Legal Due Diligence of Property? Here are 7 things you should check
7 things to do to check the legal aspects of a property for it’s transaction on your own.
Checking on the legal aspects of a property is easy. Simply make a note of these points and keep ticking them as you check them:
- Insist on seeing the original documents: There’s a lot of scope for foul play with photocopies. So, never settle for photocopies, no matter what the excuse the other party give
- Thoroughly check the possession of property: Possession plays major role in checking legal aspect of any property.
- Check ownership of the property: Visit authorities like DDA, MCD etc.to make double sure about the ownership of property.Check whether the party has General Power of Attorney or Conveyance Deed. A Conveyance Deed means the party has absolute powers to execute the sale. If it is a GPA, it has limited rights , read the document carefully whether they have right to sale or lease or not.
- Verify original stamp of sub registrar: This is critical to the authenticity of the documents
- Conduct a due diligence at the sub registrar’s office: Check for these aspects for any registered deed with regarding their ownership –
a) Book number
b) Volume number
c) Registration no.
d) Page number - Check if there is an existing loan on the property: Go through the statement of accounts / income tax returns or accounts. If there is a loan, it will show up.
- Check pending litigation of property: Hire a good lawyer if need be. He will do the research and get back to you with the pending litigation.
An LL. M From Kuruksherta University, Kunal Madan has served over 9 years in this profession. He heads a law firm in Delhi with over eight associates working under him. Besides advocacy he loves good food and plays cricket and chess.