An Explainer: Land Title
Land title is an official document that proves that a person owns a plot of land.
PropGuide Explains Land Title
If you have a clear title to the land that you own, it means that nobody has a claim of ownership to it, other than you. Legal land title is important to engage in transactions and also, when applying for a housing loan.
The process of obtaining land title can be complex. World Bank studies in cities like Ahmedabad have found that if the current occupier of a property and the real owner of the property compete for land title, the task might be difficult for both parties. At the same time, for low income households, occupying and staying on a plot of land, to which clear legal land titles do not exist, seem to be extremely viable in the short run.
Land title, however, is important to redevelop neighbourhoods. Many of the recent redevelopment projects of the Maharashtra government faced opposition because of the difficulty in clearing titles. The impact of ambiguity in land titles have a large impact on real estate markets in Indian cities. Especially, when such ambiguity exists in the case of valuable urban land.
Check out PropGuide's comprehensive guide to real estate terms here.
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