Confirm the approved plans from the appropriate authority are in place.
Check that all other permissions from various authorities are in place. E.g. Utility Companies, Environment clearance, Airport Authority, etc.
Confirm that the Land title is clear and there is no disputes/litigation (Title Certificate).
Confirm Builder has the Intimation of Disapproval (IOD) and commencement Certificate (CC) to start construction.
Have the agreement evaluated by an Advocate. Check possession date promised and provide for penalty if Builder does not deliver as agreed.
Check and negotiate the payment schedule. Do not book in Pre-launch without executing and registering the agreement.
An instrument, which is not registered, is inadmissible as evidence
Stamp Duty is a tax, similar to sales tax and income tax collected by the government, and must be paid in full and on time. A stamp duty paid instrument/document is considered a proper and legal instrument/document. The liability of paying stamp duty is that of the purchaser.
The stamps are required to be purchased in the name of any one of the executors to the Instrument.
•Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom etc.
•Built up Area is the carpet area plus the thickness of outer walls and the balcony.
•Super Built Up Area is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the Super Built-up area. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.
It is important to inspect the property, probably this is the largest single investment you will ever make. You should know all the details of the property and need for any major repairs / modifications before you buy. You can crosscheck the commitment made by builder and actual implementation. A close inspection points out the positive aspects of the property, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.
Few important points to check while inspecting…
•Plumbing systems, drainage, water faucets and sanitary fittings.
•Electrical systems, circuit breakers, wires, capacity of the electric meter, functioning of light fittings
•Roof, walls, ceilings, floors, paint work.
•Foundation, basement and visible structures.
•Doors and windows, latches, locks.
•Structural stability of the building.
Sale Deed also known as conveyance deed, is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. This document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement
This break up is extremely essential as builders can place anywhere from 65% to 85% per cent of the super built area as carpet area. That means, if the price is quoted as 1,000 sq ft super built up area, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the vendor/ builder mention it in the sale deed.
Market value of the property as ascertained by the stamp duty authorities on the basis of a ''Ready Recknor'' which gives the per sq. mtr. value of each village, zone and sub-zone . But the ready recknor is not conclusive and is merely a guideline for the stamp office.
Identify the property you wish to purchase
•Crosscheck of current market rates of property in the vicinity and last known transactions, current market trends.
•Formulate commercial terms.
•Distinguish between negotiable and fixed terms and conditions of the contract, eg. Price, payment schedule, time of completion etc.
•consult a lawyer for legal opinion,
•Check for clear titles of the property. Ask for photocopies of the all deeds of title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property.
•Finalise commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.
•Ascertain outgoings to be for the property i.e. property tax, water and electricity charges, society charges, maintenance charges.
•Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the (a) society (b) the income tax authority (c) Municipal Corporation (d) the competent authority under the Urban Land Ceiling and Regulation Act (e) any other authority.
•If you are looking for loan for property purchase, contact financial institutions and ask for a pre approval letter, many options are available for loans..
•Permanent Account Number of Vendor and Purchaser under Income Tax laws Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration.
•After payment of the entire sale price, take over legal possession of the property and check the receipt of original documents from the Vendor of the property.
•Make sure that property holder’s name is changed in all related records, e.g. society, Electricity Company, municipal corporation, Index II etc.
The following documents are required to be registered compulsorily under the Indian Registration Act, 1908:
(a) Every time the immovable property is sold/purchased, the agreement needs to be registered.
(b)Instrument of gift of immovable property;
(c)Other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in future or in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property.
(d)Non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of creation, declaration, assignment, limitation or extinction of any such right, title or interest;
(e)Lease of immovable property from year to year or for any term exceeding one year or reserving a yearly rent. But the State Government may publish an order in official gazette exempting any district or a part of a district or a lease that does not exceed the term of five years and the annual rent of which does not exceed Rs. 50/- .
(f)Non-testamentary instruments transferring or assigning any decree or order of a court or any award when such decree or order or award purports or operates to create, declare assign, limit or extinguish, whether in future or in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property.
(g)Authorities to adopt a son that is not conferred by a will.
Locality – Proximity to workplace, educational institutions, hospitals, shopping areas, entertainment centres, transportation, pollution levels,Quoted area of the flat i.e. Carpet, Built Up Area and super Built Up Area, Car parking space , Quality of construction, Reputation of the builder or seller, Sufficient water and electric supply, other utilities, Cost components: price, stamp duty, registration charges, transfer fees, maintenance charges, any other payments, Appreciation of the property for resale and rental,Any other distinguishing features or advantages of the property.
If you want to purchase a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout search, etc. Contact an advocate before you purchase a property so that he can advise you.
Before you purchase a flat, you have to have a title and document search conducted by a competent advocate. You cannot do it yourself. You have to use the services of a competent advocate. It is a professional job to be done with professional assistance.
When you are selecting an area to live in, always check for the points below:
1. Power availability Drainage sewerage
2. Garbage disposal system
3. Street lighting
4. Roads & transport links
5. Proximity to market
6. Post office
7. Banks, school
8. Police stations
9. Medical facilities
To see if any person has any objections to the property being purchased.