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 sells 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 contacting 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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