Ways to check whether your property is legal or not

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Legalities of home buying are often something we miss paying heed to while purchasing a house. However, as the tax benefits are critical to a property, you must have an idea about the legal and financial implications attached to a sale or purchase of a house.

Home buying is a once in a lifetime experience for most of the urban consumers and is the biggest purchase where a major chunk of one’s savings is invested. However, as the real estate is an unorganized sector, consumers are often misled to make wrong property deals. Therefore, it is essential that home buyers should be aware of their rights and the methods to verify the property proposed by the developer. A buyer can associate with a credible real estate broker to guide them through this journey.

One can start with a basic background check of the developer.  Some of the important details that a buyer should delve into includes, a number of projects that are executed by the developer, delivery of the project, the quality of the project and the amenities and facilities offered at the time of possession. A developer should comply with all the promised amenities. In addition, also check the history of controversial projects if any and the reasons for the controversy.

Once the basic faith is established, the consumer should check the documents like development agreement, the power of attorney, intimation for disapproval (I.O.D) and commencement certificate. The agreement when to execute, approved market value, building completion certificate, occupation certificate, floor-CC, stamp duty and registration also need to be checked thoroughly.

Once you have cleared and checked the legitimacy of the property. Check the title deed from the seller, as this is the most important verification. One can search the records at the sub-registrar office. This report will consist of owner name and the related changes in the Title.

Then comes the Khata, which is a legal document that sustains the title. This document will have the details of the present owner. This can be confirmed with the local municipal records and a buyer should check that the Khata is changed in his name as it is needed to acquire loans, electricity bills etc. A professional help from the property lawyer would make the process easier.

Look over the project plan, see if the building plan is approved by the authorities; in the case of under-construction project, one can also inspect the project plan. This can be done by comparing the plan to the actual built-up area of the project. Don’t forget to verify the layout approval with concerned authorities. To check legal dues, one can verify the encumbrance certificate which certifies the property is free from all legal dues and mortgages; if the property is in a society then no objection certificate is required to check the legal status. And in the case of a plot, check the property card / 7 x 12 in detail.

To further know about legal approvals, check whether the property is approved by the leading banks. Banks will only approve the properties which have legal clearance and valid documents. The banks check all the necessary documents and title clearance to be sure that the property is free from litigations. Realty experts suggest that the property buyers should check the necessary documents and the builders profile along with a track record.

Disclaimer: The views expressed in the article are solely of the author and may not represent 99acres.com's opinions on the subject. 99acres.com does not take responsibility for any actions taken based on the information shared by the author.

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