Detecting forged and fabricated title deeds is essential for both lenders and borrowers involved in a home loan transaction to ensure the property’s legal ownership and clear title. A forged title deed is a fraudulent document created to misrepresent the ownership of a property, while a fabricated title deed is one that is completely fabricated and has no legal basis. Here’s a detailed explanation of detecting forged and fabricated title deeds:
1. Verification of Documents:
- Lenders and borrowers should thoroughly verify all property-related documents, including the sale deed, property tax receipts, encumbrance certificate, and possession letter.
2. Cross-Check with Official Records:
- Compare the information on the property documents with the details available in official records, such as the land registry or revenue department records.
- Verify the property’s ownership history and any past transactions to identify discrepancies or inconsistencies.
3. Conduct Physical Inspection:
- Physically inspect the property to ensure it matches the description provided in the documents.
- Check for any visible signs of tampering or alterations on the title deed and other property-related documents.
4. Verify Seller’s Identity:
- Verify the identity of the property seller through valid identification documents, such as Aadhaar card, passport, or voter ID.
- Obtain a copy of the seller’s PAN card and address proof.
5. Engage Legal Experts:
- Seek assistance from legal experts or property lawyers to conduct a due diligence check on the property’s title.
- Legal experts can verify the authenticity of the title deeds and advise on potential risks.
6. Check Encumbrance Certificate:
- Obtain an encumbrance certificate from the registration office to check if there are any existing liens, mortgages, or legal claims on the property.
7. Request for Past Sale Deeds:
- Request the seller to provide copies of past sale deeds and chain of ownership documents to trace the property’s history.
8. Verify Signature and Seal:
- Examine the signatures on the title deed and other documents for any irregularities or discrepancies.
- Ensure that the stamp and seal on the documents are genuine and not forged.
9. Online Verification:
- Utilize online platforms and government portals to verify property-related details and cross-check information with official records.
10. Conduct Background Check:
- Conduct a background check on the seller and any intermediaries involved in the property transaction.
11. Obtain No Objection Certificates (NOCs):
- Obtain NOCs from relevant authorities, such as the local municipal corporation, for any construction or alterations made on the property.
12. Beware of Unusually Low Prices:
- Exercise caution when dealing with properties offered at unusually low prices, as it could be a red flag for a potential scam or forged documents.
13. Document Validation by the Lender:
- Lenders typically conduct their own due diligence on the property’s title and documents before approving a home loan.
14. Title Insurance:
- Consider obtaining title insurance, if available, to protect against financial losses due to title defects or disputes.
Detecting forged and fabricated title deeds requires vigilance, thorough verification, and professional assistance. Both lenders and borrowers should exercise caution and conduct extensive due diligence to ensure that the property’s title is clear and legally valid before proceeding with a home loan transaction.