All You Need To Know About Title Deed Of Property

Introduction

Whether you are purchasing a new home or a commercial property, or dealing in real estate transactions, understanding the nature and function of a title deed of property is essential. It is central to economic activity and personal security. This comprehensive guide will explore the key elements of title deeds, the different types of deeds, the roles and responsibilities of parties involved in property transactions, and the steps to register and maintain title deeds.

What is a Title?

The term ‘title’ refers to the legal concept of ownership rights over a property. These rights include the right to use the property, the right to sell or transfer the property, the right to lease the property, and the right to control who else can use the property. Titles are recorded and maintained by the government or land registry offices to provide a public record of ownership. The process of obtaining a clear title involves a thorough investigation known as a title search. This search aims to uncover any issues that could affect ownership rights, such as liens, encumbrance certificates, or legal disputes. A clear title protects the investment and avoids future legal complications.

What is a Deed?

A deed is a formal legal instrument employed to convey ownership of real property from one party to another. Serving as evidence of the transfer, a deed meticulously outlines the transaction's particulars, including the identities of the parties involved, a precise property description, and any stipulated terms and conditions.
To be legally enforceable, a real estate deed must adhere to specific legal prerequisites. These requirements include:

• The identification of the grantor (the person transferring the property) and the grantee (the person receiving the property)
• A clear description of the property being transferred
• The grantor’s intention to transfer the property
• The grantor’s signature
• Notarisation with witnesses in some jurisdictions

What is a Title Deed of Property?

These are the most important documents in any property transaction.
A title deed of property is a specific type of deed that not only transfers ownership but also establishes the legal title to the property.

In other words, the title deed:

• Is a definitive record of ownership
• Asserts legal rights to the property
• Ensures that the property is free from encumbrances

The buyer cannot legally recognise or enforce rights without a valid title deed. The deed includes important details about the property, such as its boundaries, easements or rights of way, and any restrictions or covenants that may apply. Since these details can impact the use and value of the property, involved parties should thoroughly review the title deed before completing a transaction.

What should a title deed contain?

Any title deeds must include:

• A clear description of the property, including its size, boundaries, and location
• Identification details of the legal property owner(s)
• The exact date the property was last transferred to its current owner
• The purchase price if the property was bought from someone else
• Any existing debts or claims against the property, such as a mortgage
• Specific conditions or requirements for owning the property
• Official confirmation of registration, including the date and seal from the relevant government office

Types of Title Deeds

There are the following types of land registry title deeds in India:

• Sale Deed

  A sale deed is the most common type of title deed. It formalises the transfer of ownership from a seller to a buyer for a specific property. For it to be legally binding, the deed must be registered at the local land registry to officially record the transfer. This legal document outlines the terms and conditions of the sale. These include property details, the purchase price, and other relevant information.

• Gift Deed

  A gift deed is used to transfer property ownership without receiving anything in return. Unlike a sale deed, there's no monetary exchange. Despite this, a gift deed still requires registration to be valid.

• Mortgage Deed

  When a property is used as security for a loan, a mortgage deed is created. This conveys that the borrower (mortgagor) has transferred ownership rights to the lender (mortgagee) until the loan is repaid. It outlines the terms of the loan, including interest rates, repayment schedules, and foreclosure procedures.

• Lease / Rental Deed

  A lease or rental deed grants temporary possession of a property to a tenant. It includes the rent amount, duration, and rights and responsibilities of both the landlord and tenant. While a lease deed doesn’t transfer ownership, it’s still an important legal document that defines the relationship between the parties involved.

• Warranty Deed

  A warranty deed is a title deed that provides the highest level of protection for the buyer. It guarantees clear ownership and the absence of undisclosed claims. There are two primary types of warranty deeds:

  • General warranty deed:

    It offers the strongest protection, as the seller guarantees clear title from the property’s inception.

  • Special warranty deed:

    It provides protection only for the seller’s ownership period, not for any previous owners.

• Quit claim Deed

  A quitclaim deed transfers ownership without any warranties or guarantees. It clears up property title issues or transfers between family members. While it’s a simple document, the parties involved must understand its risks.

• Pledges

  A pledge is when someone transfers ownership of something to another person as security. This transfer is documented by a legal agreement called a trust deed. Unlike a mortgage, a pledge doesn’t involve borrowing money.

• Other Types of Title Deeds

  There are various other types of title deeds used in specific circumstances:

  • Chattel mortgage deed: Alternative home-purchase loans help those who may not qualify for traditional mortgages
  • Life estate deed: Grants ownership for the lifetime of a specific individual
  • Grant deed: Commonly used in some states, it implies ownership but may not offer warranties
  • Beneficiary deed: Allows property to be transferred directly to designated beneficiaries upon the owner's death
  • Fiduciary deed: Used when property is held in trust
  • Special purpose deed: Created for specific purposes, such as conservation easements or land development restrictions

  You may find these different types of title deeds in real estate transactions. Once you comprehend each type's implications, you can select the appropriate deed for your specific needs.

  Roles & Responsibilities of Buyer and Seller in a Sale Deed

  Making and maintaining deeds in a real estate transaction comes with a set of responsibilities.

  • Buyer’s Responsibilities in a Title Deed of Property

    Here’s what a buyer should do:

    • Conduct a thorough title search to protect themselves and their money.
    • Verify that the seller is the rightful owner of the property. They should examine the seller’s title deed to confirm ownership and ensure that there are no outstanding claims or mortgages.
    • The buyer should fulfill all contractual obligations outlined in the sale deed, including paying the agreed-upon purchase price and satisfying any other conditions stipulated in the contract.
    • Before finalizing the purchase, the buyer should conduct a thorough property inspection to identify issues.
    • Once the property transaction is complete, the buyer should register the transfer of deeds to protect his rights.

  • Seller’s Responsibilities in a Title Deed of Property

    Here’s what a seller should do:

    • The seller must provide a clear and marketable property title.
    • Before transferring ownership, the seller must take the necessary steps to remove any existing encumbrances from the property.
    • The seller is responsible for disclosing any known defects or material issues related to the property. They should provide accurate information about the property’s condition, structural integrity, and any existing repairs or maintenance issues.
    • Upon completion of the sale, the seller must deliver the original title deed to the buyer.
    • The seller must fulfill the contractual obligations outlined in the sale deed. It includes allowing access for property inspections, delivering possession, and cooperating with the buyer throughout the closing process.

  How to Register Title Deeds?

  The process of registering a title deed differs from state to state in India. For example, to register a title deed in Karnataka, you can use the Kaveri Online Services portal or visit the sub-registrar office where the property is located.

  Here is a detailed step-by-step process for online registration of the title deeds:

  1. Go to the Kaveri Online Services portal
  2. Upload the required documents
  3. A summary is generated, which is then approved by the sub-registrar
  4. Calculate the stamp duty and guidance value
  5. Pay the registration fee and stamp duty online
  6. Schedule an appointment at the sub-registrar office for final signing
  7. Visit the office on the scheduled day to complete the process

  Here is a detailed step-by-step process for offline registration of the title deeds:

  1. Visit the sub-registrar office in the area where the property is located
  2. Submit the required documents
  3. Have the seller and buyer sign the registration document, along with two witnesses
  4. Pay the registration fee and stamp duty
  5. Collect the registration document after the time specified by the sub-registrar

  Note: Most Indian states impose a tax of 5 to 7 percent of a property’s total value as stamp duty, plus an additional 1 percent for registration fees. Consult a real estate attorney to ensure all legal aspects of the transaction are handled correctly.

  Role of Certified Copy of Title Deeds

  A certified copy of the title deed is legal proof of an individual’s or entity’s ownership rights over a specific property. The relevant land registry or government authority issues this certified copy. It:

  • Facilitates Transfer of Deed

    When transferring ownership, whether through sale, gift, or inheritance, a certified copy of the title deed allows for transfer and ensures that the new owner gets the legal ownership rights.

  • Securing Loans

    Many financial institutions require a certified copy as security when granting home loans.

  • Resolving Disputes

    A certified copy of the title deed is vital evidence in property disputes or legal proceedings to establish ownership claims. It helps resolve conflicts on property boundaries, rights, and encumbrances.

  To obtain a certified copy of a title deed, you need to:

   

  • Locate the appropriate government office:

    Identify the land registry or government department responsible for maintaining property records in your area.

  • Provide necessary documents:

    Present valid identification and proof of ownership, such as a copy of the original title deed or other supporting documents.

  • Pay applicable fees:

    Submit the required fees to obtain a certified copy of the title deed.

  • Collect the certified copy:

    Once the verification process is complete, you will receive a certified copy of the title deed.

  Avoid relying on uncertified copies, as they may not have the same legal standing.

  What is the Title Deed to Commercial Property?

  A title deed for commercial property is a legal document that establishes commercial property ownership. While similar in principle to residential house deeds, commercial title deeds are more complex due to their nature and uses. Their features are:

  • Detailed Property Description

    Commercial title deeds comprehensively describe the property, including its boundaries, dimensions, and any easements or restrictions.

  • Ownership Structure

    The title deed clearly outlines the ownership structure of the commercial property, whether owned by an individual, partnership, corporation, or other legal entity.

  • Restrictions

    Commercial title deeds will specify the zoning classification of the property and any applicable land use restrictions that affect its permitted uses.

  Title Deed vs Sale Deed

  Although these two phrases are not identical, they tend to be used interchangeably. The difference is as follows:

  Feature	Title Deeds	Sale Deeds
  Definition	A conceptual representation of ownership rights over a property	A legal document that transfers ownership of a property from one person to another
  Legal Status	Not a standalone legal document	A formal legal document that must be registered
  Purpose	To establish ownership	To transfer ownership
  Content	Includes property description, owner’s name, and any liens	Includes detailed information about the property, buyer, seller, consideration, and transfer of ownership
  Role in Transaction	Precedes the sale deed, outlining initial ownership	The primary document for property transfer

   

  Conclusion

• Anyone involved in real estate transactions must understand the various aspects of title deeds. By comprehending the different types of deeds, the responsibilities of buyers and sellers, and the process of registering and maintaining title deeds, you can confidently deal with real estate. Whether dealing with residential or commercial property, a thorough understanding of the title deed of a property and its significance helps in securing and managing property ownership.

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  Frequently Asked Questions (FAQs) on Title Deeds

  What are the benefits of a Title Deed?

  A title deed offers security, clarity, and efficiency in real estate dealings. The deed offers several advantages, including:

  • Serves as proof of ownership, empowering you to legally possess, use, and dispose of your property as desired.
  • Provides essential legal protection by safeguarding your rights against unauthorized claims or disputes.
  • Facilitates property transactions by providing clear evidence of ownership for buyers, sellers, lenders, and other stakeholders involved in the deal.

  How to choose a trusted company to perform the title deed poll?

  Look for a company with a proven track record, expertise in land registry title deeds, and a strong reputation. Consider their experience, customer reviews, and professional qualifications. A trustworthy company will guide you through the process, ensuring accurate documentation and compliance with legal requirements.

  Can I buy or sell property using Title Deeds?

  Yes, title deeds are essential for buying and selling property. Buyers need to obtain a clear and unencumbered title deed for full ownership rights when purchasing a property. Likewise, when selling your property, sellers need a valid title deed to attract buyers.

  Is the presence of property papers mandatory for getting a title deed?

  Yes, property papers are required to obtain a title deed. These papers are evidence of your ownership or interest in the property and will enable the transfer of ownership through the title deed. Without proper property papers, the title deed process cannot be initiated.

  How long does the title deed take?

  Typically, obtaining a title deed takes approximately 4-5 business days when processed through the Sub-Registrar's Office (SRO). However, this timeframe can vary based on factors such as document complexity and the SRO's workload.