Stories
Buying Ancestral Property? Beware! Check These 8 Crucial Points Before You Buy
- •Thoroughly understand the property transfer history and check the 30-year Encumbrance Certificate.
- •Verify the authenticity of the succession certificate to prevent fraud and record it in the sale deed.
- •Ascertain how the owner acquired the property and ensure the seller has legal rights, with no other heir claims.
- •Include a clause in the sale deed stating sellers must resolve future disputes; consider a separate liability bond if risk is high.
- •Make all relevant heirs parties or witnesses, obtain their signatures on the sale deed, and be suspicious if they refuse.
- •Pay only a minimum advance; be cautious if pressured for a large amount, to avoid funds getting stuck.
- •If there are multiple sellers, verify each person's share based on the succession certificate or will before completing the transaction.
- •Hire a lawyer to check for any court disputes, including those from family members or creditors, before purchasing.
Key Questions Answered
When buying ancestral property, thoroughly check the original ownership documents at the Sub-Registrar's office, a 30-year Encumbrance Certificate, mutation records, and tax payment information. If the property came through inheritance, verify the original owner's death certificate and the authenticity of the succession certificate.
Including all relevant heirs as parties or witnesses ensures that no other claimants can dispute the transfer later. You should request a family tree and a certificate of living claimants, and get all their signatures on the sale deed. If sellers are hesitant to involve other heirs, you should be suspicious and resolve the issue immediately.
To protect against hidden liabilities, you should hire a lawyer to check for any pending lawsuits or court disputes involving outsiders or family members. Creditors might have gone to court if the original owner took a loan and failed to repay it. Additionally, include a liability clause in the sale deed and secure a separate court liability bond if the risk is high.
