Certain
hidden facts like pending cases, prior agreements, government notifications of
the property cannot be traced out easily by verification of the documents. How can these hidden factors be uncovered,
and what should a purchaser do to protect himself against these hidden factors?
Generally
seller hands over the copies of the property documents to the purchaser to
examine the title. Such documents
contain only title documents, which may be cross-checked in the sub registrar’s
Office. But they do not disclose any
pending litigations, prior agreements which are not registered and government
notifications. As such, the Purchaser
should be very cautious and make arrangements for thorough search of records at
the concerned jurisdictional Courts to rule out the possibility of any pending
cases and also in offices of Urban Development Authorities such as : BDA,
BMRDA, KIADB, KHB, High way and other planning authorities etc., to rule out
the acquisition notifications, if any.
Further,
it would be difficult to verify any existing prior agreements or arrangements
which are not registered. As such,
proper enquiries with owner of the property, and also with neighbours may be
helpful. It would always be better to
register the sale agreement and get the property registered at the
earliest. Above all, Paper publication
of the intention of the Purchaser to buy particular property would help the
purchaser to a certain extent.
What
is Paper publication? How does it benefit the purchaser
Though
the Paper Publication may not be a statutory requirement, yet the idea of
getting a notice published in the widely circulated newspaper in the locality,
is to elicit the information from the general public that a bona fide purchaser
is intending to purchase the property from its owner. Besides this, the paper notification also
invites objections from various interested persons with documentary evidence in
support of their claim within the specific period.
Even
after issuance of such paper notification, a person said to have his claim to
the property does not lose his rights just because he could not disclose his
rights in response to such paper notification within the given time.
I
am not able to understand the difference between Khatha Certificate and Khatha extract. Would you please enlighten me
on this ? Could you also brief me about the importance of Encumbrance
Certificate ?
Khatha
is a revenue record maintained by the municipal authorities in respect of a
property standing in the name of a particular person for purposes of assessment
and collection of property tax. As it is
a secondary document in the absence of primary documents like Sale Deed, Gift
Deed, Partition Deed, Release Deed, Will, Grant etc., however it does not
establish the title in its totality.
Khatha
Certificate is a Certificate issued by the Municipal authority Office
confirming that the Khatha of a particular property stands in the name of a
particular person/s.
Khatha
Extract is an Extract of the tax assessment register maintained at Municipal
Office giving complete details of the property like: Area of the site,
building, property tax levied, cess and total tax payable, name of the previous
and present owner of the property, etc.
Encumbrance Certificate is issued by Sub Registrar Offices for a specific period as
required by the applicant. It contain
the details of the property like: Sy. No. House No. boundaries, and
encumbrances on such property like: Sale, Gift, transfer, mortgage, if any,
which are registered at the said sub registrar’s office. However, the Encumbrance Certificate do not
reflect the encumbrance transactions of deeds which are not registered.
What
is the procedure for Khatha transfer and how do we know that the Khatha
transfer Certificate is genuine and original
Transfer
of Khatha of property to your name is to be done by the concerned
jurisdictional revenue authority under whose jurisdiction the property is
situated. For this purpose, you have to
apply for transfer of khatha in a duly filled Khatha Transfer application duly
signed by both the Seller as well as Purchaser i.e., yourself, and enclose a
copy of the registered Sale Deed, latest tax paid receipt and up to date
encumbrance certificate along with the necessary fee.
Thereafter,
the authorities do acknowledge receipt of the application and indicate the date
by which the process will be completed; however, the entire process is to be
required to be completed within 45 days.
Meanwhile, the authorities may also call for certain additional
information / document etc., if felt necessary for verification and confirmation. Thereafter, the Khatha of the property would be transferred into your name and an endorsement will be
issued in your name to this effect.
Thereafter, tax paid receipts on such property would be issued in your
name, which show that the said property stands in your name.
As
regards ascertaining whether the Khatha Certificate issued is genuine and original
or not, the Khatha Certificate is usually issued by the concerned
jurisdictional Corporation Office and as such you may directly visit such
office and obtain the same to confirm its genuineness and originality.
Do
the financial institutions permit the transfer of loan from one institution to
other and what is the fee charged for such transfer and whether it would be
better to transfer from one institution to other ?
Financial
Institutions allow the transfer of loan from one institution to another even
though they don’t want their existing loan accounts to be taken over by other
institutions. However, such institution
which allow transfer of loan account may charge foreclosure charges for such
transaction in order to minimize such transfer of loan accounts. It is left to the customer as to when to
transfer the loan from one institution to another taking into consideration
various factors of which the major point is to look into the rate of interest
besides other benefits which he would get from other institution on such
transfer.After obtaining in-principle
approval from the taking over institution or bank, such transfer of loan
account is possible.
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