Buying a home, whether for self-use or investment, is a dream come true. The purchase of property is the fulfillment of a lifelong aspiration. Many of us make monetary sacrifices and save up to buy property. That is why it is so important to ensure that the property we buy does not cause us legal problems in the future. There are a number of legal documents and points to verify before one confirms the final purchase of a property. Here is a checklist one needs to consider before buying property:
Clear Land Titles
The first and most important document to verify is the Title Deed. A Title Deed confirms whether the builder/developer owns the property that is being sold to you and others, and if he has the right to sell the property. Among many other things, this document typically verifies the transfer of title from the previous owner to the developer. It also confirms the nature of the title, that is whether the property is leasehold, development right or freehold. One should always ask to check the Title Deed in original. Getting it reviewed by a lawyer is also a good idea.
Construction Approvals/ Building Plan
Before purchasing your property, whether it is a plot or apartment, inspect the approved building plans. The building plans are the blueprint of the layout of the property and provide an idea of the various facilities such as sewage, electricity, fire safety, etc., and amenities which will be housed around the property. These blueprints are generally approved by the local municipal authority, statutory and regulatory authorities as well as by the government. A buyer should check these approved building plans to ensure there have been no deviations in the actual property.
It is now mandatory for all builders and developers to register all properties under the Real Estate (Regulation and Development) Act, 2016 (RERA). Prospective buyers should do their due diligence and verify that the property they plan to buy is registered under their state RERA. Information is easily accessible on the official website. All developers today also prominently display the acquired RERA number of the property on all types of communication.
The local authorities issue the Commencement Certificate which legally allows the builder to begin the actual construction work. Developers have to obtain various licenses, permits and sanctions before beginning construction of the property. Any construction executed without this important certificate is considered illegal.
Occupancy Certificate (OC)
Also known as Completion Certificate, the Occupancy Certificate is issued by the local municipal authority after the project is completed. It is only issued after they have reviewed the project and confirmed that it meets various regulatory and compliance requirements and is deemed fit to be inhabited. This certificate is considered mandatory by banks and financial institutions while applying for loans as well as applying for connections such as electricity, water, etc. Hence, the OC confirms that the property complies with various required codes and laws.
The Sale Deed is the final and most important document which transfers the property from the developer to the buyer. This is the document that is registered and is used as a proof of sale and transfer. In fact, when obtaining a loan for purchase of property, banks and financial institutions require the Sale Deed as a mandatory document. It contains details such as the area of the plot or apartment, the location, details of construction, payment details, date of delivery of the property to the buyer, etc.
Finally, it is also advised to do one’s due diligence about the builder/developer one is purchasing the property from. Review the information about past delivered projects, timeliness, performance, and also speak to current owners of properties from the same builder.
About Svamitva Group
The Svamitva Group has diligently crafted a 30 year old legacy of trust, reliability, and the assurance of quality in all our ventures. We have a considerable presence in our core verticals of IT, Solar Power, Architecture, Sports, Steel and Trading and Health Supplements. In real estate construction and development, Svamitva has developed various types of real estate properties including high quality plotted developments as well as residential apartment communities. We are present in the markets of Bangalore, Bijapur, Solapur, Gulbarga and Melbourne. Our realty projects are designed and delivered in line with the core values that the Svamitva Group holds true to itself across its businesses.