Things to Know Before Buying a Property
Every one of us desires to own a property and be independent. Buying a property in India has an emotional and a financial aspect and an important phase in everyone’s life. Before you buy a property, you should be aware of all the legal documents and issues concerning the property buying. This will keep you away from legal aggravations and disputes.
- In depth research on innumerable aspects ranging from choosing the site to the land registration is required. Various builders and property dealers can lure the buyer with their glossy brochures with many gleaming offers along with freebies, but fail to make you aware of all the legal issues and documents while buying a property.
- It is mandatory that the buyer has to seek advice and do an intensive research on the background and nature of the concerned property. Various facts like the property confirmation and others should be confirmed and avoid making an advance payment before viewing all the necessary documents.
- Facts like the confirmation of the land stating that it has a clear history with an appropriate market title and price should be considered. Following are a few points which can come in handy while buying a property;
Basic awareness: Before buying a property you should check for the land tenure, possession right, leasehold characteristics and others should be well explained. All the documents should be available on demand. It is mandatory that the owner has to provide all the documents without skipping them.
Awareness of the Title deed: One of the most important documents required while property buying is to get the original documents of the title deed. Make sure you confirm the ownership of the owner and that if he is capable to sell the land or if it belongs to someone else. Demand for the original title deed rather than just having a glance at the xerox copies. The title deed contains all the required and true facts. Enquire if the owner of the land has permitted access to any other individuals and that all the pros and cons of the land are disclosed to the buyer.
Lawyer: It is advisable that you get the title deed and other property documents examined by a lawyer. The buyer has every right to demand the previous deeds of the particular land from the owner.
Bills and duty receipts: Every property owner is subjected to pay the tax which is levied by the government. Ensure that the owner has paid the tax up to the date and does not have any dues. You can enquire all these details in the municipal and government offices. It is mandatory that the owner has the latest tax payment receipt to show it to the buyer on demand. You can visit your revenue and municipality departments to know if there are any dues, notices or any issues on property which are not complied by the owner.
Property tax inspection: Property tax does not confirm ownership but you need to ensure tax is paid on time. It consist the owners name or the tax payer’s name. Make sure that one of the columns consists of the appropriate owner’s name. If this aspect is not clear you can always contact the municipality or the village office to find out about the ownership details. Other bills for water, electricity and maintenance also should be paid up to date.
Loan on sworn land: Various rural parts and villages in India have owners who pledge on their land and seek loans. The buyer should make sure that if the land is pledged, the owner has paid all the dues with a release certificate from the bank. It is important that the buyer should see the release certificate stating that all the dues are paid rather than just the receipt. The Property has to be free from all the debts legally before being sold. In case you buy the property without a release certificate you might require it when seeking a second loan from the bank.
Encumbrance Certificate: It is very important for the buyer to find out if the property has any legal issues. This can be proved through a certificate known as the ‘Encumbrance Certificate’. The owner can demand an encumbrance certificate of over 13-30 years. This certificate is available at the sub registrar office stating that the deed is registered and has to legal dues, issues or complaints concerning the land.
Possession certificate: The buyer can demand a possession certificate if he is not satisfied with the encumbrance certificate. The possession certificate will be available at the municipality office. This certificate will prove the ownership and the payment (if any due) information.
Multiple owners: There are various instances where a land belongs to more than one owner. In such cases the buyer should seek the consent of all the owners and take a release certificate from each of them.
Land measurement: Measuring the land at the time of registering and purchasing is advisable. Make sure that all the measurements and borders measured are accurate as mentioned. Seek the help of a surveyor to get your land measured which can avert disasters down the years. Further, for clearer accuracy, you can also take a survey sketch form the survey department.
Deal agreement: when the final decision of the select land and the deal is over, the said and agreed decisions are put down in the form of an agreement. All the aspects of financial terms and agreements are mentioned in the agreement which has to be signed by both the parties. Signing this agreement ensures that the owner and the buyer stand by their decision. It is also advised that you can sign the agreement by giving a certain amount of advance money. This will also further avoid the sale of the property to someone else if an extra amount is offered. The agreement should be mentioned in a 50 stamp paper stating the actual cost, timespan, advance amount and the actual sale.
Seek the help of a lawyer to make the agreement and both the parties should sign the agreement in the presence of two witnesses. If this agreement is violated by either of the properties legal action can be taken.
Registration: This is one of the most important aspects of buying a land. Your property has to be registered in the sub registrar office with the title deed and the concerned details. Avoid having handwritten documents. The owner should make sure that all the details are accurate so that to avoid the increase in the registration fee. While registering the property ensure that all the required legal documents are in place with two witnesses. The registration fee differs depending on various factors.
Also read:
Checklist for Buying a Property
Property Buying: How to Handle Delays in Project Completion
