For transactions relating to the transfer of property, especially those relating to immovable property, a proper Title Verification of property is highly pertinent. Conducting a proper title verification is especially significant for banking and finance institutions, and other NBFCs for lending purposes.
A thorough verification report gives a clean chit to the title of a property. Title verification of property affirms that the property is owned by the person claiming the property to be theirs and warrants that the title is not affected by any mortgage, lien, tax liability or other such encumbrances.
Property title verification also sanctions that the property is not a subject matter in any legal dispute pending before an Indian court and no third party has a claim over it.
How Title Verification Helps Banks?
A title verification of property report validates the title for the lenders that process loans by accepting houses and other immovable properties as security. Proper due diligence is required while processing loans and for protecting the lender from encumbered assets.
The banks need to get a complete verification done regarding the owner’s title to ensure that the loan is disbursed to the actual owner of the property.
Additionally, in case of resale of property, transfer of loan balance and loan top-ups, the banks need to calculate the estimated market value, age, construction, layout, locality, etc.
A title verification of property report provides a quality check of the property, ensuring that the property passes the valuation benchmarks set by the bank.
The title verification process includes getting the document verified from the office of Sub-Registrar. In case of commercial property, the banks need to get the title verification done for property documents from other appropriate authorities like the Registrar of Companies. Revenue Officer and Local Municipal Authorities.
How LetsComply Helps Banks With Title Verification Of Property
LetsComply acts as the Virtual CFO for banking, finance and other NBFC institutions and assists them with a complete title verification of property they receive as security against loans granted by them. LetsComply’s team of legal, financial and taxation experts makes it easier for banks to process loans without worry by handling their entire legal verification process.
LetsComply’s advocates assist banks and other financial institutions with the title verification of property they accept as collateral against loans. A property advocate can draft an unbiased legal opinion about the property based on the information gathered through verification of the different documents provided by the bank.
The legal report presented by the lawyer highlights all kinds of encumbrances present in the property like third-party claims, outstanding bills, mortgage, easement, pending property taxes, etc.
The bank is also able to fix the market value of property on the basis of legal verification report submitted by the advocate and estimate an appropriate amount for the loan to be granted.
LetsComply can be contacted at +91-9717070500 or through an email at firstname.lastname@example.org.