Buying a property is an expensive decision
Buying a homeis probably one of the biggest and most
expensive decisions you’ll ever make in your life. It's so exciting to finally
own your dream home that even the seemingly endless years of paying Equated
Monthly Installments, (EMIs)cannot dampen your joy. While buying a
property is cause for celebration, don't forget tobe extra careful and do
your due diligence while going over the legal property documents to save you
from heartache and legal problems in the future.
In additiontoscrutinizing all the documents yourself, it is advised that you get legal helpto makesure you have the all required documents in place including the ones listed below.
The title deed must be verified by a lawyer
Thetitledeed is a legal document that proves ownership of the property. As a buyer you need to ensure that the title deed of the property is in the seller’s nameand that he has the legal rightto sell it. Make sure that theseller gives you an original deed and as soon as you have access to it takeitto your propertylawyer for inspection.
An encumbrance certificate is issued by thesub-registrar’s office. Itstates that theconcerned property is free from all encumbrances like leases, easements, mortgages and monetary and legal liabilities. The encumbrance certificate is essential to check that the titleof the property you are planning to buy isclear.
Sanctioned Layout Plan
Your property should be built according to sanctioned plans
If you are buying a house or an apartment, you need to make sure that the builder has the proper sanctions from the appointed governingauthorities. A sanctioned layout plan includes the building plan, layout approval,list of basic amenities providedand a completion certificate. If the builder deviates from the plan, there may be a penalty payment imposed on the builder andthe governing authority can even demolish the house/building without notice.
Tax Receiptsand Bills
You need to make sure that the seller has paid all property taxes.You can make enquiresin thegovernment or municipal officeand check that the tax receipts are up to date. You can also find out if there are any notices and requisitions that still need to be cleared. Make sure that all outstanding bills for amenities, like electricity and water, have been paid and if there is an unpaid pending amount, have the seller clear all dues prior to purchasing the property.
No Objection Certificate
If youarebuying an apartment in a building that has a registered society,the society should be requested to give you a no objection certificate. This document states that they have no issues or objections regarding the transfer of the apartment to your name.
All documents should be checked by a property lawyer
Registration of a property involves stamping and paying all the registration charges for a sale deed. The saledeed then needsto be recorded in the sub registrar’s office. Once this is done, you are the lawful owner of the property and are fully responsible for it.
Verifyingpropertydocumentscan be atime consuming process but itis an extremely important one. Make sure you are hands on and involvedthroughout, do your ownresearch, and don’t compromiseon hiring the best lawyer and other property experts to guide you through the entire process.