Registered Owner

The Registration Number

A Government Stamp

Also compare and confirm:

The Survey Numbers

The Property Map

Measurements

You should be able to check any of the above with your local Sub-Registrar Office or through an internet search of the land records portal.

7.Warning Signs of Potential Problems in Property Document Verification

Recognizing the warning signs of fraudulently prepared property documentation can help protect buyers from being duped and/or ending up in costly lawsuits.

Common Warning Signs

You should look for the following things:

Discrepancies in the names

One or more pages missing

Incomplete ownership history (i.e., parts missing)

Inaccurate boundary markers

Pending lawsuits against the owner of the property or the property itself

No explanation of loans or liens related to the property

If there are any vague areas or wording, do not proceed until the items in question are clarified.

8.Document Verification Tools and Resources

Today there are many tools available to simplify verification of land documentation.

Tools You Can Use

You may use:

The Online Land Records Portal

The Encumbrance Certificate Portal

The Municipal Property Tax Portal

The Sub-Registrar Office

Your Local Survey Department

Quick Verification Checklist

Prior to purchasing property, verify:

The Title is accurate

The Sale Deed is registered

All taxes have been paid

The Survey Number matches

The Ownership history is accurate

No pending disputes

9.When To Seek Professional Help

Although simple verification of the property documents can be accomplished independently, using the services of an experienced professional is recommended when the value of the property is significantly above average, if the ownership history of the property has missing items, or if the owner(s) of the property has numerous owners or if there are pending lawsuits regarding the ownership or property.

Utilizing the services of a qualified professional adds an additional layer of protection to your financial investment when purchasing a property.

Conclusion

It is imperative that first-time property buyers and investors become familiar with how to verify land documents, and how to do so step by step, in order to verify current ownership of the property being purchased, identify any hazards associated with the property and to be able to make well-informed decisions regarding the property being purchased.

By following the process of verifying the title of the property, the chain of title for the property, any encumbrances on the property and the authenticity of the documents, buyers will mitigate their chances of making the types of mistakes commonly made by property buyers.

Finally, if a buyer has concerns regarding the validity of any aspect of their transaction, they should obtain the services of a professional prior to proceeding with the transaction to protect their monetary interests.