List Of Precautions You Should Take Before Purchasing Property - Properties

Forum 7 years ago

List Of Precautions You Should Take Before Purchasing Property - Properties

There is an old English proverb, "Precaution is better than cure", which would be most appropriate when buying an immovable property.

Although there are several laws in place that protect a purchaser of property, self-help is the best help and one must do due diligence before buying property.

Although the below mentioned list of precautions to be taken are not exhaustive, some of the important aspects one must look at are briefly as follows, though they may vary case to case:


Title of property

Clear title to a property is one of the most important factors to be considered before purchase. There are various means to investigate the title such as:

(i) by studying the documents of title to ensure that the owner has proper ownership to the property. The documents of title should be studied very carefully as any shortfall may lead to a defective title.

(ii) taking inspection of the original title deeds.

(iii) taking search of the land records and the records of the Sub-Registrar.

(iv) taking search of the records of the society where the property is in a society.

(v) issuing public notice in newspapers calling for claims in respect of the property.

Inspect sanctioned plans
Sanctioned plans and commencement certificate by the concerned authority should be inspected, especially for buildings under construction.

If the building is not built in accordance with sanctioned plans, the completion certificate will not be granted.

For buildings that are complete, occupation certificate/completion certificate should be verified.



Permitted user and Restrictions
This aspect should be verified as well. For example, one should see whether the property is residential or commercial as per the Development Control Regulations.

Other factors such as heritage rules, set-back for road widening may apply to certain buildings, which should also be considered.

Documentation
Proper documentation should be put in place for purchase of the property.

The sale document should be properly stamped and registered and the original title deeds should be taken by the purchaser from the seller.

Agreement must be witnessed by two individuals
The agreement should also state that all the dues related to the property have been cleared before it is transferred.

The contract must fully indemnify the buyer against any disputes related to the title and possession of the property.

The agreement provides information regarding the payment made by the buyer, including details of the mortgage, if any.

It also outlines the property's location and the municipal, district or collector's land record number.

The chronology of construction and handing over of the property is included.

The agreement must be witnessed by two individuals from the seller's side.

Besides, the agreement also contains the mode of payment, details of occupancy certificate, and insurance of the building.