To begin with, property purchase isn’t something you can do without literally getting involved in the process; however, apart from all the research work there are a few things on the legal upfront that need to be taken care of.
This blog by Keys90 mentions these very important points on the legal checklist that need to be considered really well so you can make the wise decision. This is an important thing because unlike most countries in the Indian context, the process of identifying the right property is fraught with several risks, legal and regulatory hurdles.
Follow this checklist to get, set, and go to the new house.
Owner’s Title and Ownership Verification –
One of the key points that need to be followed as the first point in the checklist is verification of the seller followed by setting a verified title with him. Documents, for a period of 30 years, if not more (and where documents are not available, for a least period of 12 years) must be examined and the seller may be called upon to provide the following documents / information:
- Title documents of the property – government order for grant, succession certificate, sale deed, gift deed, will, partition deed, etc., evidencing the transfer of title over the years, culminating in the vesting of property with the seller.
- Nature of title – leasehold, freehold, or development right
- In case the seller is claiming development rights to the property, the development agreement and power of attorney, executed by the owners in favor of the seller.
- Khata registered in the name of the seller.
- Get any information on pending or past litigation
Identity Verification of the Seller –
Similar to the verification of the owner’s ownership and title of the property it is mandatory to take a look into all the other personal details of the seller, including the following:
- Identification of the residential status and nationality
- In case property is held jointly, call for the verification of all the owners
- Remember the construction documents of the property are mandatory, whether the seller is a company, trust, partnership or an individual.
- Make sure you verify the orders of the competent court that permits sale of property.
Construction Approvals –
Buyers should scrutinize the building plan and layout plan in case of purchase of an apartment or a land where a building has been already constructed. Permission should be sanctioned by the local municipal authorities, along with approvals issued by government, statutory and regulatory authorities for providing facilities like fire safety, water, electricity, environment clearance, etc.
Certificate of Occupancy –
It is the responsibility of the sellers to obtain the occupancy certificate from the concerned authority. This should be done prior to sale of property. The reason behind this is simple – use of property without obtaining the occupancy certificate could be the reason behind the buyers being exposed to penalty under the applicable building; besides there is always a risk of the demolition of property.
Understand the Details of Tax Payment –
It is the responsibility of the buyers to check with the municipal authorities if the seller has been a defaulter on the payment of taxes. Remember non-payment of property taxes could be a reason affecting its marketing.
Physical Surveillance –
The buyer may undertake a physical survey before actually deciding to buy the property. It is rather recommended in case of land in order to indentify and distinguish the boundaries to various other properties, further asserting another physical trait that may cause an effect to the property.
Compliance Under the RERA Act –
According to the newest addition in the legal checklist it is mandatory for the developers to register their projects with the authority constituted under the Act. Buyers are advised to verify whether property has been registered with the authority under RERA or not. Both the parties can check the official website of RERA for each state, as it provides the cases and complaints filed against the developer or the project.
Keep this checklist handy with you before you finally start the process of the purchase of property of any kind. This will be of utmost value when it comes to making the right legal decisions considering property.