Housing and Home Loans in India
Checking Property Title and Records
Why unclear land and property titles are a major risk in India, what documents buyers should check, and how land records are being digitised.
In India, proving who owns a property can be complicated. Title disputes are a major source of court cases and risk for buyers.
Why titles are unclear
- Presumptive titles: India’s land records generally show who holds land and pays tax, but don’t guarantee ownership.
- Outdated records, inheritance disputes and fragmented land.
- Fraud, such as properties sold twice.
Documents to check
- Title deed and chain of past sale deeds, often for 30 years.
- Encumbrance certificate: shows whether the property has loans or legal claims.
- Approved building plans and completion or occupancy certificate.
- Land use permission.
- Property tax receipts.
- RERA registration for new projects.
Due diligence
- Hire a lawyer to check documents.
- Banks’ legal checks before approving loans offer some comfort, but aren’t a guarantee.
Digitising land records
The Digital India Land Records Modernization Programme aims to computerise land records and registration. Many states now let people view records online. Some have introduced unique land parcel identification numbers.
The economics
Unclear titles:
- Reduce the value of land.
- Make land hard to use as collateral.
- Slow infrastructure projects.
- Fuel litigation.
Economists argue that moving toward conclusive titling, where the state guarantees ownership, would boost investment.
A buyer pays for a plot, only to find another person has a sale deed for the same land from years earlier. A careful title search of past deeds and an encumbrance certificate might have revealed the problem.
India's records are presumptive, so buyers must check the full chain of title and encumbrances.
- Indian land records generally show possession, not guaranteed ownership.
- Buyers should check title deeds, encumbrance certificates and approvals.
- Land records are being digitised across states.
- Clear titles would raise land value and investment.
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