Legal Checklist To Follow Before Buying A Property

 

Legal Checklist To Follow Before Buying A Property

Buying a home becomes much easier when you stay organised with your paperwork and have a good understanding of the legal aspects. So, read on as Prashant Thakur, regional director and head of research at Anarock Group lists out the essential documents you’ll need to successfully close a deal:

Title deed: The title deed is an important legal document that confirms a person’s ownership rights to a property. As a buyer, it’s crucial for you to carefully examine the title deed to ensure the validity of the transaction.

• The seller should provide you with the original title deed for verification purposes and not a photocopy;

• The title deed needs to be in the name of the seller. You can ask for identification proof as well from the seller to ensure that he is the person he claims to be;

• Check whether he is the sole owner of the property or not. In case of joint ownership, you will need proper legal approval of all the co-owners of the property. It is advisable to get the current, as well as previous title deeds properly scrutinised by your lawyer to ensure that there are no loopholes.

Encumbrance certificate: The encumbrance certificate is crucial as it helps you determine whether the property you want to buy is free from any loans or mortgages. It’s a good idea to have your lawyer carefully review the certificate to make sure everything is in order. You can obtain this certificate from the sub-registrar’s office where the land is registered.

Release certificate: In some cases, if the seller had previously pledged the land as a mortgage to take a loan. You should ask the seller to get the ‘release certificate’ from the bank stating that there is no pending debt on the land. You should then get this certificate looked over by your lawyer to be sure that the land is indeed debt-free.

Approved building plan: If you’re planning to buy an apartment, it’s important to review the authorised building plans. The Floor Space Index (FSI), which shows the ratio of building area to land area, typically falls within the range of 1:2. Additionally, make sure to verify that the total number of apartments in the plan matches the number approved in the permit. 

Zoning laws: When you’re buying land, it’s crucial to consider the zoning laws. That simply means you can’t purchase a plot of land that’s set aside for residential use and construct a business on it. Cities have well-structured ‘Master Plans’ in place with strict zoning laws. This means that a piece of land assigned for a specific purpose cannot be utilised for anything else. Confirm that the land is suitable for your intended purpose.

Occupancy certificate: This is a very important legal document that allows you to physically possess the property. It mentions that the property has been inspected by the municipal or developmental authorities and the developer has complied with all the statutory and regulatory conditions. It is essential to buy the property only after procuring the Occupancy Certificate (OC). Failure to do so may result in a penalty or even an eviction.

Stamp duty payment receipt: To ensure a hassle-free property purchase, it’s important to have proof of stamp duty payment. This can be in the form of either an online receipt or a stamp paper of equal value to the stamp duty amount. Having these essential documents will make the buying process smoother. It also gives buyers confidence, knowing they have clear and legally sound paperwork when making such a big investment like buying a home. So, when you’re going through documents, it’s a good idea to seek advice from a legal expert. They can help ensure everything is in order and help you understand the terms and conditions you’re agreeing to.