- Registration of a document is evidence of the transaction; it does not by itself guarantee that the seller had title. Title is traced back through the chain.
- A thirty-year chain of title is customary practice, not a statutory requirement; the real tests are an unbroken chain and the absence of competing claims.
- Agreements to sell, general powers of attorney and unregistered wills do not, on their own, transfer ownership of immovable property.
- Check the property against four sets of records: registration, revenue / land records, municipal records and the court docket.
Due-diligence sequence
- 01
Collect
Title deeds in the chain, the latest tax receipts, sanctioned plan, completion or occupancy certificate and any society or builder papers.
- 02
Search
Encumbrance search at the registration office; revenue-record entries; municipal assessment; court and tribunal search.
- 03
Verify
Chain of title, authority of signatories, stamp duty paid on each deed, and boundaries against the survey.
- 04
Report
Written opinion that identifies defects, curable and incurable, and conditions for closing.
- 05
Close
Draft the sale deed with title covenants, indemnity and holdback; register and mutate.
The documents behind a title
| Document | What it proves | What to look for |
|---|---|---|
| Registered sale deeds in the chain | Each transfer from owner to owner | Names match; recitals identify prior title; stamp duty paid; registered at the right office |
| Inheritance records — will, probate, succession certificate or partition deed | Title passing on death or by family arrangement | Probate where required; all legal heirs joined; partition registered |
| Revenue record (record of rights / khatian) | Who the State records as possessor and the land’s classification | Entry in the seller’s name; classification suits the intended use |
| Mutation order | Change of name in the revenue or municipal record | Latest mutation follows the latest deed |
| Tax receipts | Payment of land revenue and municipal tax | No arrears; assessee name matches |
| Sanctioned plan and completion / occupancy certificate | Lawful construction | Deviations beyond the plan; unauthorised floors |
| Encumbrance certificate | Registered charges, mortgages and transfers over a period | Period covers at least the chain; entries for mortgages without release |
Why registration alone is not enough
The Registration Act, 1908 requires registration of non-testamentary instruments that create or assign a right in immovable property above the prescribed value (section 17). An unregistered document that required registration is inadmissible as evidence of the transaction (section 49), with narrow exceptions. But registration records that a document was executed; it does not decide whether the executant owned what they sold. If the seller’s own title was defective, the buyer takes no better title: nemo dat quod non habet. That is why the chain is traced back, and why a seller’s own purchase deed — not the registration — is the first document to read.
Transactions that are not transfers
- Agreement to sell: creates a contract, not ownership (section 54, Transfer of Property Act). Protection comes from specific performance, not from title.
- General power of attorney sales and “will” transfers: the Supreme Court in Suraj Lamp & Industries v. State of Haryana (2012) held that sales through GPA/SA/will do not convey title and should not be recognised as transfers.
- Part performance (section 53A): a defensive right for a transferee in possession under a written contract, not title.
- Lis pendens (section 52): a transfer during the pendency of a suit is subject to the outcome of the suit — so a court search is not optional.
Limitation and adverse possession
A suit for possession of immovable property based on title must ordinarily be brought within twelve years of the possession of the defendant becoming adverse (Limitation Act, 1963, Schedule). A person in continuous, open and hostile possession for that period can resist the true owner’s claim and, in appropriate cases, claim title. For a buyer this cuts both ways: an old owner may no longer be able to recover property from a possessor, and a seller out of possession for long may no longer have a good title to sell. Physical inspection and enquiry about possession are part of diligence.
Red flags
Usually curable
- Missing mutation after a registered sale
- Municipal tax arrears the seller can pay at closing
- Release of an old mortgage the lender can issue a no-dues letter for
- Name spelling differences cured by an affidavit and publication
Often not curable
- A gap in the chain with no deed, will or partition bridging it
- A co-heir who never joined a partition and is not a party to the sale
- Transfer by a minor’s guardian without the court’s permission
- A pending suit or attachment covering the property
Document request list to the seller
- Every registered deed in the chain, with certified copies from the registration office
- Revenue extract and mutation orders for the last transfer
- Latest municipal tax receipt and assessment record
- Encumbrance certificate for the period requested by counsel
- Sanctioned building plan, completion or occupancy certificate
- Will and probate or succession certificate, if any link depends on a death
- No-dues letter from any lender, if the property was mortgaged
- Identity and authority documents of every signatory
For the procedure that follows diligence, see registration and stamp duty. For non-resident buyers, the NRI checklist adds FEMA limits.
Frequently asked
How far back should a chain of title go?
Practice is to trace thirty years or to a root of title that is clearly good — such as a registered partition or a government grant — but there is no statutory number. The relevant question is whether the chain is unbroken and the root is secure.
Does an encumbrance certificate prove ownership?
No. It lists registered transactions affecting the property over the period searched. It shows what has been registered against the property; it does not show title, unregistered interests, or court orders.
Is bank approval of a loan a title opinion?
A lender’s legal opinion protects the lender’s security. It is not a substitute for the buyer’s own diligence, which has a different purpose and may reveal issues the lender accepts.
What is a benami transaction and why does it matter?
A transaction in which property is held by one person for the benefit of another who paid for it. The Benami Transactions (Prohibition) Act, 1988, as amended in 2016, prohibits it and provides for confiscation, so a title chain that depends on a benami arrangement is a title at risk.
Statutes, thresholds and forms change by amendment and notification. This note reflects the position as understood at the date above; confirm the current text before acting. Not a substitute for advice from an advocate or chartered accountant on your facts.