If you are purchasing an independent pre-owned property
or a flat in a housing society, initially ask for the original share
certificate. One way of ensuring right ownership for property, is to verify the
house agreement. To double check, you
can also peruse the telephone and/or electricity bills, as they are issued only
in the name of the lawful owner of property. Alternatively, you can check the
housing society’s maintenance bill which contains the owner’s name and property
tax details.This document will also highlight any pending charges that are due
payable by the owner of the house or flat which you propose to buy. This is
crucial because, if the owner sell the flat without paying his entire
outstanding dues, the society may recover the same from the new owner. In order
to avoid such hassles, better to ask the Housing Society to issue a No-Due
Certificate or a No Objection Certificate.
Please note that any pending litigation on the property
should also be a warning signal because the purchaser is legally bound by the
result of the suit, and in case the Court establishes that the seller was not
the rightful owner, you will have to hand over the property to the true owner
who obtains a Judgment and Decree to that effect issued by the Court of Law.
To check for pending litigations on the property, the
lis-pendens registry available at Sub Registrar’s Office need to be verified,
as it will contain the owner’s name in case any litigation is pending.
Mortgaged properties are the other lemons, you need to
watch out for. In such cases, the
original documents of the property are invariably held by the concerned lending
Institution. As such, in case the Seller
fails to show you the original documents of the property, there is every
reason for you to be more alert. In case the Seller claims that he has cleared
the entire outstanding dues, then insist for Bank’s full satisfaction letter or
original discharge letter.
Before conclusion, it is generally opined that a clear
title is not assurance enough and as such one should even consider to contact
previous owners, to rule out any fraudulent transaction. As a prudent
purchaser, it is better to publish a ‘public notice’ in the newspaper inviting
objections if any against your proposed purchase of said property.
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