Title due diligence
One of the important aspects before purchasing any land parcel(s), is to check if the title is clear and marketable. Basically, this means to confirm whether the person selling the property is its owner and holds all necessary rights to transfer ownership of the property. We appoint a lawyer/advocate to get the title documents like sale deeds and property tax receipts scrutinized and to obtain a certificate confirming the title of the vendor. Normally previous 30 years title tracing is done keeping in mind the complexities of the land documents and limitations involved in claiming property rights.
Sub-Registrar Office Searches
The search reflects the transactions (change of ownership through deeds) and encumbrances (free from all legal dues) with respect to the land proposed to be acquired. Each state has a different methodology to carry out searches at the offices of sub-registrar (deed registering authority). For example, in Bangalore the Sub-Registrar issues encumbrance certificate (search report) whereas in Maharashtra advocate or person experienced in carrying out manual search in the sub-registrar offices issues the report. One has to make sure to check with the concerned authorities for the legal documents before going ahead with the property deal.
Public Notice
Before purchasing any property, it is always advisable to place a public notice in local newspapers (preferably in English and as well as in local language daily newspapers) inviting any claim over the land proposed to be purchased. This will help to know if there any claims or third party rights over the land.
Original Verification
Prior to concluding the sale transaction, it is advisable to verify if the original title documents with respect to the land forming part of the transaction are in place. This is to ensure that the seller has not created any third party rights/charge and parted with the originals. These original documents should be collected during the conclusion of the sale transaction.
Approvals & Permissions
If the property/land forming part of the sale transaction already has structures or building, it’s necessary to verify the approved plans, necessary permissions and NOCs are in place. Factors such as heritage rules, set-back for road widening which will apply to definite buildings & locations should also be considered.
Taxes & Khatha
Before purchasing a land, ensure the property taxes are paid upto date and original receipts for such payments are produced for verification. It is also necessary to ensure that the Khatha (revenue recording denoting the name of the owner) are available in the name of the owner.
Local laws
Purchaser of land should ensure that the local laws/rules don’t impose restrictions in buying lands. For example, in Karnataka a non-agriculturalist (who doesn’t own agricultural land), companies, firms and person with an income over 25,00,000 lakhs cannot purchase agricultural land. However such restrictions are relaxed in few other states.
Tenure of Land
The tenure of the land should also be verified while purchasing land. If the land is under lease and the excess tenure of lease is short and if there is no provision for renewal on old rent, the additional rent may be payable by the purchaser of the land. There is also a high possibility that there may be no renewal clause for the property as well.
Pledged land
The seller might have taken a loan from the bank by pledging or mortgaging their land. The buyer should ensure that the seller has paid back all the amounts due on the land. A release certificate from the bank is essential to determine that the land if free from all the debts.
Measurement of the land
To ensure that the measurements of the plot and its borders are accurate, we appoint recognized surveyor for measurement of the subject lands.
FSI or Floor space index
FSI means how much construction can be done on a piece of land. FSI is determined by the state’s Town and Country planning department. It also depends on the location of the plot. We check for the FSI & Ground Coverage allowed on the land.
For Acquisition & Mergers
The purpose of technical due diligence is to investigate the technical and commercial aspects of an investment opportunity, so it gives an independent, third party assessment of the science and technology associated with new and emerging enterprises and projects. As investors and occupiers look ever more closely at the risks of buying property assets, Technical Due Diligence reports which detail the physical condition of a property, are. And also provides a professional approach to addressing all matters relating to the property.
The Team
Our Technical Due Diligence Team will take care all the physical inspection of buildings and associated building services, to confirm their overall status and calculate property valuation, include:
Inspection of Building Status
Technical Documentation.
Cost Estimation
Operational Cost Analysis
Specialist Skills in Construction and Installation