Title deeds, also known as sale deeds, are legal documents used in real estate transactions that serve as an ownership statement for property. This deed is important because it facilitates the seamless transfer of property possession by confirming and recording ownership. The title deeds contain important information about the property, such as the purchaser’s and seller’s names, the cost of the transaction, a summary of the property/ land, and any legal claims or limits on it. Property advisory services often include assistance with understanding and managing title deeds.

According to India’s Registration Act of 1908, the sale deed must be registered before it may legally transfer ownership, at which time it becomes the title deed. When purchasing land, particularly to construct a new house, the seller must provide original ownership records to prove clear title, especially for agricultural or ancestral property. The title deed is also required for bank loans since it serves as proof of ownership and allows the bank to use it as collateral to recover debts if necessary. Property advisory can be invaluable in navigating these requirements. The following are a few types of title deeds that are required for different legal and financial purposes:

Warranty Deeds:

Warranty deeds are vital for businesses to shield themselves from liability. These documents must be meticulously drafted, reviewed, and signed by legal teams. They serve several purposes including transferring property rights to the buyer, providing the buyer with warranties against defects in materials or services, and protecting the rights of parties in stringent contractual agreements. In a warranty deed, the property seller transfers ownership of the real estate to the buyer. In exchange, the buyer undertakes to carry out or refrain from specific activities outlined in the agreement. A warranty deed conveys the buyer’s interest in the property’s title based on the seller’s claims about the property’s condition and the lack of concealed encumbrances. According to this agreement, the buyer may be required to retain and hold the property until certain criteria are fulfilled.

Quitclaims:

Quitclaim deeds are crucial legal documents where an owner gives away their property rights. This document typically includes a property description, the landlord’s name and address, and other pertinent information, updated regularly. Historically, quitclaim deeds were used by individuals seeking a fresh start. Today, they are common in divorce settlements and other property rights matters. These deeds can be created digitally as PDFs or scanned documents, which can then be printed.

Gifts:

A land title deed can also signify a gift, transferring land ownership to the recipient. The deed authorises the new owner to occupy, use, or sell the land. Title deeds are often gifted during significant celebrations such as birthdays, graduations, weddings, and anniversaries, allowing the recipient to hold the land as part of their property portfolio.

Pledges:

A pledge involves transferring property ownership through a title deed. The specific type of deed may vary based on language and context. The most common form is a trust deed, which differs from a mortgage since it does not involve borrowing money.

Chattel Mortgages:

Chattel Mortgages are a type of home loan for people who can’t qualify for a regular mortgage because of a low credit score or insufficient income. However, they can still make monthly payments like with other installment loans. Originally used for cars and other personal property. Now, they are more commonly used for home loans. These loans help get a mortgage or refinance an existing one. Recently, more people have been using chattel mortgages instead of traditional ones to buy homes. They are designed for people who don’t meet the usual income requirements but still want to purchase a house.

Title deeds are critical for specifying property ownership and protecting legal rights in real estate transactions. They have major legal implications and are required for both commercial and residential premises. To obtain a title deed, several documents are typically required, including proof of identity, proof of ownership, property documents, legal clearance, financial documents (if applicable), transfer documents (if applicable), and any other relevant documents specified by local governments or legal guidelines.

The Guardians, a leading real estate consultant and property advisory firm in India advises investors that whenever engaging in property transactions such as buying, selling, or transferring, verifying the correctness and legitimacy of title deeds is indispensable for safeguarding property rights and ensuring seamless, legally compliant dealings. Visit The Guardians’ website or schedule a consultation with one of our experts in property advisory services.