Precautions to take when buying a property
Navigating the complex terrain of real estate transactions demands a keen understanding of both legal intricacies and market dynamics. Whether you’re a first-time homebuyer, an experienced investor, or a developer, ensuring that your real estate dealings are legally sound and strategically advantageous is paramount. From verifying property titles to scrutinizing seller credentials and compliance with zoning regulations, each step in the process carries significant legal and financial implications. At ASA & Partners, we provide comprehensive legal counsel and support, guiding you through every phase of your real estate journey to ensure a seamless and secure transaction.
When buying a property, taking precautions is crucial to safeguard your investment. Begin by thoroughly examining the property’s title deeds and ensuring they are clear of any encumbrances or legal disputes. Verify the seller’s identity and financial standing to prevent potential fraud or undisclosed liabilities. Additionally, conduct a comprehensive inspection of the property to assess its structural integrity and compliance with local building codes. Finally, ensure all necessary regulatory approvals and documentation, such as occupancy certificates and tax clearances, are in place before finalizing the purchase. These precautions not only mitigate risks but also provide assurance that your investment in real estate is secure and legally compliant.
1. Title Check
Step-1 Verify Title Documents: Check sale deeds, gift deeds, wills, etc., proving title transfer.
Step-2 Nature of Title: Determine if it’s leasehold or freehold.
Step-3 Development Rights: If applicable, verify the development agreement and power of attorney.
Step-4 Registration: Ensure all documents are stamped and registered with the concerned sub-registrar.
Step-5 Khata Registration: Confirm it’s in the seller’s name.
Step-6 Litigation: Check for pending or past litigation.
Step-7 Original Documents: Ensure the seller has the original title documents.
Step-8 Sale Deed: Register it with the concerned sub-registrar.
Step-9 Ownership Proof: Examine the sale deed carefully.
Step-10 Clear Title: Ensure the property has a clear title.
Step-11 Statutory Payments: Verify all bills and taxes are settled before executing the sale deed.
2. Verification of Seller’s Identity
Step-1 Seller’s Status:Confirm residence status, nationality, and required consents.
Step-2 Joint Ownership: Identify all owners.
Step-3 Entity Ownership: Verify documents if the seller is a company, trust, etc.
Step-3 Registration: Ensure all documents are stamped and registered with the concerned sub-registrar.
Step-4 Court Orders:For minors or those of unsound mind, ensure court permission.
3. Conversion and Land-Use Permissions
Step-1 Land Use:Check if the property is approved for non-agricultural use.
Step-2 Zoning Plan: Ensure compliance with the Master Plan.
4. Construction Approvals
Step-1 Building Plans:Verify the building/layout plan is sanctioned.
Step-2 NOCs: Obtain NOCs from relevant departments.
5. Occupancy Certificate
Step-1 Occupancy:Ensure the seller has obtained the occupancy certificate
6. Tax Payment Status
Step-1 Property Taxes:Confirm no default on tax payments.
Step-2 Utility Bills:Verify all utility bills are paid
7. Encumbrance
Step-1 Encumbrance Check:Search for any registered encumbrance on the property.
8. Physical Survey
Step-1 Survey:Conduct a physical survey to confirm property boundaries.
9. Compliance Under RERA
Step-1 RERA Registration:Verify the property is registered with RERA
Step-2 Developer’s Record:Check for any complaints against the developer.
Step-3 Broker Registration:Ensure the broker is RERA-registered
10. Loan Outstanding
Step-1 Loan Clearance:Request the seller to clear any outstanding loans
Step-2 Loan Transfer:If applicable, transfer the seller’s loan to your name.
Step-3 No Dues Certificate:Obtain it before purchase.
11. Construction Quality
Step-1 InspectionCheck walls, window frames, flooring, etc
Step-2 Developer’s Record:Research the developer’s construction quality
Step-3 Super Built-up Area:Understand the actual usable area versus the total area.
12. Rental and Resale Value
Step-1 Future Value: Assess rental and resale potential.
Step-2 Locality Research:Evaluate accessibility to infrastructure and connectivity.