Here is a list of eight safety measures one must take when buying Inherited from Property.
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The person from whom the property has been transferred to the present owner needs a thorough investigation. “One must confirm the original owner’s ownership by verifying the original title documents From sub registrar Office and other antecedents documents through which the person has acquired the property, says Neeraj Kumar, partner, DSK Legal. This includes a diligent and fair weight search for a period of 30 years in the office of the Sub-Registrar/Revenue. concerned authority. Checking mutation and payment of property taxes in the name of the owner and duly paid should also be confirmed. Kumar adds that if the property is flowing through succession, the death certificate of the original owner and the legal heir certificate issued by the competent authority should also be verified.
Verify Verity of Succession Documents
Along with this the buyer should be aware of fake documents like succession certificate. Real estate expert Nitin Bhatia says, “If possible, you can check the authenticity of the documents and keep the original documents with you. Once the buyer is assured that the correct procedure is being followed, he can enter all these details in his sale deed, he says.
Check Inheritance Details While Buying an Inherited Property
The buyer should first examine the succession process, i.e., how the property is transferred to the seller. “Make sure the seller has the legal right to sell his property and there is no other legal heir who can lay claim to the property. If the seller has got the property through a will, make sure that Will is genuine,” says former judge and Supreme Court lawyer Bharat Chugh. He adds that due diligence should be done to see if there is any challenge to the will and any competing wills, as in many cases the legal heirs have multiple competing wills. to make his claim on the property.
Compensation clause should be inserted
A buyer can also include an indemnity clause in the sale deed to further protect his financial interests. “The gist of this clause should be that in case of any future dispute over the inherited property, the seller shall compensate the buyer,” says Bhatia. In case of any doubt or high perceived risk, a separate indemnity bond can also be executed in court, says Bhatia. The main point of this clause should be that the seller shall defend the buyer in case of dispute over the inherited property.
Make all legal heirs either parties or witnesses
For greater security, all interested parties in the transaction should be made parties to the case. Kumar says, “All legal heirs of the original owner having any interest in the property should be parties to the proposed sale deal.” That there is no other legal heir to inherit the property.
The buyer should also insist on the inclusion of all legal heirs as corroborating witnesses. Says Bhatia, “It is important to secure the sale deed. If all the legal heirs become witnesses to the transaction, then none of them can have any claim on the property at any future stage.” Although this may be an operational issue of bringing all the stakeholders together. , but the issue may be clarified before closing the deal. “If the seller hesitates and is not able to share any logical reason, there is every reason to doubt the intentions of the seller,” warns Bhatia.
Pay Minimum Tokens Pennies
Often vendors Tokens insist on a high percentage of funds to seal the deal. Any buyer must pay a minimum token amount in any asset transaction. Arguing this, Chugh says that a buyer’s money should not be stuck if he is not satisfied with the title of the property he inherited. “If the seller insists on lump sum token money, it is the first red flag for the buyer,” says Bhatia. Also, a seller is always in a hurry to sell the property in case of a dispute.
Be careful when paying to multiple vendors
It is also to be noted that it is not necessary that all the sellers have equal share in the property. Therefore, one should only pay in proportion to the ownership. “If one is buying property from multiple sellers i.e. two or more sellers on the basis of succession certificate or probate, it is not necessary that all sellers will have equal share in the property. To keep away disputes, one has to pay only should be in proportion to the ownership as per the succession certificate or probate,” warns Bhatia.
Investigate any impending court cases on the property
Imminent court cases on the property should also be investigated, especially from unforeseen quarters. It is not always the case that only the legal heirs will fight among themselves to claim the property. It’s quite possible that they gang up and try to solve another issue under the carpet. “There was a case where the deceased owner had taken a loan against the property from a friend of his. After his death, there was no dispute between the legal heirs, but they refused to repay the loan. The deceased’s friend filed a case in the court. Kia to recover his dues from the sale of the property. In such cases, a buyer can hire a lawyer to check whether the suit against the property is pending or not,” says Bhatia.