How to Check for Legal Defects in a Property Title Before Purchase

Author: Advocate Harshit Sachar
Place of Practice: Ludhiana, Punjab
Jurisdiction: India

To check for legal defects in a property title, a buyer must verify the chain of ownership, examine registered sale deeds, obtain an encumbrance certificate, check revenue and municipal records, search for pending litigation, and confirm that the seller has clear and marketable title. Any break in ownership history or undisclosed encumbrance may indicate a defective title.

What Is a Legal Defect in Property Title?

A legal defect in title means the seller does not have clear, valid, and transferable ownership of the property.

Common defects include:

• Break in chain of ownership

• Forged or unregistered documents

• Pending litigation

• Undisclosed mortgage or charge

• Minor’s share without court permission

• Sale by unauthorized person

A defective title can result in loss of property or prolonged litigation.

Step-by-Step Process to Identify Title Defects

1️⃣ Verify the Chain of Title (20–30 Years)

Examine previous sale deeds and transfer documents for at least 20–30 years.

Check:

• Whether each transfer was legally valid

• Whether ownership passed properly at every stage

• Whether any document appears missing

A break in chain may signal future legal dispute.

2️⃣ Examine the Registered Sale Deed

Ensure the sale deed:

• Is properly stamped and registered

• Contains accurate property description

• Matches actual boundaries and measurements

• Reflects correct ownership name

Registration alone does not cure title defects.

3️⃣ Obtain an Encumbrance Certificate (EC)

An Encumbrance Certificate reveals:

• Mortgages

• Charges

• Registered loans

• Previous sale transactions

If a loan appears in EC, verify that a proper release deed is registered.

4️⃣ Check Revenue Records & Mutation

Verify:

• Jamabandi / revenue entries

• Mutation records

• Property tax records

Mismatch between sale deed and revenue record is a warning sign.

5️⃣ Search for Pending Court Cases

Check court databases and local records to verify:

• Partition suits

• Injunction orders

• Ownership disputes

• Land acquisition proceedings

Buying property under litigation can bind the buyer to court outcomes.

6️⃣ Verify Seller’s Authority

Ensure:

• Seller is actual owner

• Power of Attorney (if any) is valid and registered

• Company seller has proper board resolution

Unauthorized sales create serious title defects.

7️⃣ Check for Minor or Legal Heir Rights

If property was inherited:

• Confirm succession certificate or legal heir proof

• Ensure no legal heir has been excluded

• Check if minor’s share required court approval

Failure to obtain required permission may invalidate transfer.

8️⃣ Verify Land Use & Approvals

Confirm:

• Land is not government-acquired

• No restriction on transfer

• Proper building approvals exist

Unauthorized construction may affect title validity.

Red Flags That Indicate Defective Title

⚠ Sudden ownership transfer at undervalued price
⚠ Missing previous documents
⚠ Seller unwilling to provide original documents
⚠ Ongoing family disputes
⚠ Discrepancies in area or boundaries

Early detection prevents irreversible financial loss.

Can a Defective Title Be Corrected?

Sometimes yes, through:

• Rectification deed

• Release deed

• Court declaration

• Settlement among heirs

However, some defects may render title permanently unsafe.

Why Legal Opinion Is Important

A property lawyer evaluates:

• Legal validity of documents

• Risk exposure

• Marketability of title

• Possible future claims

Professional verification reduces long-term litigation risk.

FAQs

Is Encumbrance Certificate enough to confirm clear title?
No. It only reflects registered transactions, not unregistered disputes.

How many years of documents should be verified?
Typically 20–30 years for safe title examination.

Can a forged sale deed be challenged later?
Yes, but litigation may take years.

Is mutation proof of ownership?
No. Mutation is revenue entry, not conclusive proof of title.

Final Legal Insight

Clear title is the foundation of safe property ownership. Buyers must not rely on verbal assurances, broker claims, or mere registration. A systematic legal verification of documents, ownership history, and litigation status is essential to avoid future disputes.

Disclaimer

This article is intended for general informational purposes only and does not constitute legal advice. Property transactions depend on specific documents and factual circumstances. Readers are advised to seek professional legal verification before entering into any property transaction.