Purchasing a home is one of the biggest decisions of our lives. Whether it is your first flat or an investment property, the excitement of booking a property often overshadows the legal due diligence that must be a priority in today’s time. Unfortunately, that’s where many of us make mistakes, which prove to be costly.
Here are some basic legal checks that each one of us should keep in mind and undertake while buying a property in India.
1. Verification of title of the property
The first and foremost question is whether the seller actually has the legal right to sell the property?
Ask for the chain of title documents. This ensures that ownership has legally passed from one party to another without any dispute. If buying the property/flat from a builder or a developer, verify the title of the land on which the project is constructed. Remember, a defective title can lead to long court battles and even loss of the property so purchased.
2. Check for RERA Registration
Most of the real estate projects must be registered with the State RERA Authority as per the provisions of Real Estate (Regulation and Development) Act, 2016. You must check the project details, approvals, timelines, and even pending compliances on the RERA website of your concerned state. An unregistered project that is legally required to be registered is a clear red flag.
3. Ask for Approvals and Sanctions
Ensure that the builder or the developer has obtained all the necessary approvals such as the sanctioned building plan, commencement certificate, RERA certificate, environment clearance, and the most importantly the Occupancy Certificate (OC). Accepting possession without OC can lead to legal complications in the future.
4. Reading the Agreement for Sale
Never sign an Agreement for Sale or any other document without reading the fine print. This document embodies the rights, duties, and obligations of both the buyer as well as the builder. Pay close attention to specifications of the property being purchased, timelines of construction and possession, terms of cancellation and refund and the inclusions under the head “additional charges”.
5. Never rely on verbal assurances
Ensure that every promise is duly recorded in writing, whether it pertains to amenities, completion and possession timelines, sale consideration, or return on investment. Be informed that in the transactions related to property, what is not written does not exist.
CONCLUSION
Buying a property is not just an emotional decision but also involves legal transactions with significant financial and legal commitments. Spending some time on proper legal due diligence can save years of litigation. Before investing you hard earned money, ensure paperwork is as solid as the foundation of the building.
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