Buying a property involves a big investment decision. It could be residential plot, an apartment, agricultural land or commercial property.
Most purchasers focuse on the cost of property, location and its future value, without taking into consideration some legal aspects of it. Such negligence might cause various disputes, economic losses and legal problems.
The purchase of properties in Jharkhand might involve some common mistakes. Such as the issue of ownership, absence of records, loan dues or approval problems. Such dangers might be detected before the purchase.
Trusting Verbal Assurances
One major problem that people face is placing blind trust on the seller/broker without verifying any documents.
The seller might tell you that the property has clear title. He may also tell you that the property has no mortgages or litigation pending. These statements should always be confirmed by records.
Owners should verify ownership, possession, property boundaries, and legality of the property prior to paying for it.
Therefore, it becomes imperative for Property Verification to become an integral part of the purchase process.
Skipping Property Title Verification
Many buyers focus on the property price and location. They may forget to check the ownership title.
Property Title Verification helps confirm whether the seller has the legal right to sell the property.
Buyers should check:
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Ownership history
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Chain of title documents
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Previous sale or transfer deeds
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Encumbrance records
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Pending court cases
A problem in the ownership chain can create serious issues later. In some cases, resolving such disputes can take years.
Failing to Conduct Property Due Diligence
Buying property is not just about signing an agreement and registering the sale deed. The property should be checked from different legal and financial angles.
Property Due Diligence may include checking:
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Records of ownership
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Classification of land
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Approvals of the government
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Liabilities
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Litigation record
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Regulatory requirements
Some buyers have the misconception that registering the property makes it legally safe. Registration only verifies that there is no other ownership issue for the property.
Ignoring Property Document Verification
Incomplete or incorrect documents can create serious property disputes.
Property Document Verification may include checking:
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Sale deeds
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Gift deeds
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Partition deeds
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Mutation records
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Property tax receipts
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Approved building plans
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Possession certificates
Buyers should also check important details such as survey numbers, property boundaries, and owner names.
Even a small error in these details can cause problems later. Careful Property Document Verification can reduce this risk.
Not Checking Encumbrances and Liabilities
A property may look clear but still have financial or legal liabilities.
Before buying, check whether the property has:
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Outstanding loans
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Mortgages
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Court attachments
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Government acquisition proceedings
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Recovery claims from financial institutions
Buying a property with unresolved liabilities can create unexpected problems for the new owner.
A proper Property Verification process can help identify these issues before the transaction.
Overlooking Land Records and Revenue Documents
Land records are important when buying property in Jharkhand.
Buyers should review:
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Mutation records
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Revenue records
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Land tax receipts
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Record of Rights (RoR)
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Survey records
These records can provide useful information about ownership and the property's legal status.
Ignoring these records may create problems during future sale, transfer, inheritance, or development.
Signing Agreements Without Legal Review
Property agreements can contain terms that buyers may not fully understand.
Signing an agreement without proper review can result in:
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Unfavourable terms
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Hidden liabilities
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Unclear ownership conditions
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Disputes over contractual obligations
A legal review can help buyers understand their rights and responsibilities before signing.
A qualified Property Lawyer in Ranchi can review the documents and point out potential legal concerns.
Ignoring Approvals and Regulatory Requirements
Apartments, housing projects, and commercial properties may require several approvals.
Buyers should check:
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Building approvals
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Completion certificates
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Occupancy certificates
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Applicable RERA registration
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Environmental approvals, where required
Do not assume that the required approvals are already in place. Check the relevant records before buying.
This can help confirm whether the property meets applicable legal and regulatory requirements.
Delaying Mutation and Other Formalities
The process does not always end after registration of the sale deed.
Buyers may still need to complete important post-purchase formalities, such as:
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Applying for mutation
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Updating municipal records
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Transferring property tax records
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Updating utility records
Completing these steps on time can help avoid problems with future sale, transfer, or inheritance.
Property Buying Checklist
Before buying property in Jharkhand, consider these checks:
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Conduct Property Verification
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Complete Property Title Verification
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Check the ownership history
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Perform Property Document Verification
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Verify land and mutation records
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Check for loans and other liabilities
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Review government approvals
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Check applicable regulatory requirements
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Verify property tax payments
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Get the agreement reviewed by a legal professional
These checks can help reduce the risk of disputes and unexpected financial losses.
Conclusion
The process of purchasing property is not only about examining the cost of the property and registering the sale. Legal and document examination should also be performed.
Property Verification, Property Due Diligence, and Property Title Verification may assist you in discovering the possible dangers before carrying out the transaction.
If you are going to purchase land, house, or commercial property, the proper verification of the transaction will help you to avoid any possible problems in the future.
It is also useful to consult a lawyer before concluding the transaction.