Last Updated on January 3, 2025 by Satish Mishra
Buying property in Zirakpur Derabassi Panchkua, then you must know Title Search, Due Diligence RERA fact-check report about project first. Post covers extensively what all needs to be seen in the project legally and what all compliances must be followed by builder.
The post is a master education piece which will minimize your risk to lowest giving you clarity on the purchase. Though Property Search lawyers charge you a nominal fee for this, but it is completely justified seeing the worth of risk involved into it. Think again?
What is Title Search?
A title search is a process that verifies a property’s legal ownership and identifies any claims or liens on the property. It involves examining publicly available records to:
Confirm that the current sellers are the legal owners
Ensure a clear and marketable title
Discover defects that could prevent the property from being sold
Provide insights into property taxes, deeds contracts, and CC&Rs (contracts, terms, and restrictions)
Here are some steps involved in a title search:
Chain of title: The sequence in which historical transfers of title to a property have occurred
Tax search: A step in the title search process
Inspection: A step in the title search process
Name and judgment search: A step in the title search process
A property title searcher is a competent person who searches the entries of the deeds registered in the Sub-Registry office. It is difficult to search without a professional searcher because each entry has to be searched line by line.
Also Read- Title Search Report Legal Search Property Verification & Due Diligence
What is Title Search Report Zirakpur Derabassi Panchkula?
A “title search report” is a legal document that details the ownership history of a property, including any legal claims, liens, or encumbrances against it, essentially verifying the legal status of the property before a sale or mortgage transaction, ensuring the seller has a clear and marketable title to the property.
Key points about a title search report:
Purpose:To identify potential legal issues with a property’s ownership, allowing buyers to make informed decisions before purchasing.
Information included:
Current property owner
Chain of title (previous owners and how the property was transferred)
Any outstanding liens or mortgages
Property boundaries
Court judgments related to the property
Easements or restrictions on the property
Who generates it:
A lawyer or title company usually conducts the title search and prepares the report by examining public records at the local court or registrar’s office. You can even contact me for this.
Importance:
For buyers: Helps identify potential risks before buying a property
For lenders: Necessary to verify the property’s title before approving a mortgage
Also Read-CHECKLIST FOR BUYING PROPERTY IN CHANDIGARH PANCHKULA MOHALI ZIRAKPUR DERABASSI KHARAR BADDI
Now why Title Search?
A title search report for a property is conducted for 30 years for government-owned properties because the limitation period against the state is 30 years. A title search report is a thorough process that verifies the legitimacy of property ownership and is an essential step before finalizing a property purchase.
Here are some other reasons why a title search report is conducted:
Evidence Act
Section 90 of the Evidence Act states that a document that has existed for 30 years or more is considered to have been executed validly.
Limitation Act
The Limitation Act of 1963 prescribes a period of 12 years for legal action on private properties.
Avoid legal complications
A title search helps avoid legal and financial complications arising from defective titles.
Protect investment
A title search report protects the investment of anyone buying, selling, or owning a property.
Fraudulent transactions
A title search report protects the buyer from fraudulent transactions.
A title search report typically costs around 0.05% to 0.15% of the total value of the property. The cost may vary from state to state and depend on the type of property and its complexity.
Also Read- PROPERTY TRANSFER IN CHANDIGARH PANCHKULA MOHALI ZIRAKPUR
Now why Property Due Diligence Required before purchase?
Property due diligence is a thorough analysis of a property’s legal, financial, and physical aspects before buying or investing in it. It helps buyers make informed decisions and minimize risk.
Here are some things to consider during property due diligence:
Legal documents
Review the sale agreement, title deed, encumbrance certificate, property tax receipts, and building plan approvals.
Property condition
Conduct a physical inspection to check for structural issues, plumbing, electrical, and pest problems.
Financial aspects
Review the property’s financial income, balance sheets, and tax history.
Compliance
Ensure the property complies with building codes, land use regulations, environmental norms, and local laws.
Builder’s track record
Assess the builder’s reputation by reviewing past projects, construction quality, and legal approvals.
Land use
Check if the land can be used for agricultural, industrial, commercial, or residential purposes.
Land acquisition
Verify that the land is not subject to land acquisition proceedings.
Chain of title deeds
Check the chain of title deeds, stamped receipts, lease deeds, and gift deeds.
Ownership
If the property is in joint names, obtain a no objection certificate (NOC) from the co-owner(s).
Complex ownership structures
If the property is inherited, held by a company, or jointly owned, verify the necessary documents.
For high-value or high-risk transactions, an enhanced due diligence (EDD) process may be required.
Also Read- UNREGISTERED PROJECTS IN RERA PUNJAB AND HARYANA AT PANCHKULA
Now you can similarly do the due diligence of Builder if going ahead with any of the RERA approved projects.
Due diligence is a thorough investigation and analysis of a construction project before it begins or is acquired. It involves assessing various aspects of the project, such as:
Legal and regulatory requirements: Whether the builder has the necessary permissions and clearances
Financial feasibility: The financial implications and risks of the project
Site conditions: The potential risks at the site, such as flooding or traffic flow
Technical compliance: Whether the building complies with national building codes and local regulations
Fire safety: Whether the building meets fire safety requirements
Also Read- Property Title Verification Chandigarh Punjab
The goal of due diligence is to identify any issues that could impact the project’s viability and to mitigate those risks. It also provides accurate information to prospective home buyers.
Here are some things you can do to perform due diligence on a builder:
Check the builder’s track record: See if they’ve delivered past projects on time and maintained quality
Review client reviews: Ask the builder about projects mentioned in online reviews
Visit a past project: Visit a project that’s similar to the one you’re interested in, preferably without the builder present
Check the builder’s company status: Make sure the company is active and trading at Companies House
Check the builder’s VAT status: Check the builder’s VAT status
Examine performance and payment bonds: Ensure that the terms and conditions of these bonds align with industry norms and legal requirement
Also Read-RERA Property Advisor Chandigarh Panchkula Mohali Kharar Zirakpur
Now if you are looking to buy RERA Approved property, then you must also follow the below checks as per me. Continue reading-
When looking at RERA approved projects, key things to check include: detailed project plans, layout designs, clear land title ownership, financial disclosures including funding sources, project timelines, delivery schedules, carpet area details, necessary clearances and NOCs, and confirmation that the project is free from legal disputes, all ensuring transparency and buyer protection under RERA regulations.
Key aspects to examine in an RERA approved project:
Project details:
Approved building plans and layout designs
Carpet area of each unit clearly stated
Detailed specifications of amenities and facilities
Legal and regulatory compliance:
Confirmation of RERA registration number and project details on the official RERA website
All necessary clearances and No Objection Certificates (NOCs) from relevant authorities
Land title details and ownership verification
Financial transparency:
Developer’s financial statements and track record
Information about funding sources for the project
Details about the escrow account used for project funds
Project timelines and delivery schedule:
Clear project completion date and milestones
Provisions for penalties in case of delays
Consumer protection features:
Buyer grievance redress mechanisms outlined by the developer
Information regarding dispute resolution process
Also Read- Free Legal Advice Related to Property Online
Why RERA approval is important:
Increased transparency: Developers are mandated to provide detailed information about the project, including plans, financials, and timelines.
Financial security: Escrow accounts ensure that buyer funds are used solely for the project
Legal protection: Buyers have recourse against developers in case of non-compliance or delays
Quality assurance: Projects must adhere to set construction standards and regulations
Also Read- Modes of Transfer of property Chandigarh Panchkula Mohali
Hope this post answers all your queries. Lastly, don’t be your own lawyer. Let a professional do his job, if you need his/her advice.
You may also contact me for Title Search/Property Verfication/Due Diligence Zirakpur Derabassi Panchkula Chandigarh Mohali Kharar being Property/RERA Lawyer in the region at 99888-17966.
