15 Important Points to keep in mind after Property Purchase
Buying your dream home is the beginning of a lifelong commitment. A lot can happen between the time of signing the sale agreement and the registration of the property. Till the legal possession of your property, there are several points you should take note of.
As buying a property has become a dynamic process due to the recurrent buying and selling, it has become all the more crucial for a buyer to take extra precautions during the entire procedure.
2. Due diligence of the property purchase is an important criteria during the initial stages as well as after you have bought that property. Make sure that you consult a lawyer who guides you about the documents, clauses, ongoing market rates and society related charges
3. It should always be ensured that you are dealing with the right owner and it is required to have all the members of the family of the owner present during property registration
4. Check for all the documents such as Mother deed (document that traces the history of ownership) or Sale deed, up-to-date tax paid receipts, Encumbrance Certificate and Occupancy certificate
5. Sale deed is the most important document for tracing the ownership of the land on which the property has been constructed. It gives details of the property as to how it was acquired at the initial stage and the subsequent series of transactions as well
7. If the property you are buying is a joint development (the landowner will contribute land and the builder will undertake development activity on it), then Joint Development Agreement (JDA) should be examined thoroughly by your advocate. This is important to scrutinize in such properties to check the actual ratio at which the build-up area is divided between the previous owner partners
8. Do make sure that the Encumbrance Certificate is available with you. Encumbrance certificate has the details of the last 30 years regarding sale and purchase of the property/land that is being bought
9. While possessing all the documents related to property purchase, you should also check for a copy of the approved building plans and get it verified as well
10. You should also possess a copy of the No Objection Certificates (NOCs) under the provisions of Income Tax Act and Urban Land Ceiling and Regulation Act
11. In case of an apartment, the property owner must keep in mind to insist for a copy of the Occupation Certificate (OC). This document is issued by a local government agency or a building department certifying a building’s compliance with applicable building codes and other laws, and indicating it to be in a condition suitable for occupancy
12. Immediately after you purchase a property, you should ensure that you have all the required approvals from the Municipal Corporation, electricity boards, Area Development authorities, water supply and sewage boards
13. Mutation of the property is a critical step taken after you buy a property. Mutation extracts show the whole history of the property that you have purchased and you must check if this document is also added otherwise there are chances that you might get into land disputes in the future
14. Make sure that the property is clear of any loan liability. Check if the documents are not mortgaged in the bank’s custody against a loan by the seller. This also needs to be clarified in case you plan to take a loan against the property in future
15. Make sure you do a market capital valuation of the property. In case you are buying the property from investment viewpoint, get technical experts to find out the returns from the property