Finding a property which is free from all kinds of legal issues is quite an achievement. With the significant growth of the real estate sector, the number of disputes over land has also gone up. Behind several project delays, fights over land ownership have been a top reason. Though the property law, which is at several stages of implementation across the county, is going to make the situation more beneficial for property buyers. Here is a checklist to know whether the land or property you are buying is worth investing or not:
Check for the Title Papers
A property you are buying must have a clear title, without any dispute. If you buying a new property, the title of the land or property should be with the construction company. If purchasing a resale one, examine the papers wisely or visit the property lawyer to check the authenticity of paper documents.
Ask For Bank Approvals
If you are getting your house financed from the bank, your half work is already completed. Before approving your home loan, banks assess the property. For an apartment project, various banks offer on-site offers, which means that the property is legally verified and have all approvals in place. Still, do check the conditions before signing the home loan agreement with the bank.
An encumbrance certificate (E.C) is a legal document which means a property is legally free from any mortgage or pending loan. It also lists the name of the former owner of the property. This is a valuable document when buying a resale property or land to know whether the previous owner had mortgaged the property or land and if all the dues have been paid.
Tally the Approved Plan with Actual Site
If you are buying an apartment project, make sure you get to see the copy of the approved map from the real estate builder which is passed by the local authority. It can give you a fair idea regarding the area and the construction space if it illegally encroaches.
Check Out Property Tax Slips
If buying a resale property then ask for property tax slips from the former property owner. It will give you an insight into two factors ― whether the area or the colony you are buying is regularised or illegal. And if the property you are buying is duly registered and there are no dues pending with the municipal authority.
Project Has a Registered Society
Every apartment or flat project should have a registered society along with a resident welfare association. It is itself a legal process and also offers an idea regarding the legality of the project and the property you are buying.
There are plenty of things you need to do before you buy a property in India. It might be possible that you spend all your savings or get a home loan from banks. Hence, it is vital to take these points seriously and make the right decision with peace of mind.