What is a Property Title and Why is it Important?
When buying a property, whether it’s your first home or an investment, one of the most critical terms you’ll come across is the “property title.” It might sound like just another legal term, but it holds the key to ensuring that the property you’re buying is legally sound and free from disputes.
In this article, we’ll explain what a property title is, why it matters, and what you should check before finalizing a home purchase.
What is a Property Title?
A property title is a legal document that proves ownership of a property. It outlines who has the legal right to use, sell, or lease the property. In simpler words, it shows who owns the property and what their rights are over it.
The title also includes:
- Boundaries of the property
- Rights of the owner
- Any existing liens or loans against the property
- Easements, if any (such as a right of way)
Why is the Property Title So Important?
1.Confirms Legal Ownership
The most important reason to check the property title is to ensure that the seller is the true and legal owner of the property. If the title isn’t clear, you may face legal complications after purchasing the property.
2.Protects Against Fraud
Property-related fraud is more common than you think, especially in India. A clear title ensures that there are no fake claims or illegal sales attached to the property.
3.Essential for Home Loans
Most banks and housing finance companies, like Agrim Housing Finance, will only approve a home loan if the property title is clean. A clear title boosts your chances of loan approval and ensures a smooth disbursal process.
4.Affects Future Resale
If you plan to resell the property later, a clear and dispute-free title makes the process faster and more profitable. Buyers prefer properties with verified ownership and no legal complications.
5.Helps Avoid Legal Disputes
A verified property title protects you from future claims, such as inheritance disputes, shared ownership issues, or unpaid dues by previous owners.
What to Check in a Property Title?
Before buying a home, ensure the following:
- Title Deed: Check the original title deed. It should be in the seller’s name.
- Encumbrance Certificate: Confirms the property is free from loans or legal liabilities.
- Sale Deed: It’s proof that the seller has the right to sell the property.
- Property Tax Receipts: Make sure there are no pending property tax payments.
- RERA Registration: If it’s a new property, check if it’s registered with RERA for added security.
Final Thoughts
Understanding what a property title is and ensuring its clarity is crucial when you’re buying a new home. It’s not just a piece of paper – it’s your legal proof of ownership, and your safety net against future issues.
Before you make your big move, make sure your dream home stands on a solid legal foundation.
If you’re planning to buy a home and need trusted home loan support, reach out to Agrim Housing Finance – committed to helping you own your home with confidence and clarity.
