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Check These Legal Documents Before Buying A Property
Business
1 year ago

Purchasing a house is a wish for the majority of people. Saving up for years to purchase a home is a huge undertaking. It's a lot more difficult in reality, particularly for first-time homebuyers. It requires a lot of money to purchase a property, and a single mistake could result in a significant loss of money in the future. This is why buyers must be careful while reviewing the property Paper.

 

Although the property can be considered a real asset, the proof of ownership cannot be accomplished with just a declaration of ownership. It has to be verified, as legal verification of property by a series of documents prove the ownership of the property. The buyer could ensure that the investment will provide security and peace of mind by obtaining legal advice while scrutinizing documents and confirming essential details related to the house.

Based on the property you wish to purchase, various documents are required. There are a variety of options in the purchase of properties. However, there are certain aspects you need to research before purchasing a home. This article is an essential guide to buying a home.


 

1.Checklist for Legal Documents of a Property:


 

To start, the buyer must take the necessary steps to confirm the authenticity of the seller's identity, its type and marketability, and the seller's capacity to transfer an open and transferable title free of burdens. In the absence of these documents, the papers that last for at least ten years will need to be examined, and the seller might be required to supply the following documents-


 

  • Sale Deed:

The Sale Deed is an important legal document that confirms the sale and transfer of the property from the developer to the buyer and the conditions governing the transaction. There are instances where years after buying an asset, the owner might want to sell the property due to any reason. In that case, the sale deed is crucial. The sale deed is usually done prior to the sale contract and is only completed after both parties have fulfilled the terms and conditions of the agreement to sell.


 

  •  Mother Deed:

As the name implies, Mother Deed is an important document that reveals who is the owner of the property. A majority of banks require this when a buyer wishes to take out a loan for the home. It is possible to request assistance from local authorities while creating this form.


 

  •    Sale and Purchase Agreement:

In a Sale and Purchase Agreement, buyers and sellers agree on the terms and conditions. Negotiating the value of the apartment is a perfect illustration. Both sellers and buyers will decide on the property's value in the contract.


 

  •     Plan Approval:

Before starting construction, the builder must obtain approval from regulations such as the Building Bylaws, Master Plan, and Local Body Acts requirements. The Building Plan and The Layout Approval are necessary for this permission to be granted. Most first-time homebuyers fail to confirm that the builder has met the building plan approval rules before purchasing a home.


 

  •     A. Letter of Possession

If you're planning to purchase or sell a flat in a city, you'll require a Possession Certificate from the building company. To be clear, the letter is not evidencing that you are the owner of the property you claim. To prove the ownership, the buyer needs to obtain the Occupancy Certification.


 

  •    Completion Certificate:

This document confirms that construction has been inspected and complies with all the laws that fall under the authority of the municipal corporation or Local Development Authority. Suppose you are buying a house in Zirakpur without the Certificate of Completion. In that case, the Certificate is not recommended for first-time buyers since the building will be seen as illegal and may be punished with being evicted or fined. If the builder cannot obtain a completion certificate, the buyer should contact the municipal corporation and ask for one.


 

  •  Khata Certificate:

To pay taxes on property, a Khata is a document of revenue that provides details about the property, including the location and land size. It is also used to verify your identity when you apply for house loans. Since the Khata Certificate is required to apply for electricity or water service, the home purchase process must include it.


 

  •     Allotment Letter:

If you are looking to buy Flats for sale in Chandigarh, which is under construction, you'll require An Allotment Certificate. The letter also contains information about ways to finance the apartment as well as any other costs you may have to pay for additional services. This letter is crucial to getting a loan from a bank because it outlines the amount the buyer has to pay in advance.


 

  •    Encumbrance Certificate:

A visit to the jurisdictional sub-registrar's office or on the official website of the Ministry of Corporate Affairs would reveal any registered encumbrances on the property recorded in the case of a company. The buyer may also put out an open letter in local newspapers before closing the deal and ask for any claims from third parties who might be affected.


 

  •     Power of Attorney:

It is a legal document that allows an additional person with the capacity to be an official owner on behalf of the actual owner, referred to as the Power of Attorney. A Power of Attorney holder has certain rights to be aware of if you're buying the property.


 

   2. Land Conversion and Permission


 

In the current period of growing urbanization and rapid growth that is transforming agricultural land for non-agricultural purposes is becoming more important. However, certain state laws restrict the purchase of land for agriculture by non-agriculturists. To begin with, the buyer must review the Master Plan to ensure that the property is built in line with the municipal plan, such as residential/commercial/industrial, public/semi-public, parks and open spaces, etc. If the property's intended use differs from the zoning notified, The Town Planning Authority must issue an alteration of permission to use the land.


 

   3. Tax Payment Records:

The property is charged when taxes haven't been paid, reducing its value. If the seller isn't paying his property taxes, the buyer has to verify the status with local authorities. The seller should provide all utility bills. When the property goes into your name, you'll be accountable for the outstanding balances regardless of whether they're utility bills or not.
 

   4. RERA Approval:

In the wake of the RERA development, developers are legally required to record their projects through the entity established by law. Anyone planning for a real estate investment under the scope of RERA is advised to determine whether the property for sale is registered or not. If there are any incidents or complaints filed against the owner of the project, the information provided on the RERA website for each state will provide insights into the reliability of the developer as well as the project and can help the purchaser understand the details.
 

   5. On-Spot Inspection:

If you are purchasing flats, it is essential to conduct a physical inspection in order to determine the size of the property and its dimensions. If you are the owner of the land, it is important to draw out and define the boundaries of your property and its access points, in addition to any other physical elements that could hinder your utilization of the asset.