Is There A Gap In The Chain Of Title? Here's What To Do

In more than three decades of working in real estate, I’ve seen one mistake haunt buyers more than any other: overlooking a gap in the chain of title. At first glance, a property may appear attractive—priced well, located well, with no obvious issues. But when documentation is incomplete, particularly after multiple resales, the risks multiply. Buying without clarity can turn what looks like an asset into a liability.

A gap in ownership records means one or more sale deeds or transfers are missing. That alone raises a critical question—who is the real owner? If a prior owner, heir, or even a creditor appears years later with a valid claim, your purchase could be challenged. Missing records also open the door to disputes about inheritance rights or unpaid debts tied to the property.

Then there are hidden encumbrances: mortgages, pledges, or pending litigation that may not surface unless you dig deep. In cooperative housing societies, the risks increase, since incomplete or outdated records make it difficult to confirm whether the seller was ever a legitimate member. Banks are wary of such gaps as well. They often refuse loans for properties without a clean title, and even if you manage to buy, a future resale may be nearly impossible.

Protection

So, what should a cautious buyer do? The only real protection lies in thorough due diligence. That begins with verifying title. Every buyer should insist on certified copies of past sale deeds from the sub-registrar’s office and commission a lawyer’s title search covering at least 30 years of ownership history. Mutation records from municipal or revenue authorities must confirm each change in name. Property cards or extracts, such as the 7/12 record in Maharashtra, provide further assurance of rightful ownership.

Checklist

Next comes encumbrance and liability checks. An Encumbrance Certificate covering the past three decades is a must. A CERSAI search helps identify mortgages or charges on the property. If the property was ever mortgaged, obtain a no-objection certificate from the concerned bank. Buyers should also confirm that no litigation is pending in the courts and that housing society dues, if applicable, are fully cleared.

Tax and compliance checks are equally important. Ask for property tax receipts for at least the past ten years. Verify sanctioned building plans and, in the case of redeveloped projects, ensure completion or occupancy certificates are in place. Where documents are missing, safeguards must be created. File a police report for lost papers, publish a notice in two newspapers (one local and one English) inviting objections within 15 days, and record a notarized statement if no objections arise. The seller should also sign an indemnity bond holding themselves responsible for any future claims on the title.

Verification

If the property lies within a housing society, verify that membership transfer is properly recorded. Obtain a “No Dues” certificate from the society and, if required, a formal resolution approving the transfer. In some jurisdictions, no-objection certificates from the local municipal body or panchayat may also be mandatory.

Finally, the sale deed itself must be watertight. A lawyer should issue a title certificate confirming clear and marketable ownership. The sale deed must include specific protections: a promise of full and peaceful possession, confirmation that the title is free of encumbrances, and a clause assigning liability for any disputes that may arise later to the seller. At the time of handover, a possession memo signed by both parties formalizes the transfer.

Professionals

None of this is work you should attempt alone. A trustworthy local broker can help gather records, but the role of a competent lawyer is indispensable. Only a professional can conduct a detailed title and encumbrance search and draft a sale deed that offers genuine protection.

The bottom line is simple: nothing is worth the risk of buying a property whose ownership history is incomplete. If legal, municipal, and society checks fail to clear the chain of title, the best decision is often to walk away. In real estate, confidence comes not from what you’re promised but from what you can prove. And a safe buy, in the end, is always the wisest buy.

The writer is President, NAR India