(Commonwealth union)_Property ownership was supposed to be an asset, but the unfortunate truth is that it has turned into a liability when compared to other asset classes. With 7.2 million court cases preventing the construction of $200 billion (estimated) in real estate, society’s lack of desire and political resolve to tackle a long-standing problem of fellow citizens must be disappointing.
All of these challenges stem from the model that India has adopted. In the United Kingdom and Singapore, conclusive titling is used, which means that the government validates the seller and the property before approving the transaction. Because the government has certified the seller’s ownership, the corresponding agency issues the purchaser a single title deed.
In India, however, the government is not liable for purchases/sales, and it is up to the purchaser to establish whether the seller is the owner.
Many individuals believe that a sales deed is a title. But I digress; let us return to the more practical question: should I buy real estate knowing all of these doubtful facts? Absolutely. Land is not generated on a regular basis, and technology is unlikely to change that anytime soon. I have yet to find a scientific or economic research that discusses the fall in land prices once Elon Musk colonises Mars.
With that being said, it is critical to remember the importance of thoroughly researching property records before making a purchase. The initial step in this procedure is to obtain an encumbrance certificate (EC). In some places, this is also known as a non-encumbrance certificate (ask the government). In some states, an EC shows the current owner of the property as well as the transaction chain dating back 20-25 years.
Consider the EC to be a skeleton that provides direction on all the papers that must be collected and supplied for a legal opinion that can be retrieved using a survey number associated to the property. There are apps available nowadays to make EC available at your fingertips. Nevertheless, those who are more adventurous and masochistic can visit the local Sub Registrar Office (SRO) for a once-in-a-lifetime excursion to retrieve the EC.
