A property title search is really important as a property’s value is estimated through its title. It should be free from any encumbrance; a defective titled property holds no value. Before investing your money in real estate always scrutinize that the title of the property is clear. A marketable title can be acquired when the transferor has a good title to it. In this article, we will have an overview of property and Register of Company (ROC) search reports.
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Introduction
The term ‘search’ may be defined as a process to review or inspect either manually or electronically, agency records for locating records that are responsive to a request. Report means either spoken or written account of something that one has been observed, done, heard, or investigated. We may define ‘search report’ as a process of inspecting records and providing evidence of the same.
Search Report
It has become an integral part of documents by banks while sanctioning loans, it may be related to any property title or any encumbrances created on it. Nowadays financial institutions including banks have become more cautious when they give loans against properties to persons or companies to avoid future consequences.
Property Search Report
The ‘property search report’ means to find out the history of the land or property about was the original owner and to whom the property has passed and who is the present owner. The property search record is inspected over 30 years.
While preparing a property search report it is essential to focus on-
- Ownership details
- Title verification
- Title derivation
- Transferor’s rights and legal competency
- Encumbrances
Procedure of property search
A property lawyer will search public records to check the ownership of the property before you close a deal of purchasing a property. Once the search is finished the advocate will provide you with a preliminary title report and it shall assure you the authenticity of the said property.
In India, there are companies and real estate brokers that work as property managers. They perform several roles for the owner such as creating a budget for them, advertising their rental properties, helping them in finding tenants, and supporting in rent collection. They also perform a compliance role with the local landlord and real estate board laws and support the maintenance of the property.
- The lawyer prepares the report by visiting the Registrar’s Office; he/ she inspects the documents and issues a title search certificate;
- The certificate mentions that the property is encumbered or not;
- The certificate also contains the details of whether the property is marketable or not;
- It also clarified if any court proceedings are going on or pending on that particular property;
- The builder should annex the Title Certificate along with “Agreement to Sale” at the time of purchase;
- The certificate also helps the banks to provide loans with confidence against the property.
ROC Search Report
The search report is prepared by the CA/CS or Advocate after inspection of the document and records as per ROC records. The report is searched by the banks as well while granting loans to the individuals or the companies. The reports are helpful for the financial institutions to determine the encumbrances (if any) on the property that is kept as security to them.
The search report contains the following details of a company-
- Name of the company
- Date of incorporation
- CIN of the company
- The capital structure of the company
- Registered office
- Details of the company directors
- Details of shareholders
What is the purpose of the report?
It is important for stakeholders or financial institutions to an inspection of a Company’s records. The report of a company is helpful for stakeholders to decide on investment, loan advances, management, and entering into a contract with the Company.
Final words
The property and ROC search reports are helpful for financial institutions to ensure that the company is not a defaulted one and there are no encumbrances or charges against the companies. The reports may also be helpful for the persons who are willing to get associated with a company. The individuals may conduct their due diligence of the company may get the ROC search done.
A property title search is really important as a property’s value is estimated through its title. It should be free from any encumbrance; a defective titled property holds no value. Before investing your money in real estate always scrutinize that the title of the property is clear. A marketable title can be acquired when the transferor has a good title to it. In this article, we will have an overview of property and Registrar of Company (ROC) search reports.
