7 things to keep in mind before buying a house

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Vivek Singh

Buying a home is dream come true for many but it can also become a nightmare if proper procedure is not adhered to. There have been many cases where buyers have had to let go off the property as it was either an  agricultural land or the title was disputed or there were pending dues.

Surprisingly, people in the metros also fall prey to  sellers leading to a risky deal where the buyer ends up losing his hard-earned money and mental peace. Most buyers get attracted by the lucrative offers being offered by property brokers, mostly new launches. Thus, it is imperative that buyers should take care of every aspect related to a property deal before taking a final call.

Clear title
A buyer should make sure that the title of the seller is clear and it should be free from encumbrances. All the documents related to the property for a period of 30 years should be examined, if not 30 years then documents for a period of 12 years should be examined. The buyer should ask the seller to provide the following documents:

- Title documents of the property – government order for grant, succession certificate, sale deed, gift deed, will, partition deed, etc
- Nature of title – leasehold, freehold, or development right
- If the seller has development rights, he should provide a development agreement and a power of attorney
- Documents should be stamped and registered at the office of the jurisdictional sub-registrar of assurances
- Information on pending or past litigation
- Seller should submit original documents.

Identity of the seller
In case of individuals, check the residence status or nationality.

- If the property is owned jointly then identification of all the owners should be checked
- If a company, firm, society, is the seller then the documents of the entity are necessary. This will ensure that it has the ability to transfer the property
- If property is owned by a minor or a person of unsound mind then the seller should have orders from the competent court to sell

Land use conversion
Acres of agriculture land are now part of the urban limits and it is important to make sure that agricultural land has been converted to residential use.

Many states restrict purchase of agricultural property. A buyer should therefore check the status of the land being sold.

Also check the master plan to ensure that construction is being done according to the plan such as residential, commercial, industrial, public/semi-public, parks and open spaces.

If construction is different from zoning then the change of land use permission from the Town Planning Authority is a must.

Construction approvals
The layout plan should be approved from municipal authorities along with documents issued by authorities for providing infrastructure facilities.

Occupancy certificate
Occupancy certificate from the competent authority should be obtained before handing over the property. If this has not been obtained, there is a risk of the property getting demolished. There may also be penalties under building bye-laws of that area.

Status of tax payment
A buyer should make sure that the seller has paid all the dues to the municipal authorities and has not defaulted.

RERA complianceDevelopers must register their project with RERA and the buyer should verify if all provisions have been complied with.

The author is a lawyer, Supreme Court of India