To ensure you are getting a fair deal, it is important to run some checks on the property you purchase. You can seek the help of experts if required to figure out whether your property is legal. However, there are few red flags one should watch out for before putting your money or making the investment.
Get your papers right
The proof that the building you purchase is legal can be seen in the agreement papers. Besides, when you buy a property, documentation will be the first checkpoint. Sometimes, the buyer can be confused with all the legalese and the process of property buying can often be messy. Doing proper research and gathering adequate information will assist you in navigating the real estate pitfalls you might encounter while purchasing a home. While buying a property, it is essential to check documents including Possession certificate, Land Tax Receipt, and Encumbrance Certificate.
Apart from that, people should also pay attention to ensure that the house they are purchasing is exactly as per the approved layout. Even small changes are not acceptable- for instance, you can be hauled up for alterations such as adding a roof to your garden space. Moreover, all residential projects require approval from authorities for every sq. ft that is used for occupancy. The floor space index or Floor area ratio (FAR) illustrates how much area you are allowed to construct on given plot size.
Agreement to sell is the initial document prepared in anticipation of the sale of a particular property. This document states the terms of conditions between the seller and the buyer such as the purchase price as agreed upon. Further, it consists of a detailed description of the property. A significant document that records the actual transfer of ownership of the property is the absolute sale deed. The sale deed or title deed should be registered at the office of the sub-registrar under whose jurisdiction the property would fall.
The process of retrieving the series of documents associated with the history of a specific property that has been registered with the concerned authority is called the property title search. This often includes joint tenancy, names of titleholders, and a description of the property. These documents are especially important while procuring a home loan. The Receipt of property tax indicates if the previous occupier or owner had paid all the taxes and none have been left as due. These receipts of property tax serve as an important document of evidence and establish the legal status of the property.
To check whether the property is free from all encumbrances or loans an encumbrance certificate will be essential. This document contains all the details about transactions relating to the property and acts as a key document for procuring a loan against property from banks. One should keep in mind the government has the right to evict you from your house if the property is proven to be illegal. In such a scenario you will have no choice but to vacate. Therefore, it is important to verify all the necessary documents before purchasing a property.