Generally 30 years tile search is done as to whether seller has clear and marketable title to property
2) seller must have chain of original documents
3) bank can ask for inspection of title deeds of 1952
Period covered in title search by bank
What is the maximum period under Indian law for a full due diligence title search for a big property by a lender bank ? If a property was acquired through inheritance through Registered Will and , though no probate was done,on basis of no objection affidavits by all legal heirs ,property was mutated by DDA in 1997 , based on the Will provisions, this property was made freehold through execution of registered conveyance deed executed by DDA in favour of the owners in 2011 . The previous owner purchased the property in 1952 through registered sale deed and was owner till 1996, when she expired. I have heard the banks do title search going back maximum 30 years. Please clarify how far back,on the above facts, can the bank or title search advocate in the present year 2021 check the derivation of title or chain of ownership (documents). Can they ask for the 1952 sale deed ?
Asked 3 years ago in Property Law
Religion: Sikh
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7 Answers
Is property tax or house tax payment or mutation in property tax records any proof of title at all ? Please clarify this since I have read that mutation in property tax records is only for payment of property tax and is no indicia or proof of title at all
Asked 3 years ago
Generally the banks will make a title search for a period of 30 years, but there is no particular law for this purpose.
Since there was only one owner from 1952 to 1996, the bank may not go beyond 1996 towards title search.
The mutation records or revenue records including the tax receipts are mere supporting documents to the title to the property.
The title of the property is recognised by a registered document only.
As the limitation to enforce an encumbrance on an immovable property is 12 years, generally, title-searches for 12 years or more would serve the purpose. However, public sector banks require title search for 30 years, as the limitation for the government is 30 years. Again, in a title search for 30 years, if any doubt crops up, a diligent lawyer would go further back in order to get a clarity.
There are two types of title documents, those conferring title and those evidencing title. Sale deed, partition deed, gift deed are some examples of the first type, meaning they convey the title by themselves. House-tax receipt or land tax receipt and a revenue document are documents merely evidencing title, as they do not convey the title on their own.
In this case, flg. documents are required to be seen in original by the mortgagee bank :-
1. SD of 1952.
2. Will
3. Mutation with DDA not MCD.
4. CD
5. Original Perpetual Lease Deed.
No it's not a proof of title just entry of name
Dear client,
as per your latest question, property tax or house tax payment or mutation in property tax records do not show sufficient evidence when it comes to proof of title and it just shows payment of taxes.
Thank you
