Title Certificate Issuance By Advocates And Solicitors

Advocates and solicitors often issue title certificates. This may be a requirement under law as it is for Maharashtra Ownership of Flats Act,1963 (MOFA) and the Real Estate Regulation and Development Act,2016 (RERA) or under contract as it is for the transaction of loans, mortgages, etc. The title certificate is issued to assist one's client and to protect members of the public and unwary flat purchasers from transacting with the persons who have no title to the land they are developing or dealing with. In case if the advocate finds the title to be doubtful the advocate has to clearly state this in the title certificate. Also, the title certificate can be revoked by the advocate who has issued it in case the advocate finds the errors or will mislead or defraud. The members of the legal profession can assist their clients lawfully and within the limits of the law.

The court held that the title certificate needs to disclose at least the following:

Nature of the title of the promoter;
Nature of the title of the vendor or the promoter or the person through whom the promoter claims;
Encumbrances and claims on the land;
Steps required to be taken by the promoter for completing the title as absolutely clear and marketable while conveying the property or causing the same to be conveyed to the organization of flat purchasers on the due date;
Whether the agreement to sell the flat will bind the owner of the land;
Whether the title of the promoter or his vendor or the person through whom the vendor claims is doubtful in any manner? If so the nature of doubt entertained.
Whether the authorization granted in favor of the promoter by the owner or the vendor is irrevocable to bind the owner with the agreements for the sale of the flats? Whether the agreement to purchase the land by the promoter is revocable or irrevocable?
The court then set out the process that is to be followed before the issuance of the title certificate. This process has become a standard process to be followed by the advocate and the threshold for determining whether the advocate has taken minimum and proper care is taken while discharging duties. A similar process is adopted when the advocate is undertaking due diligence on behalf of the prospective purchaser.

The process to obtain the title certificate is as follows

Peruse the title deeds;
Have searches taken in the office of the Sub-registrar (Also of the Registrar of Companies in the Vendor is a Limited Company);
Issuance of Public notices at least in two newspapers one vernacular one English inviting the claims of the members of the public against or in respect of the property in question;
Ask the purchaser to require his architect to ascertain whether the land is under set back or reservation;
Administer requisitions on the title and be satisfied with the answers;
Obtain declaration on oath from the relevant person regarding the factual position before the issuance of the title certificate

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Frequently Asked Questions

Common questions about Title Certificate Issuance by Advocates & Solicitors.

A title certificate is a document issued by an advocate or solicitor that certifies the ownership rights and claims over a particular piece of land or property. It is intended to protect clients and potential buyers from transacting with individuals or entities that do not have a clear and legitimate title to the property.

A title certificate may be required under certain laws, such as the Maharashtra Ownership of Flats Act, 1963 (MOFA) and the Real Estate Regulation and Development Act, 2016 (RERA), or as part of certain transactions, such as loans, mortgages, or property purchases.

According to the court, a title certificate should disclose the nature of the title held by the promoter, vendor, or person through whom the promoter claims ownership, any encumbrances or claims on the land, steps required to complete a clear and marketable title, whether the agreement to sell the property is binding, and any doubts or uncertainties regarding the title.

Yes, an advocate who has issued a title certificate can revoke it if they find errors or believe the certificate might mislead or defraud someone.

The process for issuing a title certificate typically involves reviewing the title deeds, conducting searches at the Sub-registrar's office (and Registrar of Companies if the vendor is a company), issuing public notices, requiring an architect to check for setbacks or reservations, administering requisitions on the title, and obtaining declarations on oath regarding the factual position.

Advocates must exercise due care when issuing title certificates to ensure they are not misleading clients or members of the public, and to uphold their professional obligations and ethical standards.

Yes, if an advocate finds the title to be doubtful, they must clearly state this in the title certificate.

Public notices are issued in newspapers (at least one vernacular and one English) to invite claims from members of the public against or in respect of the property in question, as part of the due diligence process.

Obtaining declarations on oath from relevant parties regarding the factual position of the property is an important step in the title certificate process, as it helps ensure the accuracy and completeness of the information provided.

A prospective purchaser can engage an advocate to conduct due diligence and issue a title certificate on their behalf, following the standard process of reviewing title deeds, conducting searches, issuing public notices, and obtaining necessary declarations and confirmations.