1. Due Diligence Beyond the Title Deed
- Don't rely solely on the title document. Investigate:
- Chain of ownership
- Family consent (especially for inherited or family land)
- Prior disputes or cautions registered on the land
2. Verify Authenticity of Documents
- Confirm signatures on transfer forms and consent letters are genuine.
- Cross-check land control board approvals, ID copies, and spousal consents.
3. Extra Caution for Family or Inherited Land
- Ask for succession documents and written agreement from all beneficiaries.
- Require proof of ownership under probate or letters of administration.
4. Independent Legal Verification
- Engage external counsel to review transaction legality—not just registration.
- Request statutory declarations from the seller about the property's status.
5. Register Cautions & Charges Early
- Secure interest by registering a caution immediately after initial agreement.
- Lodge a charge only after all ownership checks are confirmed.
6. High-Risk Red Flags
- Recently issued titles after succession
- Title transfers within family with no consideration
- Speedy changes in ownership history
7. Legal Clauses in Loan Agreements
- Include warranties from borrowers affirming clear, lawful title.
- Insert indemnity clauses covering title fraud and misrepresentation.
Conclusion/Practical Takeaway
Fraud nullifies title—even if you’re a bona fide lender. The onus is on banks to ensure the title is not just registered, but legitimately acquired.
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