(This article is part 1 of a three-part event report series) 

All property transactions in Bengaluru have to mandatorily be registered with the government. This is important as it provides buyers with essential safeguards; enhances transparency due to the requirement of comprehensive project disclosures; establishes standard practices; and provides mechanisms for dispute resolution.

The government has brought in multiple legislations over the years. While it has brought in some level of streamlining of the process, a lot is left to be desired. There are several types of property, which means you will need to deal with different agencies. In a country like ours, where people have traditionally relied on word of mouth rather than documentation, myriad issues can arise. Documentation has often been treated as incidental!

Before buying any property, it is essential to investigate all the documents provided by the present property owner and authenticate it with the agencies issuing the documents.

To know more about the legal issues related to property documentation, Citizen Matters, Bengaluru, organised a citizen clinic with advocate Mithun Gerahalli, who specialises in property law. The event, titled ‘Bengaluru citizen clinic: Decoding property documentation—your guide to sale deeds, khata, EC and more’, covered property documentation-related issues and the due diligence that needs to be followed.

Mithun provided insights on the complexities of land ownership, the importance of understanding property history, and the need for expert advice in property transactions. The event also addressed the challenges of unauthorised layouts and buildings, the need for clear government oversight, and the potential for legal issues related to commercial activities in apartments.

The due diligence process for new property buyers

What are the documents a new buyer should look for? 

That is a vast question. It depends on the character of the land/property:

• Types of property: It requires a survey number. Depending on whether it is an agricultural property or a site-type of property, specific regulations apply
• Agricultural property: For agricultural land, different rules and usage restrictions come into play
• For a BDA-allotted site: The character of the land matters, whether it is a designated site or part of a Bangalore Development Authority (BDA) allotment

The central aspect here is that the documentation of an agricultural property, varies from buying a site. As a thumb rule, before buying any property, look at the owners and trace the title of the ownership of the land. 

1. Source of land:
   • Determine how the land was acquired. Was it purchased through sale deeds or is it granted land?
   • If it is granted land, investigate the specific provisions under which it was granted. Different types of grants (such as agricultural grants, forest land grants, etc.) have varying conditions. Check if it is granted under specific provisions and what are the conditions? If there is any applicable to that grant?
2. Conduct thorough due diligence:  This involves checking land records, verifying ownership, and assessing any legal issues related to the property. 
3. Land’s history
   • Look into the land’s history, including past transactions, encumbrances, and disputes
   • If i is a land/site, then trace the title of the land where the site is formed. So, you should look at, at least 40 years of tracing of titles. Look at getting an encumbrance certificate just to see if the title deeds do reflect in the encumbrance certificates
   • Then look at other relevant documents, such as khata  extract or RTC (document of Rights, Tenancy, and Crops), for land, see if the name of the owners are reflecting in the RTC pahani or the relevant khata extracts or e-khata, etc. 
4. Layout conversion:
   • If the property is part of a layout (such as a housing society or residential development), determine if the layout is legally converted
   • A legally converted layout ensures that the property has proper approvals and adheres to zoning regulations
5. Sale deeds:
   • If the land was purchased, review the sale deeds carefully. These documents contain essential information about the transaction, including the parties involved, the sale price, and any encumbrances
   • Verify the authenticity of the sale deeds to ensure they are not fraudulent

6. Khata certificate:
   • Obtain an “A” or “E” khata certificate. An “A” khata signifies that the property is within the city limits and has proper documentation.
   • An “E” khata is for properties outside the city limits. Verify its authenticity.

7. Taxpayer Receipts:
   • Verify the property’s tax payment history. Ensure that all property taxes are up to date.
   • Check if there are any outstanding dues or penalties related to property taxes.

8. Sanction plan:
   • Review the sanctioned building plan for the property. This plan outlines the approved construction details.
   • Ensure that the property complies with the sanctioned plan to avoid legal issues later

(Consulting legal experts or professionals experienced in property matters is advisable. They can guide you through the paperwork, legal requirements, and any specific provisions related to the land)

Also read:

• Developers can sell sites only after developing the layout fully
• BBMP A khata issued illegally for hefty bribe: Councillor