27/12/2022
< PROPERTY SEARCH >
What Is Search Report of Property?
Why is a search report of property critical?
Table of Contents;
Why is a search report of property critical?
Procedure for getting search report of property?
Can a search report be made without an advocate?
Documents required for Search report of property?
Conclusion?
A search report examines a property’s history, including who was the initial owner and how the property changed hands over time before reaching the current seller. A search report is essential in the home loan application process.
The property search report mentions details of any charges or encumbrances placed on the property, as well as their current status. This report notes whether the property is resolved and the property has been released or whether any charges remain unresolved.
1. WHY IS A SEARCH REPORT OF PROPERTY CRITICAL?
It helps the bank to be sure of the property’s title. An encumbered property or the subject of a legal dispute is typically not financed by banks since it decreases the security and raises the risk exposure. It helps to identify that
the property’s title is clear and marketable.
The report serves as a guarantee for the acquisition of a home. The report assures the buyer that the title to the property he wants to buy is clear. He will not have any issues later due to pre-existing charges, encumbrances, or a legal battle over the property. A search report provides a buyer peace of mind that he is dealing with a trustworthy source.
2. PROCEDURE FOR GETTING SEARCH REPORT OF PROPERTY
An advocate generally writes a search report, who then provides a title certificate after visiting the registrar’s office and reviewing the property papers.
3. CAN A SEARCH REPORT BE MADE WITHOUT AN ADVOCATE?
Yes, by visiting the registrar’s office, one can self-survey the property’s title.
4. DOCUMENTS REQUIRED FOR SEARCH REPORT OF PROPERTY
to check the ownership of a property, a buyer should do the following:
4.1 COLLECTING INFORMATION ABOUT THE PROPERTY:
All relevant information related to the property should be collected. Specifically the plot (dag) number, khatian number, present possessor, holding address is essential. Without this information, it might not be possible to check the records of the property in question.
4.2 ESTABLISHING CHAIN OF HISTORY OF THE PROPERTY:
Next, the buyer should try to find the history of the property. A primary idea should be obtained from the present owner and local people. This history should be check against the relevant documents of the property.
4.3 AUTHENTICITY OF THE TITLE DEED(S):
The first and most important thing, while checking property documents, is to check the genuineness of the title deed. This can be done by conducting a search in the relevant Sub Registry Office. All registered deed has a record of the original deed in the Sub Registry Office in which it is registered. It is also possible to obtain a certified copy of the deed by paying a small government fees to the Sub Registrar. In case of ownership by inheritance, deed of the predecessor and Partition Deed (Bonton nama) (if any) should be checked.
It is also advisable to search the records of previous year (for at least 10 years) in the Sub Registry Office. If the ownership of the property is transferred or mortgaged, if will be found in the search.
4.4 CHECK THE KHATIAN/PORCHA:
Khatian/Porcha are available in the local Land (Tohosil) office, DC Office. Certified copies of all relevant Khatian/Porch should be obtained and checked. The name of the owner should be checked against the history provided in the deeds. If there is any mismatch, there should be proper explanation.
4.5 CHECK THE MUTATION KHATIAN:
If the name of the present owner is not appeared in the latest Khatian/Porcha, it is mandatory to mutate his/her name in the place of old owner in the Khatian/Porcha. There should be three documents in mutation – i) Mutation proposal letter (Namjari Jomavag prostabpotro); ii) Duplicate Carbon Rashid (DCR); and iii) Mutation Khatian. Without Mutation, any person cannot transfer ownership of a property to another person.
4.6 IF THE PROPERTY IS LEASED FROM GOVERNMENT
Lots of the property in Bangladesh (specially residential property in the cities) are leased from the government. The tenor of these leases varies. In most of the cases, government leased these properties through its agencies such as Department of Public Works, RAJUK, CDA etc. In almost all cases, permissions of the government agencies are required for any kind of activities in those leased land. An interested buyer should physically check the records of the relevant property in the relevant government offices.
4.7 TAX RECORD
The land tax (Khajna) record should be checked. If land tax of a property is not paid, the government might take the property.
4.8 BUILDING PLAN AND APPROVAL
If there is any building on the land or in case of a flat or apartment, the buyer should verify the building plan, approval letter to make sure that the building is constructed according to the plan.
4.9 PHYSICAL VERIFICATION OF THE PROPERTY:
The interested buyer should visit the property in person and try to find out if there is any problem with the ownership or possession of the property.
Upon conducting the above verification, the chance of running into trouble with the property becomes lower.
5. CONCLUSION
The title of a property determines its worth. A property with a defective title is worthless; only a clear title can guarantee that you have the legal right to possess and sell the property.
The Search Report also aids banks in determining if the immovable property has any prior encumbrances and in what capacity the individual holds the immovable property. Banks may accept or deny the loan after reviewing the Legal Scrutiny Report submitted by the Advocate and considering other relevant considerations.
If you need professional help with property related issues, please contact us.
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