Investments of property are extremely capital intensive, and any errors made during the transaction will cause the buyer a great deal of trouble. If you are looking to buying a property, be prepared to do all the crucial paperwork because the procedure includes presenting, submitting documentation, and checking multiple records necessary to complete the property registration.
This makes it essential that a buyer exercise due diligence when reviewing the details of the house. Not being cautious enough can lead to penalties later on. SBP Group cares for you & that is why we will help you in understanding the procedure & making a legal checklist for buying a property.
Authentication of The Seller’s Title and Ownership: In order to determine the validity of the title with the seller, the quality of the title and its marketability, and the ability of the seller to communicate a simple and marketable title free of pressure, the buyer should perform background checks. The seller may also be requested to provide the following documentation/information:
- Property Documents: Government grant order, transfer certificate, sale deed, gift deed, etc., showing the transfer of ownership over the years, ending in the seller’s vesting of goods.
- Title Nature: the right of leasehold, freehold, or development.
- In the case of the dealer claiming the property’s development rights, the development contract, and power of attorney are exercised by the owners in favor of the seller.
- Every title document shall be properly stamped and registered at the Office with the Sub-Registrar of assurances
- Account registered in the name of the seller.
- Pending or past litigation details.
- Availability of original documents with the seller.
Permissions For Conversion And Land-Use: The acquisition of non-agricultural land assumes vital importance with growing urbanization and convergence of lands with urban conglomerates, as some state laws prohibit the acquisition by non-agriculturists of agricultural property. Second, the buyer must review the Master Plan to ensure that the estate, such as residential, commercial, retail, public/semi-public, parks and open spaces, etc., is created in compliance with the zoning plan.
Verify the seller’s identity: The buyer should also determine the identity of the seller and any clear provisions governing the right of the seller to move the property.
- State of residency and nationality of the dealer, in the case of a person, and if the sale requires the approval of government authorities.
- Identification of all the members, in the case of collectively owned properties.
- Where a company, trust, partnership business, society, etc. is the seller. In addition to ensuring that the person administering and recording the selling deed is properly approved, the statutory records of the company are required to prove its right to own and transfer the house.
- Orders from the appellate tribunal to allow the property to be sold and to nominate a guardian if the property is owned by a minor or an individual of an unsound mind.
Certificate of Occupancy: It is mandatory for the vendor to obtain a certificate of occupancy from the competent authority prior to the transfer of the property. In addition to the possibility of demolition of the property, the use of the house, without securing occupancy, subjects the buyer to a fine under the relevant building by-laws.
Approvals for Construction: The buyer should also scrutinize the building plan/construction plan approved by local municipal authorities, along with approvals provided by the government, legislative and regulatory agencies, for the provision of sanitation services, water, drainage, electricity, environmental clearance, fire protection approval, etc., before the purchase of apartments.
Taxpaying Status: The non-payment of property taxes constitutes a fee that affects the commercial viability of the property. Thus, through the local authority, the buyer must check that the dealer has not defaulted on paying property taxes. Make sure the former owners have paid their property taxes and also get a copy of it for yourself.
It is important to always ensure that with respect to land, there are no outstanding dues. Bear in mind that you will be responsible for paying all outstanding dues against the house, service or otherwise when the property is transferred to your name.
Physical Survey of Property: A physical assessment can be performed by the buyer and the extent and specification for buying a property may be verified. But as doing a property visit is very risky now due to the spread of COVID-19, hence please follow proper precautions when you are doing a site visit.
A buyer should take care of all these legal issues before buying a property. Besides that, one of the essential points is to check compliance with RERA [Real Estate (Regulation and Development) Act] 2016.
The RERA allows developers to register their projects with the authority that is formed under the Act. A customer planning to buy flat in Mohali is recommended to check whether the property has been registered with the authority.
The information available on the official RERA website for each state also offers specifics of any cases/grievances lodged against the developer of the project which, offers invaluable insight into the reputation of the developer and the project and allows the buyer to make an informed decision.
If you taking the help of a real estate agent, you should know that the law has mandated all the brokers to be registered with RERA of the state they operate in. You should only hire a broker or brokerage firm if they provide you their RERA registration. Never believe in any broker or developer who promises that they will register soon or give any other kind of excuse.
Having your own home is a precious dream of everyone but it is also a very big decision, that is why you should be very vigilant when choosing the developer or owner of property & also while going through the legal checklist for buying a property.