With the rapid urbanization in the past decade, the property has become one of the most sought-after assets in the country. A property can be acquired through inheritance or purchase. Inherited property forms the basis of the most of the property disputes in the country. And the reason behind it is very simple, that the property is the most valuable asset one can have. But when the two are combined, it can spell doom for the buyer, if not carried out with due preventive measures at the place. In simpler words, when a person decides to sell his inherited property, the buyer must undertake the necessary checks to gain the clear title of the property on the purchase. If you are buyer about to purchase an inherited property, check out the following point before making the purchase.
Inheritance Details – The buyer must have a complete information of the inheritance process, i.e how the seller inherited the property. It will ensure that the seller followed the due procedure to get the property transferred on his name. The legally valid way to acquire the title of the inherited property is through probate or succession certificate. If the transfer was done by either of these, the seller does not have the clear title of the property.
Remaining Legal Heirs as the Witness – The buyer has all the right to demand that all the legal heirs of the deceased sign the sale deed as the witness to evade any future dispute over the title. Although on an operational level, it would be no less than a nightmare but it will guarantee the transfer of clear title on the purchase.
Token Money – The buyer should pay the minimum token money, to not have to bear high losses in cases the title of the property turns out to be disputed. It is often seen that the seller will try to sell a disputed property at a high token money and is in a hurry to finalise the sale. It should make the buyer cautious of the transaction.
Indemnify yourself – The buyer can and should add a clause in the sale agreement stating that the seller indemnifies the buyer of any third party dispute that may arise over the property. It will safeguard the financial interests of the buyer, who stands to lose way too much in case of a dispute over the inherited property.
Other Disputes – Dispute can arise over any aspect of the inherited property and not just the title. There are chances that the there is a dispute over the area of the property that is already in the court. Or that the property, in reality, is under mortgage with any bank or financial institution. Thus, it is imperative for the buyer to have a proper title search done on the property to make sure that there is no litigation over the property.
Buying a property is a big decision that should not be taken in a hurry. The buyer should undertake all the necessary steps to make the transfer as safe as possible. Further, it is advisable to hire the services of an expert property lawyer. Although there is no way to eliminate risk completely but their expert advise can help you purchase a property that has a low-risk attached to the inherited property