Before you Buy a Property in India

Buy a Property FAQs

To buy a property or land that’s for sale in India is a great investment opportunity but there may be some questions that arise while making the decision. Some of the questions and their answer are as follows:

How can one acquire ownership of a Property or land that’s for sale in India?

One can acquire ownership of an immovable property in any of the following ways:

  • By inheritance of ancestral property
  • Through Will
  • Acquisition by oneself such as purchase etc.
  • Through gift, trust, settlement deeds
  • Grant by the Government
  • Through partition deed
  • Through decree of Court

In simple words, there are two ways of acquisition:

  • By the act of parties.

Example: Purchase, Gift, etc.

  • By operation of law

Example: Inheritance, the decree of Court, etc.

What are the things to look for when selecting a Property or Land for sale in India?

There are various aspects that the buyer should consider at the time of selecting the property. The major factor is price which is governed by demand and supply and may vary on a project to project basis other than this the other concerning agents are –

  • the budget
  • the type of property
  • the location
  • the objective of buying

What are the various documents involved to buy a property?

It is important to know all the documents involved in the process of assets.

1.  Check

  • that the Title is in the name of the developer/builder
  • the builder has all the licenses, approvals, development rights
  • the marketable title of the development
  • the provisional layout or building plan of the property
  • the strength of the foundation of the property
  • the carpet area of the asset, Built-Up Area & Super Built-Up Area
  • if the allotment letter or the sale agreement was duly executed
  • if the project is approved by reputed financial companies which can help in getting financial loans if required

2. Ensure that the conveyance deed is registered. The deed is a signed legal instrument that shows a deed or title has been transferred. It is signed, witnessed, and notarized by the seller and the buyer

3. Ask for Completion Certificate

Checking all the documents related to the property is imperative to buy a property or land that’s for sale in India. The documents such as Deed of Conveyance, Land registration status, Mutation Certificate, Land Sanction Plan/layout, and Payment Schedule along with the origin of the property,  Occupancy Certificate, various sanctions from the authorities, the chain of Title, Completion Certificate.

What is a Sale Deed?

  • The Sale Deed is a legal document which transfers the ownership of the property or assets in exchange for consideration or a price paid from seller to the buyer.
  • This instrument has to be mandatorily registered with Sub-Registrar office following this ownership gets transferred to another person.

What is meant by Carpet Area, Built-Up Area & Super Built-Up Area?

  • Carpet area is the precise area enclosed within the walls, i.e., the exact area to lay the carpet (wall to wall). This space does not include the thickness of the inner walls. It is the area that one uses.
  • Built up Area are the carpet area and the thickness of outer walls and the balcony.

Super Built up Area includes all the area that is considered as common area and the built up area. Areas regarded as common areas are the lobby, lifts shaft or elevator, staircase, the corridor outside the flat, etc.

Guidelines to NRI investors post demonetization

post-demonetization

The words “Property for Sale” always create a lot of interest. It is important for people to learn to protect their properties. More so, in this era post demonetization and the effects, the current wave is supposed to have on the real estate sector too. The first step in this direction is to get the required documentation in proper shape. This includes the registry titles and the ownership details.

One can buy a house either directly through the seller or through real estate agents. A common and prominent way of buying property is to invest through Builders. Unfortunately, it is common practice for such land developers to delay or completely avoid handing over of built apartments at the prescribed time. This results in monetary loss and mental stress to the customers.

It is, therefore, crucial to verify the past records of the builder –

  • See what kind of reputation he has in the context of the quality of construction and services.
  • Make sure if he has been giving the possession on time or not, who is going to be managing the property in the long run, what kind of credible associations he has and what is his reputation regarding the customer servicing.
  • Important to check out the balance sheets to see how the company has been faring over the past few years.
  • If the project is a Joint Venture, then you need to check out the details of the partner too.
  • The price framework is a crucial aspect when you check out an asset for sale – being clear on your budget always helps.
  • An investor must do a complete due search before investing in any asset
  • Do a background checks on the builder and his firm including looking into all previous projects completed by the developer
  • Check if the title documents are complete and also verify about all
  • Make sure all the papers are scrutinized by legal service experts before signing the agreement
  • The most important components of the agreement should be the cost, total area & size of the unit, the payment plan, date of completion and possession

If there are any conflicts in this matter, remember:

  • Consumer complaint needs to be filed in the State Consumer Commission.
  • In the present scenario, Consumer courts in India have become aggressive and quick.
  • A penal interest is charged from the date of possession mentioned in the original agreement.
  • Complete representation is provided by us throughout the matter till it reaches its logical end – without an Nri  having to travel to India.