by Rajesh Mourya
Buying property in India is a significant investment, and ensuring that all legal aspects are covered can save you from future disputes and financial losses. Here’s a comprehensive legal checklist to follow before purchasing a property in India.
1. Title Verification
Before proceeding with a purchase, verify the property’s title. Ensure that the seller has clear ownership and the right to sell the property. Demand original property documents and get them verified by a legal expert.
2. Encumbrance Certificate
This document proves that the property is free from any legal dues or mortgages. You can obtain an encumbrance certificate from the sub-registrar’s office.
3. Sale Deed and Mother Deed
The sale deed is a crucial document that legally transfers property ownership. The mother deed traces the ownership history of the property and is vital for establishing a clear title.
4. Approvals and Permits
Ensure that the property has all the necessary approvals from local authorities, including land use clearance, environmental clearance, and building plan approval from the municipal corporation.
5. RERA Registration
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), all real estate projects must be registered. Check the RERA registration of the property to ensure compliance.
6. Land Use Verification
Check the land use details with the local development authority to confirm whether the property is designated for residential, commercial, or agricultural use.
7. Property Tax Receipts
Verify that all previous property tax payments have been made by the seller to avoid legal hassles after purchase.
8. No Objection Certificates (NOCs)
Request NOCs from relevant authorities such as the water department, electricity board, and municipal corporation to ensure the property has no pending dues or disputes.
9. Bank Approval for Loans
If you’re financing the property through a bank loan, ensure the bank has approved the property. Banks conduct legal due diligence before sanctioning loans, which adds an additional layer of verification.
10. Possession Certificate and Occupancy Certificate
For newly constructed properties, ensure you have the possession certificate and occupancy certificate issued by the local municipal authority. These documents confirm that the construction is legal and ready for occupancy.
11. Stamp Duty and Registration
Ensure that the sale agreement is stamped and registered at the sub-registrar’s office to legally transfer ownership to your name.
Conclusion
Buying a property is a significant financial commitment, and following a thorough legal checklist can protect you from potential frauds and disputes. Consulting a legal expert before finalizing the transaction is always recommended to ensure a smooth and legally sound purchase.