The buyer of property must ensure that the property she or he wants to purchase will not cause legal problems in the future and that the seller is the lawful owner of that property. To do so, she or he must undertake what is known as 'due diligence’ on the property.

The significance of title due diligence

• Conducting a title search or verification of the property's title. The terms 'title verification' and 'property due diligence' are sometimes used interchangeably, although title verification is a component of the wider due diligence procedure. It is the procedure of determining if the property's title deeds are in the name of the seller at the moment of sale. 'Title deeds' are documents that establish who owns a piece of property. Documents such as sale deeds, transfer deeds, and gift deeds fall within this category. A title verification should trace and verify a property's title records for the previous 30 years.
• Verifying the seller's legal ability. This implies that the buyer must guarantee that the seller is neither insane or a minor at the time of the sale.
• There are no encumbrances on the land. The term 'encumbrance' refers to the property's position as a mortgaged asset. If a buyer purchases a property with an encumbrance, she must pay the dues on the outstanding loan on that property.
• Its property tax has been paid. If the seller did not pay the property tax at the time of sale, the buyer will be responsible for paying it after the property is purchased. As a result, before acquiring the property, s/he must examine the seller's property tax slips.
• There are no legal liens on the property. There are several ways in which a property might become involved in a legal issue. For example, the seller may have erected a residential house on agricultural land without obtaining the necessary Change of Land Use (CLU) approval.

It is also conceivable that the seller did not modify her or his property before selling it. Other parties can lay claims to it even after it has been sold in such a case. The act of updating the revenue records of the municipal authorities on the change in ownership of that property so that they can levy property tax on it from the legal owner is referred to as'mutation' of a property.

The vendor should have mutated it before selling it, and the buyer should mutate it after receiving it. Properties that have not been mutated are penalized.

Time required to complete a property's paperwork verification

The length of time required to complete this activity is determined by the 'lookback' period during which the title-related documents are being validated. The lookback duration might range from 15 to 30 years, however, it is recommended that the lookback period be 30 years.

If all of the title papers are in order, the full verification procedure can be finished in 24 to 48 hours.

Whom should I consult?

While a property buyer can perform a title verification on his or her own, it is recommended that he or she engage with due diligence professional. Real estate attorneys and law firms charge varied fees for consultation services related to due diligence.

Documents to look for when conducting due diligence in India

Sale deed- A'mother deed' is a sale deed made by the seller and the former owner of the property. It keeps track of the property's transaction history [1] and specs [2]. If the mother deed is not accessible, the buyer must track the property's transfer for the last 15-30 years by looking through separate conveyance deeds belonging to all prior owners of that property. The buyer can do an e-search of conveyance deeds on the IG Maharashtra website, which is maintained by the Maharashtra Government's Department of Registration and Stamps, or go to the Sub- Office Registrar's (SRO) where the seller registered the property and obtain a physical copy of the deed.

• Occupancy Certificate (OC) - An OC is a certificate provided by the local authorities proving that the property is fit for habitation and built in accordance with local legislation.
• Up to date Encumbrance Certificate (EC)- An EC determines if the property being sold has any encumbrances.
• Completion Certificate (CC) - A CC certifies that the property was built in accordance with the approved construction design and satisfies all infrastructural requirements.
• Layout plan approval- A layout plan is a property's architectural design that depicts the utility lines and equipment arrangement. The municipality or development authority has approved it. If the property owner is unable to provide a layout design, the local authorities have the jurisdiction to demolish it.
• Building association No Objection Certificate (NOC)- The current owner receives a NOC from the building association/housing society of which the property is a part. It expresses a 'no objection' to the transfer of property ownership from the seller to the buyer.