Understanding the Process, The Risks, and How to Secure Your Investment
Buying a property is likely the biggest financial decision of your life. You save for years, apply for loans, and browse through countless options to find the perfect home or plot. But there is one step that matters more than the location, the price, or the amenities: Title Verification.
Many buyers assume that if a building is standing, or if a seller has the keys, the ownership is clear. This is a dangerous assumption. In the legal world, possession is not ownership. Just because someone holds the property does not mean they have the legal right to sell it to you.
This guide explains what Title Verification is, why you cannot skip it, and the specific steps involved in ensuring the property you buy is legally safe.
What is a “Title” and Why Does it Matter?
“Title” is the legal term for your right to own, use, and dispose of a property.
When we say a property has a “Clear and Marketable Title,” it means:
-
- The current seller is the undisputed legal owner.
- The property is free from any claims, disputes, or doubts.
- You can buy it without fear of future litigation.
If the title is defective, you risk losing the property, facing years of court battles, or finding that you cannot sell or mortgage the property in the future.
The Risks of Skipping Verification
If you buy a property without a thorough investigation (Search and Title Report), you expose yourself to severe risks:
-
- Multiple Owners: The seller might be one of several heirs. If other family members haven’t signed away their rights, they can claim your property later.
- Undisclosed Mortgages: The previous owner may have taken a loan against the property and not repaid it. The bank could seize the property to recover dues, even after you buy it.
- Litigation: The property might be involved in a pending court case (Lis Pendens).
- Government Acquisition: The land might be reserved for a road, park, or government project.
- Fraud: The seller might be an imposter or using forged documents.
The Step-by-Step Process of Title Verification
A proper Title Verification is not a quick glance at the sale deed. It is a forensic investigation of the property’s history. Here is what a competent property lawyer investigates:
1. Tracing the “Chain of Documents” (30-Year Rule)
We do not just look at the current seller. We look backward. We trace the ownership history for at least the last 30 years.
-
- Why 30 years? Under the Limitation Act, legal claims against a property can sometimes be raised years after a transaction.
- What we look for: We verify every link in the chain. If Person A sold to Person B in 1995, and Person B sold to Person C in 2010, we need to see the registered agreements for every single transfer. If a link is missing, the title is defective.
2. Revenue Records Check (7/12 Extract and Property Cards)
In Maharashtra, revenue records are vital evidence of possession and rights.
-
- 7/12 Extract (Satbara Utara): For land, this document shows the names of the occupants, the type of land (agricultural/non-agricultural), and existing loans.
- Mutation Entries (Ferfar): These entries record how the ownership changed from one person to another (e.g., by sale, inheritance, or gift). We verify if the mutation was done legally.
- Property Card: For urban properties (city survey limits), this card establishes ownership.
3. Search at the Sub-Registrar’s Office
This is an official search conducted at the government registration offices.
-
- Index II: We examine the “Index II” registers to see every transaction recorded against that specific property.
- Encumbrance Certificate: This confirms whether there are any registered mortgages or charges on the property.
4. Public Notice (Paper Notice)
You will often see legal notices in newspapers stating, “My client intends to purchase this property… objections are invited.”
This is not a formality. It is a strategic legal move.
-
- It forces anyone with a hidden claim (like a