Title and Land Records Due Diligence for Valuers
The valuer does not certify title, but must match the documents to the land and say what was assumed.
A registered valuer does not certify title. The lender's lawyer does that. But a valuation report rests on an identified property with an identified owner and a known set of rights, and the valuer is the one who stands on the site. If the deed describes 1,200 sq ft and the approved plan shows 1,050, or the boundaries in the deed do not match the plot, that is the valuer's finding to report.
This page covers what each title and land record proves in law, the checks a valuer makes, and how to word the report so that title assumptions are stated, not hidden.
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What Each Document Proves
Registered sale deed
What it establishes
Transfer of ownership. For tangible immoveable property of ₹100 or more, sale needs a registered instrument (TPA s.54).
Its limit
Only as good as the seller's own title; read the chain behind it.
Chain of earlier deeds
What it establishes
How ownership reached the present owner.
Its limit
A break (an unregistered link, a missing heir's consent) is a title defect.
Encumbrance certificate
What it establishes
Registered transactions on the property in the period searched at the sub-registrar's office.
Its limit
Shows only registered documents. An unregistered charge or a deposit of title deeds may not appear.
Revenue record (7/12 in Maharashtra, khata in Karnataka, patta in Tamil Nadu, jamabandi in north India)
What it establishes
Who is recorded for land revenue and, often, the land use and area.
Its limit
A revenue entry is a fiscal record. It supports title but does not by itself create it.
Approved building plan and occupancy certificate
What it establishes
That the structure was sanctioned and certified fit for occupation.
Its limit
Deviations from the plan are not covered and may be unauthorised.
RERA declaration
What it establishes
The promoter's sworn statement of title and encumbrances (RERA s.4(2)(l)).
Its limit
A declaration, not a verified title.
| Document | What it establishes | Its limit |
|---|---|---|
| Registered sale deed | Transfer of ownership. For tangible immoveable property of ₹100 or more, sale needs a registered instrument (TPA s.54). | Only as good as the seller's own title; read the chain behind it. |
| Chain of earlier deeds | How ownership reached the present owner. | A break (an unregistered link, a missing heir's consent) is a title defect. |
| Encumbrance certificate | Registered transactions on the property in the period searched at the sub-registrar's office. | Shows only registered documents. An unregistered charge or a deposit of title deeds may not appear. |
| Revenue record (7/12 in Maharashtra, khata in Karnataka, patta in Tamil Nadu, jamabandi in north India) | Who is recorded for land revenue and, often, the land use and area. | A revenue entry is a fiscal record. It supports title but does not by itself create it. |
| Approved building plan and occupancy certificate | That the structure was sanctioned and certified fit for occupation. | Deviations from the plan are not covered and may be unauthorised. |
| RERA declaration | The promoter's sworn statement of title and encumbrances (RERA s.4(2)(l)). | A declaration, not a verified title. |
The Registration Rules Behind the Search
- check_circleRegistration Act s.17(1): gifts of immoveable property, instruments creating or extinguishing any interest of ₹100 or more, and leases from year to year, for more than a year or at a yearly rent must be registered.
- check_circleSection 49: a document that had to be registered and was not cannot affect the property or be received as evidence of the transaction, except as evidence of a contract in a specific-performance suit or of a collateral transaction.
- check_circleTPA s.3, Explanation I: anyone acquiring the property is deemed to have notice of a registered instrument from the date of registration. A buyer or lender cannot plead ignorance of a registered mortgage.
- check_circleRegistration Act s.17(1A): an agreement to sell relied on for part performance under TPA s.53A has to be registered.
Valuer's Site and Document Checklist
For a typical bank valuation of a residential plot or flat.
- checkOwner's name in the deed, the revenue record and the tax receipt is the same person.
- checkSurvey number, plot or flat number and boundaries in the deed match what is on the ground.
- checkLand area and built-up area agree across the deed, the approved plan and your measurement; differences are quantified.
- checkLand use in the revenue record or development plan matches the actual use (agricultural land used as a residential plot is a red flag).
- checkOccupancy: owner, tenant, licensee or vacant. A protected tenant or a long licence changes the value.
- checkVisible rights of way, encroachments, high-tension lines or road-widening lines.
- checkEvery document you relied on is listed in the report with its date and number.
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State the Assumption, Do Not Bury It
Where you have not verified title, say so in the report: the value is given on the assumption that the title is clear and marketable and the property is free of encumbrances other than those noted. A value that silently assumes clear title is one the valuer may be asked to defend if it later turns out the seller never owned the land.
How the Valuation Examination Tests This
Questions here are usually set as short scenarios: a deed area that differs from the plan, an unregistered agreement, a mortgage by deposit of title deeds that does not show in the encumbrance certificate. The trap is treating a revenue mutation entry or a RERA declaration as proof of title. Both are evidence; neither is a title document.
FAQs
Does a registered valuer verify title to the property?expand_more
No. Title is verified by the lender's legal adviser. The valuer identifies the property, checks the documents seen against the site, reports discrepancies and states the title assumptions on which the value is given.
What does an encumbrance certificate show?expand_more
Registered transactions affecting the property for the period searched at the sub-registrar's office. It does not show unregistered transactions, so an equitable mortgage by deposit of title deeds may not appear on it.
Is mutation in the revenue record proof of ownership?expand_more
No. A mutation records who pays land revenue. It supports a title claim but is not itself a title document; ownership comes from the registered instrument or other lawful mode of transfer.
What happens if a document that had to be registered was not?expand_more
Under Registration Act s.49 it cannot affect the property or be used as evidence of the transaction, except as evidence of a contract in a specific-performance suit or of a collateral transaction.
Next steps
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