What is Property Search Report?
The Land Title Search Report indirectly helps in knowing about its present status regarding its encumbrance, whether it is mortgaged or free from any claims.
A Land Title Search Report traces the history of a property. It describes in detail about the situations like- who was the original owner of the property, how it has moved hands over a period of time before reaching the present seller.
Some features of Land Title Search Report:
It is prepared by an advocate, who after visiting the registrar’s office and inspecting the documents of the property, issue a title certificate.
It is an important part of a housing loan process. It helps in the approval of the home loan.
It is not necessary that the search should only be done by the advocate. A person can also do a survey of the title of the property himself by visiting the office of the registrar.
The report indicates whether the land is free from any encumbrances or not and there is no mortgage on it.
This search on the title of the property is taken for a period of the past 30 years.
It is mandatory on the part of the promoter to annex a copy of the report in the ‘agreement to sell’ with the intended purchaser. It will state if there is an existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely.
In the same way, it helps in the banking industry to processing the loans. Banks do not finance a mortgaged property or one under legal dispute because it reduces its security and increases its risk exposure. In order to avail a housing loan the title of the property should be clear and marketable.
In most of the cases, the lending bank has its own advocate who specializes in this matter. The cost is very less and is built-up in the processing and administration charges of the bank for sanctioning and disbursing of the loan.
This report acts as security for the purchase of the property. The buyer feels safe after receiving such report as he gets assurance that the property he has purchased is free from mortgage.
A search report gives a buyer the confidence that he is undertaking a transaction with a genuine party.
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