- Property Search and Purchase by NRIs
- Be Judicious: Many non-resident Indians (NRIs) purchase property in India. Even though searching and buying property in India is a wise decision, the last thing a non-resident wants on their hands is a legal dispute about their asset in India. Generally, Indian courts are pretty slow, and cases can drag on for more than ten years. NRIs who search and purchase an asset in India should be more cautious before signing contracts and giving deposits. Seeking the legal advice of property management lawyers to verify documentation is wise and judicious.
- Grab a Local Property Lawyer: The main problem with real estate purchase in India is, the verification of assets being acquired. While India is progressively moving towards computerizing property records, this facility is not yet available everywhere in the nation. Most documents require to be validated manually, and such property searches are often time-consuming. Hence taking the help of property management lawyers becomes necessary.
- Checklist: When buying property and land, here are some of the things that NRIs real estate buyers must consider:
- Check ownership documents
- Getting an Encumbrance Certificate (EC)
- A ‘Release Certificate’ Land ownership record check need to be done.
- Do you know who owns it? Only the legitimate property owner can sell their asset, therefore making sure that you are dealing with the legal owner, is one of the important factors while buying assets in India. The ownership records of the possession of a property for at least past 30 years ought to be checked through the list of all transactions related to the assets, during this period.
- Search and verification of the property owner should be done at the appropriate registration office.
- Burden -Free Property: The property seller may have pledged the possession to a bank to get a loan. The purpose behind a no encumbrance certificate is to find out whether the assets being purchased hold any mortgage or debt on it. The document as per property management lawyers will present all the transactions registered associating to a distinct asset for a specified period of time.
II How to get no encumbrance certificate?
- A no encumbrance certificate or documents can be obtained from the sub registrar’s office, where the deed for the property and land is registered.
- The method includes: –
- Submitting an application form to the sub registrar’s office, under whose jurisdiction the property is located, to get the certificate.
- Giving full detailed information of the asset, such as- correct survey number, etc. for which the license is needed. You should get this detail from the salesman.
- Providing Residence proof.
- The appropriate fee. That is based on the number of year’s one wish to get the document for yet at least 30 years is normally suggested.
- The instrument is allotted by the Sub-Registrar and will assist in finding data about the ownership such as:
- Documents recorded regarding the ownership.
- The other parties to the real estate record.
- Nature of charges generated if any funds secured or transacted concerning the asset.
- License information registered details and documents identifying numbers etc.
- Though the instrument is an imperative document while purchasing real estate in India, there are some remarkable limitations affirmed by property management lawyers, on the information that these certificates present.
III Limitations of No Encumbrance Certificates: –
- These certificates are granted for some precise period, and the fee is asked respectively.
- It does not cover any period before or later than the time defined.
- Any encumbrance, earlier or later than the dates for which the document is given, would not be known. This is the reason information should be asked for a longer period of time.
IV Release Certificate for a property
In the matter, if an asset was vouched by the seller in the past, even though the loans are paid, ask the seller to provide a release certificate. It is a certificate issued by the bank that provided the loan, authenticating that all loan payments are clear and there are no outstanding dues associated with the ownership.