(Bangalore property|2bhk apartments for sale in bangalore|flats|lands for sale in Bangalore)
Investing in land and
buildings require huge sums of money.Therefore, every purchaser of immovable property has to be very careful and take all precautions to protect his
interest and to make doubly sure that the vendor has good and marketable title
and the property is free from encumbrance.
There are various documents
which would provide vital information as to whether a property in question is
free from encumbrance and the vendor has good and marketable title.Upon going
through these public documents available in the Sub-registrar's office, search
reports are prepared and such search reports contain information as to whether
the property in question is encumbered or not and the vendor possesses a clear
and marketable title or not.Search reports are prepared by advocates upon
verification and confirmation from the concerned authorities as to genuineness
of the documents.
Search report gives a
summary of the ownership details of a property and changes in ownership that
have occurred from time to time including existing or not of any charge or
encumbrance over the property.The search report discloses if there is any
existing mortgage, litigation, or claim which may adversely affect the title of
the property. Search reports are prepared upon verification of the property
documents for the last 30 years. It would be in the interest of the buyers that
they insist on production of search report before executing the 'agreement to
sell' with the property developers or with the owners of the property.
The search report does not
display the defects in the title to the property or any transactions that have
not been recorded in the Sub registrar's office. If any document is not
registered with the sub-registrar's office it cannot be mentioned in the search
report.
Commercial banks do insist
on production of search report before granting any advance or loan for purchase
of any property. For availing a housing loan from a banking institution, it is
a per-requirement that the title of the property of the present owner should be
clear and marketable. Usually banks do not finance any encumbered property or
if the property is under legal dispute, as it would reduce their security and
increase their exposure to risk. This means the seller should be genuine and
the actual owner of the property.The property should not be under any dispute
or litigation.The charges for search report are nominal and are included in
the processing and administration charges by the bank to sanction and disburse
the loan.
This process of obtaining
the search report gives security to the buyer. It assures the purchaser that
the title of the property which he plans to buy is good and there won't be any
problems at a later stage because of any per-existing charges, encumbrances or legal contentions on the property.
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