We at goaproperty4u.com are committed to ensure that all our website users are cautioned about the various risks involved in land/property buying in the state of Goa.
It has been observed that unscrupulous land agents have induced buyers into purchasing lands which later the buyers have found that they have been defrauded into buying lands which cannot be developed/ effectively un cleared for the purpose which due to defective title have ended up in legal hassles’.
It has therefore, become all the more important for us to rightly guide our esteemed buyers in making safe investments in properties in the state of Goa.
Annexed as under are the guidelines for the buyer of land/apartments/house properties to check and wisely invest in properties.
A) GUIDELINES FOR PURCHASING LAND/PLOTS:
Technical check points for Land purchase
Whether there is access to the property. If yes, state the width of the access
What is road widening area?
Whether the coastal property lies within the CRZ (No development zone).
i) If near the river, within 100m or not.
ii) If near the sea, within 200m of high tide line.
within 500m of high tide line.
State actual distance from the bank of the river or high tide line of the sea.
Whether the property falls under any of the following zones: as per the Goa Regional Plan/ Outline Development Plan.
Whether the property is original survey number or subdivided plot, if yes, give details of approval subdivision.
What is the status of village in which the said property is studied:
i) VP1 Status:
Whether the property is within 100m of the National Highway. If yes give distance.
Whether the property is within 100m of State Bypass, if yes give the actual distance.
Whether the property is within 50m of a crematorium. If yes, give the actual distance.
Whether the property is within 15m of the high tension line. If yes, give the actual distance.
Whether there is underground water line going through the said property.
Whether there is overhead electrical line passing through the said property, if yes, give the vertical distance.
Whether the said property has a sloping terrain. If yes, give the actual gradients, i.e. contour plan. Whether NOC under section 17 – A of Goa Town and Country Planning Act is taken for cutting or not.
Whether the said property is low lying area, if yes, state the vertical distance below the road level.
Whether the low lying surface of the property is above the level of paddy fields or not. If not, give the distance.
Whether the land in question is paddy field or not as per Form I & XIV of record rights.
Whether the land in question is marked as Private Forest or not as per Sawant Committee Report or Karapurkar Committee Report.
Whether the property in question is affected by No Development Zone Archeological Survey of India. If yes, please state.
Whether the property in question is affected by the Fly Zone and Airport Area.
Whether the land is situated near military camp or strategic defense area.
Whether the land in question is a reclaimed area.
Whether the land in question is affected by mundkar house. In the other rights column of form I & XIV.
Whether the land in question is affected by tenancy rights, in the tenant column of form I & XIV.
Whether there are existing structures in the said property shown. Also, shown on survey plan.
Whether there is house number/house tax receipt of the said house in the said property in the panchayat/Muncipal records.
Whether the property is well demarcated by compound well or there are boundary disputes.
Whether there is electricity/water connection to the existing structures in the said property.
Whether there is any well in the said property.
Whether there are trees in the said property, if yes, state:
i) Mango Tree: _______ Nos.
ii) Banyan Tree: ______ Nos.
iii) Jackfruit Tree: _____ Nos.
iv) Coconut Tree: ______ Nos.
v) Cashew Tree: _______ Nos.
vi) Arecanut Tree: _____ Nos.
Whether the digital survey is carried out as respects to the said property showing actual boundaries, existing structures, drainages, easements contours, access and other features/surroundings.
Whether the land in question is affected by Government Land Acquisition Proceedings/ Government Scheme.
Whether land in question is classified as Eco Sensitive Area by Town and Country Planning Department.
2. Legal check points for Land purchase.
Whether title of the land is clear. i.e. it must contain the following documents:-
a) Ownership Documents.
i) Deed of sale/transfer/convey
ii) Deed of gift.
iii) Deed of family partition.
iv) Deed of Relinquishment of rights.
b) Description of the land from archives.
c) Inscription of the land from archives.
e) Form F and XIV.
f) Cadastral plan form directorate of settlement and land records.
g) Agreement from DSLR land Register.
h) Corresponding certificate that new survey no corresponds with the old cadastral number.
i) Deed of succession if the original owner has expired survived by heirs.
j) Inventory proceedings on the death of the owner who died without making any
k) Matriz Certificate.
l) House no, electricity and water bills in case of any existing structure/house in the said
m) Whether there is any mundkar/tenant for the said property as can be seen on For I and XIV.
n) Whether the property is in exclusive possession of the seller from whom the property is being purchased.
o) Whether the public notice has been published in leading newspapers to invite objections prior to purchase.
p) Whether the property is mutated in the name of the seller.
q) Whether the property is partitioned under Goa land Revenue Code so as to have independent survey number.
r) Whether the property is having conversion sanad.
s) Are there any areas of land Revenue, house tax, electricity, water bills unpaid.
t) Whether the technical check list is ensured to be cleared.
u) Whether there are any TCP Approvals for technical clearons/development permission/ and construction license by panchayat.
v) Whether there are NOC’s from Health Department/Department of Fire Prevention/Goa Pollution Control Board/ Environmental Clearance form GCZMA etc.
It is extremely necessary to check all the documents before buying a property so as to avoid all the problems post buying a property.
3. Checklist of documents before buying residential or commercial property.
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.
•Finalize 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.
• Before registeration of the document ascertain the stamp duties charge by the Government.
4. Registration of documents
You cannot sell nor buy a property without proper registered document(s). A registered document is the authenticity and guarantee of the ownership over the property. Neither should one sell a property without proper registered documents and neither should one purchase a property wherein the seller does not have registered document of his/her ownership in the Property.
Checklist while buying a resale property
1. Check for a duly stamped registry
2. Ensure no dues are accorded to the builder
3. Check for seller’s name in municipal records
4. Confirm seller’s membership in the society (if formed)
5. Ensure there are no pending bills, charges or taxes
6. Make sure that the property is mortgage free
7. Sanctioned Building Plan (to ensure no unauthorized construction)
8. Previous title documents (that chain of title is complete)
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.
5.Inspect the property before buying it
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.
It is extremely necessary that the property you are buying with a builder should have all the necessary permissions of the project so as to ease you to get loans as well as avoid legal hassles arising due to public objections and also from other concerned authorities.
6.How to verify project approvals documents?
The documents needed to be verified for checking project approvals.
Confirm approved plans,
Previous title documents (that chain of title is complete)
Make sure that the property is mortgage free (nil encumbrance certificate)
Other approvals such as environmental clearances are important
NOC from utility companies. (P.W.D, electricity, etc.)
Title Search must be carried out at the Sub Registrar’s office to verify title and ascertain encumbrances, if any.
7.Strategy in dealing with the banks while purchasing a property?
Give yourself comfortable time. Do not hurry your purchase or loan in any case. Shopping around for a home loan will help you to get the best financing deal. Shopping, comparing, seeking clarification and negotiating with banks may save you thousands of rupees.
Obtain information from several banks
Home loans are available from mainly two types of lenders--commercial banks and housing finance companies. Different lenders may quote you different rates of interest and other terms and conditions, so you should contact several lenders to make sure you’re getting the best value for money.
Find out how much of a down payment you are required to pay, and find out all the costs involved in the loan (including processing fees, administrative charges and prepayment charges levied by banks). Knowing just the amount of the EMI or the interest rate is not good enough. Similarly, ask for information on loan amount, loan term, and type of loan (fixed or floating) so that you can compare the information and take an informed decision.
The following is some important information that you will require.
Ask your lender about its current home loan interest rates and whether the rate is fixed or floating. Remember that when interest rates in the economy go up so does the floating rates and hence the monthly re-payment.
If the rate quoted is a floating rate, ask how your rate and loan payment will vary, including the extent to which your loan payment will be reduced when rates go down by a certain percentage. Ask your lender to what index your floating home loan is referenced / linked and the periodicity of updation of that index. Also ask your bank whether the index is internal or external and how and where it is published.
Ask about the loan’s annual percentage rates (APR). The APR takes into account not only the interest rate but also fees and certain other charges that you may be required to pay, expressed as a yearly rate. Banks are obliged to reveal the APR if requested for by the customer.
ii) Reset Clause
Check the reset clause, especially in the case of fixed interest rate loan as the rates will not be fixed throughout the tenure of the loan.
iii) Spread/Mark up
Check if the margin in the case of the floating rate is fixed or variable. The rate of interest you have to pay will vary accordingly.
A home loan often requires payment of various fees, such as loan origination or processing charges, administrative charges, documentation, late payment, changing the loan tenure, switching to different loan package during the loan tenure, restructuring of loan, changing from fixed to floating interest rate loan and vice versa, legal fee, technical inspection fee, recurring annual service fee, document retrieval charges and pre-payment charges, if you want to prepay the loan. Every lender should be able to give you an estimate of its fees. Many of these fees are negotiable / can be waived also.
Ask what each fee includes. Sometimes several components are lumped into one fee. Ask for an explanation of any fee you do not understand. Also, remember that most of these fees are perhaps negotiable! Do negotiate with your bank before agreeing to a particular fee. See how the all inclusive rate compares with the all inclusive rates offered by other banks. While planning your finances, don't forget to include the costs of stamp duty and registration.
v) Down Payments / Margin
Some lenders require 20/30 percent of the home’s purchase price as a down payment from you. However, many lenders also offer loans that require less than 20/30 percent down payment, sometimes as little as 5 percent .Ask about the lender’s requirements for a down payment and also negotiate with him to reduce the down payments.
b) Obtain the best deal
Once you know what each bank has to offer in terms of rates, fees and down payments, negotiate for the best deal. Ask the lender to write down all the costs associated with the loan. Then ask if the bank will waive or reduce one or more of its fees or agree to a lower rate. Do make sure that the bank is not agreeing to lower one fee while raising another or to lower the rate while raising the fees. Ask for clarification in case you do not understand any particular term. All banks are obliged to explain the most important terms and conditions of the home loan in detail.
Once you are satisfied with the terms you have negotiated, please do obtain a written offer letter from the lender and keep a copy with you. Read the offer letter carefully before signing.
8.What all documents should you have at the time of possession?
All original chain of agreements form part of the title documents and must be obtained by the buyer.
Do remember to obtain the original registration receipts and the original stamp duty receipts.
A letter of possession duly witnessed by two witnesses confirming the physical handover of the
Occupancy certificate from the local bodies, such as municipality, panchayat etc.
In case of a Society, the original share certificate together with all transfer forms duly executed.
Proof of payment of all dues such as maintenance, electricity, phone, water, property taxes up to the date of handing over possession.
A limited power of attorney from the Seller(s) authorizing the buyer(s) to sign all documents and applications etc. pertaining to the said premises.
An NOC from the Society or other body confirming that they have no objection to the transfer
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