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Home is a place where a person gains a sense of security for themselves and their family. People often spend their entire life savings and take on the added responsibility of home loans to purchase a home and to ensure there is no threat to the comfort and safety of the home, you have to be aware and diligent of certain aspects when buying a house.
When buying a property, thorough due diligence should be carried out prior to investment. In doing so, one explores and discovers: (i) the rights of the seller to the property, (ii) the nature of the property – freehold or leasehold, (iii) if there are encumbrances/mortgages or any pending litigation regarding property, etc. and the due diligence process ensures that any unwanted surprises are kept at bay.
With the advent of the Real Estate (Regulation and Development) Act 2016 (“RERA“), all new projects must be registered with the RERA authority established for the state. Under RERA, builders/developers are required to disclose project-related documents, including title, plans, clearances, pending litigation, developer rights, number of apartments/units sold, stage of construction, proposed completion date, etc. Therefore, if a residential property is purchased in a new project, the first thing to do is to visit the RERA registration page regarding the project and check as many details about the project from there.In addition to this, Sub Registrar offices in many states also provide occupancy certificates , which record details of documents registered in relation to a property.Examination of these gives a fair idea of any title related issues.
Precautions to be taken when buying a property from an individual:
If you are buying a property from an individual who is claiming rights through a deceased person, it is advisable to first obtain the family tree of the person in whose favor the property belonged and ascertain who are his heirs and whether the seller actually has the right to sell the property or not. If the person died leaving a will, indicate whether this will is homologated by the competent court or not. If there is no will, then his heirs would have a right to the property and no individual person can sell the whole of the property without the other heirs agreeing to such a sale.
Company and government contributions:
If the property is an apartment, located in a corporation, the records of the corporation indicating whether its dues have been paid or not, share certificates are in place and duly updated, the age of the building and its structural stability , etc. must be checked. This can be verified by obtaining a certificate or letter from the Society or by being a member of the Society’s NoC. It is also important to check whether all property taxes have been paid by the seller or not.
Looking for a home loan? Make sure of what is mentioned below:
If the buyer intends to take out a mortgage, it should be checked whether the project (in case of new development) is approved by a particular bank. The disbursement process is smoother if the project is already approved by a bank. Additionally, once the loan has been utilized, the buyer/borrower may consider obtaining additional life insurance at least for the amount of the loan so that in the event of the unfortunate death of the breadwinner of the family responsible for repaying the loan, the survivors are not responsible for the loan and the family can use the claim amount to pay off the loan and secure the home for themselves.
Although the above can be taken care of by the buyers themselves, there are many other aspects to consider and it is always advisable to seek the professional services of a real estate lawyer when buying a property. house who, in addition to the above, could also advise on the draft document and requirements of any additional NoCs from authorities (depending on the location of the property), stamp duty, registration, taxation, etc
Originally posted by MoneyControl
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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