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Buying a property is perhaps the single biggest investment made by a person
during his lifetime. Thus, you need to exert due caution in buying a house, lest
your precious savings goes down the drain. After zeroing in on the desired
property, you still would have to wade through a formidable maze of tedious
legalities and endless paperwork. Therefore, in order to cruise home in style,
you ought to acquaint yourself with various legal jargons and other
technicalities. Find out more about buying property in India.
Purchase Property In India
The Title Deed
The Title Card is an investigation into the title of the land, over a period of
30 years, states whether the property is unencumbered and has a clear and
marketable title. The detailed report should be prepared for the seller by his
lawyer and should be checked by the purchaser's lawyer. If the title were not
clear and marketable, most of the major financial institutions would refuse to
finance this property. Hence, you should approach a financial institution in
order to check if they would provide a loan for that particular property.
Property Under Construction
For a project under construction, you should ask for the allotment letter and
development agreement. The allotment letter contains details regarding the
agreed price, payment and construction schedule, house plans, delivery date and
builder's liability in case of late completion or problems after possession. It
is issued to the buyer upon payment of the 15% of the property value to the
developer. The development agreement is inked between the builder and the
landowner and contains details regarding the terms and conditions on which the
landowner has permitted development of his property.
Constructed Property
In case of constructed properties, you should ensure that the seller has the
title and possession of the property as well as the right to transfer the
property. Check if the building adheres to relevant municipal/planning authority
requirements. Ensure that there are no tenants and get a declaration that the
property was purchased from the seller's funds and is not mortgaged. Check
whether dues such as property tax, society, water and electricity bills, etc.
have been paid in full. Make sure to take possession of all relevant documents
and the original allotment letter, completion certificate, occupation
certificate and all other documents, given by the original builder.
Stamp Duty And Sale Deed
The stamp duty is usually a percentage of the transaction value levied by the
state government, on every registered sale. The agreement to sell clearly states
the stamp duty, which is usually paid by the buyer, and he gets his name
registered in the land revenue records. The final sale deed should be stamped
and registered at the appropriate local area office. Both the developer/seller
and the purchaser need to be present at the sub-registrars office, for
registering the agreement.
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