Essential steps to be taken before buying an Apartment

Buying a home is dream come true for many but it can also become a tedious process if proper procedure is not adhered to. Surprisingly, people in the metros also fall prey to?sellers leading to a risky deal where the buyer ends up losing his hard-earned money and mental peace.

Many times, buyers get attracted by the offers being offered in mostly new launches or by property brokers. Thus, it is important that buyers should take care of every aspect related to a property transaction.

1.??Property documents checklist:

a)?????Title documents such as an order for grant, succession certificate, sale deed, gift deed, will, partition deed, etc., evidencing the transfer of title over the years, culminating in the vesting of property with the seller.

b)?????In the case of the seller claiming development rights to the property, the development agreement and power of attorney, executed by the owners in favor of the seller.

c)??????All title documents are duly stamped and registered at the office of the jurisdictional sub-registrar.

d)?????Property Card/Khata registered in the name of the seller.

e)?????Information on existing or past mortgages/charge/lien/encumbrances.

f)??????Information on pending or past litigation.

g)?????Availability of original title documents with the seller.

2.??Verify the identity of the seller:?

Verify whether consents from concerned government authorities are required for the sale or identification of all owners, in case of properties held jointly. Where the seller is a company, trust, partnership firm, society, etc. the constitution documents of the entity are necessary to confirm its ability to own and transfer the property, besides ascertaining that the person executing and registering the sale deed is duly authorized.

Orders from the competent court, permitting the sale of the property and appoint a guardian, where the property is held by a minor or person of unsound mind.

3.??Verify conversion and land-use permissions:

The buyer must examine the Master Plan and satisfy that the property is developed in accordance with the zoning plan – such as residential, commercial, industrial, public/semi-public, parks and open spaces, etc. Where actual use is different from the notified zoning, obtaining orders from the Town Planning Authority permitting a change of land use, is mandatory.

4.??Verify the construction approvals:

For purchase of apartment or land with constructed building, the buyer should also scrutinize the building plan/layout plan sanctioned by the local municipal authorities, along with approvals issued by government, statutory and regulatory authorities, for providing infrastructure facilities, water, sewage, electricity, environmental clearance, fire safety approval, etc.

5.??Verify the occupancy certificate:

Use of the property, without obtaining occupancy, exposes the buyer to penalty under the applicable building bye-laws, besides the risk of demolition of the property.

6.????Ascertain the status of tax payment: ?

Non-payment of property taxes constitutes a charge on the property, affecting its marketability. The buyer shall typically ask for the receipts of all utility bills from the seller as once the property is transferred in your name, you will be liable to pay all pending dues against the property, utility, or otherwise.

7.????Ascertain the status of Encumbrances:?

Searches at the jurisdictional sub-registrar office or the official web portal of the Ministry of Corporate Affairs (if the seller is a company) will reveal information of any registered encumbrance?on the property.

8.????Ensure compliance under the Real Estate (Regulation and Development) Act, 2016 (RERA):

A buyer, intending to buy a property in a project coming under the ambit of the RERA is advised to verify whether the property has been registered with the authority. The information available on the official web portal of RERA for each state also provides details of any cases/complaints filed against the developer of the project and default by developer, if any, and thus, provides useful insight into the credibility of the developer and the project and helps the buyer make an informed choice.

9.?Documents required in case of loan outstanding:

In case there is any loan outstanding on the property you are buying, it is crucial to perform due diligence and check some documents, before signing a deal. You can also apply for the transfer of the seller’s loan to your name, in case you are planning to take a loan for the property’s purchase. ?It is advisable that the buyer requests for the closure of the loan and gets a ‘no dues certificate’ from the bank, before the purchase.

Ideally one should always take the assistance of a qualified real estate lawyer when buying a house. In many cases, timely conducted legal due diligence has avoided unwarranted future litigation for the parties. A real estate lawyer can help you identify any contingencies you may have overlooked.

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