Issues Arising from Using Pre-Existing Document Templates for Property Transactions

Why Customized Property Documents Are Essential for Error-Free Transactions

Dhaarani Sekar
6 Min Read

Introduction
In property transactions, accuracy in documentation is crucial. However, relying on pre-existing templates without customization can lead to significant problems. This article explores the issues associated with using pre-existing templates for property documentation and emphasizes the importance of personalized, careful preparation of legal documents.

  1. Problems with Using Pre-Existing Templates: Often, individuals invest
    substantial sums to acquire properties, but when drafting legal documents, they rely
    on pre-existing templates. These templates are usually formats based on previously
    typed documents for other individuals. Using such templates can lead to significant
    errors if not adapted to the specific details of the current transaction.
  2. The Importance of Customization: Using a standard template without
    modification is a flawed approach. It is advisable, even if it incurs a slightly higher
    cost, to engage a skilled lawyer or document writer who can create a customized
    document specifically for your transaction. This process should be started several
    days in advance to ensure ample time for accurate preparation.
  3. Avoiding Rush and Panic: Buyers often become anxious about timing, believing
    in auspicious moments or deadlines imposed by relatives, real estate agents, or sellers.
    This urgency can lead to hasty decisions. Instead, it is better to proceed calmly,
    reviewing the draft carefully and making necessary corrections before finalizing the
    document.
  4. Consequences of Hasty Drafting: Many errors occur when documents are drafted
    in a rush due to pressure or time constraints. This often results in mistakes that could
    have been avoided with proper planning and review. Document writers who simply
    use existing templates without proper customization are prone to making errors.
  5. Example of Inaccuracy: For instance, if a father’s ancestral property needs to be
    divided among his wife, four daughters, and one son, using a template that does not
    accurately reflect the legal distribution can lead to significant issues. Each heir should
    receive their rightful share, but if a document is not correctly tailored, it might
    incorrectly allocate the shares.
  6. Mistakes in Document Preparation: Consider a scenario where a settlement deed
    was prepared using a template, but the actual division of property did not reflect the
    correct shares or boundaries. This error becomes apparent only months later, often
    when attempting to update the land records, causing delays and additional
    complications.
  7. Errors in Property Boundaries: Another example involves a property with a
    three-foot-wide access path from a main road. If the document only shows properties
    along the path but omits the path itself, it leads to discrepancies. When submitting the document for property registration or building permits, the mismatch with the actual
    layout can result in rejections and the need for corrections.
  8. Copy-Paste Issues: In some cases, documents are prepared by copying and pasting
    clauses from templates without verification. This can include incorrect terms such as
    “all original and duplicate documents” when only copies are being transferred. Such
    inaccuracies can lead to complications, especially when applying for bank loans or
    other legal requirements.
  9. Dealing with Errors: Incorrect documents might be rejected, requiring the parties
    to revisit and correct them. This process involves additional time and expenses,
    leading to frustration. The correct approach is to ensure that all documents are
    thoroughly reviewed and customized to avoid such issues.
  10. Example of Incorrect Boundaries: An example involves a property on a main
    road with a three-foot path and neighboring properties. If the document incorrectly
    represents the boundaries or omits essential details, it can lead to significant issues
    with registration and approvals, requiring extensive revisions.
  11. Legal and Administrative Challenges: Using incorrect templates or poorly
    prepared documents can result in significant legal and administrative challenges,
    including the need to re-prepare documents, additional costs, and delays.
  12. Real-Life Issues with Templates: There have been cases where documents were
    prepared by merely copying templates, leading to issues such as misrepresented
    property details. This highlights the need for personalized document preparation.
  13. Bank Loan Issues: Errors in documents can also impact financial transactions.
    For example, a bank might reject a loan application if the documents do not match the
    required standards, causing further delays and requiring corrective actions.
  14. Final Recommendations: It is always better to invest in professional legal
    services and document preparation rather than relying on generic templates.
    Personalized documents, reviewed multiple times, will ensure a smoother and more
    accurate property transaction, avoiding potential legal and administrative issues.

Conclusion
Accurate property documentation is essential for successful transactions. Relying on
pre-existing templates without proper customization can lead to errors and
complications. Engaging professional services and ensuring thorough preparation and
review of documents will help in avoiding these issues and ensure a smooth property
transfer process

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