How to Verify Property in Bangalore: A Step-by-Step Guide

To ensure a safe and legitimate real estate transaction, property verification is essential in India. It protects buyers from legal tussles, financial loss, and fraudulent practices that are common occurrences today due to the complexities of property laws, outdated land records, and general unawareness.

It may be a good investment when buying property in Bangalore; however, it is essential to verify everything thoroughly to avoid fraud, legal issues, or financial losses. Here is a step-by-step guide to ascertain whether the property you want to buy is genuine and free from encumbrances.

Importance of Property Verification

Property verification is the critical step of any real estate transaction that ensures an investment’s legality, authenticity, and safety. In India, the real estate market has often been marred with fraudulent practices, disputes, and unclear land titles that make proper property verification a vital necessity. It assures the buyer by eliminating all legal and financial risks associated with purchasing that property.

 Many reasons trigger the need for property verification, like fraudulent sales, unclear titles, encumbrances, and regulatory non-compliance. Cities like Bangalore witness fast urbanization, making the real estate market complex and exposing buyers to scams and dispute cases.

Verification of property documents will protect the buyer’s interest and ensure all compliance with the applicable laws and regulations. This comprehensive guide will detail the documents needed to verify property based on their purpose, importance, and validation method.

Key Documents to Verify Property

Property verification checks several key documents, ensuring the property has no liabilities or liens against it. Here are some of the most important documents:

1. Sale Deed

The sale deed is one of the most critical documents in transferring a property; it is the legal evidence showing the sale and transfer of title from the seller to the buyer.

Purpose

• It establishes ownership rights in the buyer.
• Is the principal document to prove a sale.
• Contents of the Sale Deed
• Information of the buyer and seller.
• Description of the property, including its limits, location, and measurement.
• Terms and conditions of sale.
• Sale consideration (amount paid).
• Both parties’ and witnesses’ signatures

Verification Checklist

• Ensure that the sale deed is registered at the Sub-Registrar’s Office as stated in the Registration Act, 1908.
• Verify that the seller’s name matches the names on the ownership records
• Ensure that there are no discrepancies in the document or unauthorized alteration.
• Ensure that there are no prior pending sales of the property.

How to Get it and Verify

• Get a certified copy of the sale deed at the Sub-Registrar’s Office.
• Engage a property lawyer to scrutinize the document carefully

 2. Encumbrance Certificate(EC)

An Encumbrance Certificate is a legal or financial document that shows the validity of whether a property exists in any form of liability and debt, such as mortgages, loans or litigation.

Purpose

• Concurs that the property exists in a free-form encumbrance.
• Ensures no third party has the rights to the property.

EC Type

• Form 15, given if the property has encumbrances.
• Form 16: Given if the property doesn’t hold any encumbrances.

Verification Checklist

• Check the EC for entries with guarding mortgages, leases, and court cases.
• Check whether the EC covers the intended period of verification, which is either 13 or 30 years.
• Verify that the information in the EC matches the property’s title deed and ownership records.

How to Obtain and Verify

• Get the EC from the Sub-Registrar’s Office or obtain the same from the Karnataka government’s online portal, Kaveri Online Services.
• Verify with local land records.

3. Khata Certificate and Extract

The local municipal body or panchayat issues the Khata certificate and extract. Khata documents are essential for properties in Bangalore and important in deciding ownership and tax liabilities.

Purpose

• Khata Certificate: Issued to register or transfer a property.
• Khata Extract: Details the assessment of the property and payments made towards tax.
• Khata Documents Content
• Khata number.
• Owner’s name.
• Property size and address.
• Assessment details regarding taxes.

Verification Checklist

• Ensure the Khata is in the seller’s name.
• Satisfy yourself that the Khata certificate and extract issued are from the Bruhat Bengaluru Mahanagara Palike (BBMP) or any other local body.
• Satisfy yourself that property tax payments are paid up.

How to get and verify

• Obtain the Khata certificate and extract it directly from the BBMP office or its online portal
• Cross-check property tax receipts and payment records.
• Other Documents to Verify
• Along with the Sale Deed, EC, and Khata documents, the following are the documents of importance to verify the property:
• Land Conversion Certificate
• Issued for agricultural land converted into non-agricultural purposes.
• Available at the Department of Revenue.
• Approved Building Plan
• Check if the BBMP, BDA, or Local Planning Authority sanctions the building plan.
• Ensure that all the zoning and building bylaws are met.
• No Objection Certificates
• Obtain the NOCs from the respective departments, such as electricity, water, and sewage.

RERA Registration

• Verify the registration with the Real Estate Regulatory Authority (RERA) Karnataka for new projects.
• Check the project details and compliance on the official RERA portal.

Property Verification Process

Property verification is the best way to ensure that a real estate transaction is secure and transparent. Examining legal, regulatory, and financial considerations regarding the property in question occurs to mitigate risks and better protect the buyer’s investment. This guide provides step-by-step details on verifying three critical aspects:

• Checking the title deed
• Confirming land use as per zoning regulations
• Developing credentials for new projects

1. Verification of Title Deed

The title deed is the foundation for property verification, as it sets up ownership and the legal status of the property.

Importance

• It will ensure that the seller owns the property.
• The property is free from any legal disputes or claims.
• The sale transaction is genuine.

Verification Process

Original Title Deed: Check whether the title deed is original and registered with the Sub-Registrar’s Office per the Registration Act, 1908.

Ownership History: Find out the ownership history for at least 13 years. Check the title deed for the last 30 years to determine any earlier disputes or claims for more security.

Encumbrance Check: Verify the title deed with the Encumbrance Certificate (EC) to ensure no pending mortgages, liens, or legal issues.

Legal Assistance: Hire a property lawyer to examine the title deed for errors, unauthorized changes, or forgery.

Red Flags to Look Out For

• Differing names of the owners in the documents.
• Unrecorded title deeds.
• Liens or notices of lien attached to the property.

2. Verification of Land Use (Zoning Regulations)

Verification of land use ensures that the property adheres to zoning regulations and is appropriate for the proposed use (residential, commercial, or industrial).

Importance

• Avoids legal problems resulting from improper land use.
• Compliance of the property with local plans and development norms.
• Defense of the buyer against probable demolition or penalty for contravention of the statutory laws.

Verification Procedure

Land Use Certificate: Succeed in procuring the land use certificate from the authority responsible for planning local authorities like BDA or BBMP.

Zoning Information: Verify the details about zoning classification, such as residential, commercial, and agricultural type of use and whether the property is allowed to be used for the intended use or not.

Conversion Certificate: Ensure that the Department of Revenue issues the agricultural to non-agricultural conversion certificate.

Building Approvals: Ensure that the building plan approved does not violate the zoning and building bylaws. Any unauthorized construction will attract penalties or demolition.

Red Flags to Look Out For

• Actual land use does not match the zoning classification.
• Conversion certificates are missing.
• Building plans are pending approval.

3. Verifying Developer Credentials for New Projects

In new projects, the developer’s credibility and compliance with legal requirements must be verified to avoid delays, defaults, or substandard construction.

Importance

• It ensures that the project adheres to legal and regulatory standards.
• Protects from fraudulent or unreliable developers.
• Guarantees timely delivery of the property.

Verification Process

RERA Registration: Verify the project’s registration with the Real Estate Regulatory Authority (RERA). The RERA portal details the project’s approval status, timelines, and compliance with legal standards.

Developer’s Track Record: Research the developer’s past projects, delivery timelines, and customer reviews to assess their reliability.

No-Objection Certificates (NOCs): Ensure the developer has obtained all required NOCs, including fire safety, environmental clearance, and utilities (water, electricity, and sewage).

Legal Due Diligence: It should check for all litigations or disputes against the developer/project.

Payment Plans: It has to look into the payment plan in synchronization with the project-related progress milestones.

Red Flags to Look For

• Projects or the developer are not registered on RERA.
• Delayed or abandoned the previous projects.
• No clarification is there about the approvals/permissions.

Outcome

With a verified developer, it ensures all such issues related to delay in possession, default, and poor quality construction.

Common Challenges in Property Verification

Though highly important, property verification is often marred by many challenges that may jeopardize the process for the buyers. Knowing these challenges will lead to proper precautions to ensure a risk-free transaction. Here are some of the most common challenges met during property verification:

1. Fraudulent Documentation

Type of Challenge

• Fake and forged title deeds and property documents are some of the biggest threats in the real estate business.
• Sellers may mislead buyers by creating fake ownership documents or tampered papers.

Consequence

• Results in financial loss and court cases.
• The buyer will lose the property right if it is later found that documents are forged.

How to Resolve

• Always demand to see the original documents.
• Verify the documents with the Sub-Registrar’s Office and other local authorities.
• Hire a property lawyer to authenticate the documents.

2. Litigation Properties

Nature of the Problem

• Some properties may be involved in pending litigations over ownership, encroachments, or zoning violations.
• The seller may hide the information about pending litigations.

Effect

• It creates legal and financial problems for the buyer.
• It may delay the possession or even cancel the sale.

How to Deal

• Obtain an Encumbrance Certificate (EC) to verify the pending litigations or claims.
• Consult an attorney to analyze the property’s court records or legal notices.

3. Ambiguities in Ownership

Nature of the Issue

• Joint ownership, inherited properties, or incomplete records can create confusion.
• Properties with multiple heirs or unknown claimants often become disputed.

Impact

• May delay or abort the transaction of the property.
• This may give rise to future disputes or legal challenges.

How to Solve

• Verify the ownership history and trace the chain of title for at least 30 years.
• Demand a release deed if the property is owned by more than one party.

4. Non-Compliance with Regulations

Type of Problem

• Properties may not conform to zoning regulations, land-use policies, or building codes.
• Developers may not obtain the required approvals and No-Objection Certificates (NOCs).

Consequences

• Subject to penalties, demolition, or denial of essential services like electricity and water.
• Buyers may be liable for illegal constructions.

How to Deal

• Verify that the land use complies with the zoning regulations.
• Verify whether the building plan is approved and NOCs are mandatory.
• Check the registration status of the project on the RERA portal.

Role of Property Lawyer in Verification

The property lawyer plays a vital role in navigating the complex verification process of a property. Their legal expertise simplifies the process and gives the buyer the confidence and security that the property is genuine. Property Verification can be done by:

1. Document Review and Authentication

• Analyzes title deeds, sale agreements, and other significant documents for errors or forgery.
• Checks the chain of title and clear encumbrances and claims.

2. Legal Due Diligence

• Conducts historical research about the property and seller.
• Reviews litigation history and government communications.
• Review zoning regulations.

3. Regulatory Compliance Advisory

• Verifies that the property complies with local laws, zoning regulations, and building regulations.
• Assists in obtaining the required approvals and permits.

4. Dispute Resolution

• Provides legal representation in case of disputes or litigation.
• Helps in drafting legally sound agreements to avoid future conflicts.

5. Protection from Fraud

• Identifies red flags in documentation and transactions.
• Advises on measures to mitigate risks and prevent fraudulent activities.

Importance of Due Diligence and Professional Assistance

Property verification is a complex yet necessary process for a safe and transparent real estate transaction. Some problems experienced include fraudulent documentation, litigations, and non-compliance with regulations. A property lawyer will simplify the verification process, mitigate risks, and ensure legal compliance. The buyer should spend time and energy verifying the property details and seek professional assistance to safeguard the investment and long-term peace of mind.

Property verification is a safety measure that helps avoid fraud, disagreement, and financial loss from real estate transactions. In the dynamic marketplace of Bangalore, it is paramount to verify all the essential documents like the sale deed, encumbrance certificate, and Khata certificate, along with an extract. Lawyers can be consulted, local government offices can be contacted, and digital resources can be used for verification. Proper diligence during verification protects the buyer’s investment and will result in long-term peace of mind.