How to check if a property has a clear title before you buy

General information, not legal advice. Land and registration rules differ by state. Have a property lawyer check the documents before you pay a significant amount.

How do I check if a property has a clear title?

A title is clear when the seller can show an unbroken chain of ownership up to themselves, and no loan, dispute or other claim stands in the way of selling. You check it by collecting the title documents, getting an encumbrance certificate for the property, confirming the records match on the ground, and having a lawyer carry out a title search and give a written opinion.

What is a title search?

A title search is the review of the documents and public records showing who has owned the property and whether anyone else has a claim on it. A lawyer usually does it. They trace each transfer from an earlier owner to the present seller, look for gaps or doubtful documents, and check the registry, court and revenue records for loans, disputes or conflicting claims.

What is an encumbrance certificate?

An encumbrance certificate is an official record, from the sub-registrar's office in most states, that lists registered transactions on a property for a period you choose: sales, mortgages, gifts and similar. It helps show whether the property is free of registered loans or other claims. It does not show everything. An unregistered agreement or a court case may not appear, which is why it is one check among several.

Which documents should I ask the seller for?

• The registered sale deed or allotment letter in the seller's name, and the earlier deeds in the chain.
• The encumbrance certificate for as many years back as the records allow.
• Property tax receipts, and the khata or other municipal record in the seller's name. See A khata and B khata for one example.
• The approved building plan and the completion or occupancy certificate. See occupancy and completion certificates.
• For a plot, the layout approval. See buying a plot checklist.
• Electricity and water bills, and a society no-dues letter for an apartment.
• If the seller has a loan on it, the lender's statement and a written plan for releasing the original documents at sale.
• If someone else is selling for the owner, the registered power of attorney, and proof that the owner is alive and agrees.
• For a project, the RERA registration. See how to verify a builder's RERA registration.

What checks should I do beyond the papers?

1. Visit the property and confirm who is actually in possession. A tenant or occupant may have rights.
2. Match the boundaries and area in the documents to what you see on site.
3. Ask neighbours and the society office whether there are disputes.
4. Have your lawyer search court records for cases involving the property or the seller.
5. Ask your lawyer to publish a public notice inviting objections, if they advise it.
6. Check that all co-owners or legal heirs are signing the sale.

What are the warning signs?

• The seller cannot show the original documents, or says they are with a bank without proof.
• The names on the papers do not match, or the chain has a missing step.
• The price is far below similar homes, and the seller is in a hurry.
• A co-owner or heir is absent from the sale.
• The seller will not let your lawyer see the documents.

For the full set of approvals to ask for, read the documents checklist. Before paying any advance, read how to verify an owner, and see our trust page for what Bhavano does and does not verify.