For sale or purchase of any property, it is essential that the property must hold a clear and marketable title i.e. the property is saleable and has a clear title
Before the purchase of any property, it is required to examine the documents of ownership in government revenue records; to ascertain as to whether the property has a clear and marketable title and to confirm as to whether it is affected by any encumbrances, rights or interests of any third party. The purchaser through his advocate/solicitor should investigate in this matter before entering into an agreement.
For the investigation of the title, the advocate/solicitor or his authorised search clerk makes the inquiries with the office of Talati, Tahasildar, City Survey Officer, Collector etc. and collects the information of mutation entries related to the ownership of the property from government revenue records, for a minimum 60 years, and prepares the report on the sequence of change of ownership from one hand to other up to date, along with all the information of third party rights if any. This exercise is known as ‘Title Search Report’.
Based on the Title Search Report, response to public notice, and examination of title deeds, (i.e. original conveyance / sale deeds declarations and other revenue and public documents more particularly described in the chapter of ‘Documents of Ownership’) the advocate/solicitor concerned, after getting satisfied, that there is no risk to purchase the property, issues ‘Title Clearance Certificate’ to the effect that the property holds clear and marketable title together with search report.
The title clearance certificate consists of following information:-
1. Name of present owner/seller and sequence of change of ownership, and third party rights if any
2. Description of property i.e. plot no, scheme no, survey & hissa no, city survey no, name, village, taluka and district and zone in which the property falls
3. Area of property
4. Short notes and findings from search report
5. Certification of clearance and marketability of title of the property.