SARITHA DEVELOPERS

When purchasing a property, it is crucial to verify the identity of the seller to ensure the legitimacy of the transaction and protect your interests as a buyer. Whether the seller is an individual or an entity such as a company, trust, partnership firm, or society, confirming their identity and authority to sell the property is essential. In this article, we will focus on the key points to consider when verifying the identity of the seller as part of your due diligence process.

1. Identification of All Owners: If the property is jointly owned, it is important to identify and verify the identity of all the owners. Each co-owner should be involved in the transaction and provide their consent for the sale. Ensure that all necessary legal documents, such as consent letters or joint sale agreements, are in place to confirm the participation and agreement of all owners.
2. Seller as an Entity (Company, Trust, Partnership Firm, Society, etc.): When the seller is an entity, it is crucial to examine the constitution documents of the entity. These documents establish the entity’s ability to own and transfer the property. Review the articles of association, trust deed, partnership deed, society bylaws, or other relevant documents to confirm the seller’s authority to sell the property. Additionally, ensure that the person executing and registering the sale deed on behalf of the entity is duly authorised to do so.
3. Court Orders and Guardian Appointment: In cases where the property is held by a minor or a person of unsound mind, specific court orders may be required to permit the sale and appoint a guardian. Verify the existence of any court orders authorising the sale of the property and appointing a guardian to represent the interests of the minor or person of unsound mind. This step ensures that the transaction is legally valid and protects the rights of all parties involved.

Verifying the identity of the seller is a crucial step in the due diligence process when purchasing a property. Whether the seller is an individual or an entity, it is important to confirm their residence status, nationality, and authorization to sell the property. Identify all co-owners, review constitution documents for entities, and ensure compliance with any court orders if the property is held by a minor or a person of unsound mind.

Engaging the services of a legal professional or real estate expert can provide invaluable assistance in verifying the identity of the seller and ensuring a legitimate and secure transaction. By conducting thorough due diligence, you can protect your investment and proceed with confidence in your property purchase.