“No matter how many screws you put in it, it remains the same – self help’ – Bruce Lee.
Real Estate Documents Verification: Why Is It So Important
Owning a piece of real estate is probably one of the most important and challenging events in your entire life. So, the entire procedure of searching for that dream home, organizing funds, performing legal checks, taking over the house, and throwing a sweaty housewarming party at last is tiring but quite rewarding as well. After all this hassle, you are shifting to a house that you can call your own, thus alleviating the recurrent tiresome processes of renting and incessantly shifting houses.
After you’ve identified the correct area to settle in, the next task is to take care of the legal verification of documents. Your fantasy can rapidly become a headache if there are any ambiguities or alterations in the property records. No matter how impressive or alluring the house is, you need to run appropriate checks to confirm that everything is in order.
Benefits of Property Documents Verification
A property deal usually involves so much money with such legal verification it’s offered free of any issue and most importantly your money is also secured.
- Proper records can assist you in obtaining a house loan from a bank or NBFC.
- You make sure that the seller is able to convey the property completely in your name.
- You are assured that no other individuals will assert rights over the property.
- You will not encounter any obstacles when attempting to sell or otherwise transfer ownership of the property later on.
Consulting a professional for assistance is perfectly acceptable, however, it is advisable for you to do some research and learn to scrutinize the documents independently. No attorney can be interested in your property to the extent that you are! In this article, we outline the critical information you need to consider if you decide to assist yourself.
What can be the Best way to Validate Property Documents?
Identify the Seller
It’s pertinent to introduce the buyer or seller first before providing close scrutiny. It is essential to secure that person’s identity with specifics such as PAN, Aadhaar card, etc. It is worthwhile to prepare and investigate the neighborhood. Or, if it is a developer, understand the man’s past records Thank him for the compliments. Do look for any mentions in the newspapers or other media. Contact the reviewers who are clients as well.
Property Title Deeds
This is the prime document that has to be looked and checked. Together with the former, you should also verify if the seller has all the rights to transfer the property and most importantly if he/she is the property owner. Check the previous dealings and how many people have owned the property as of now. There is a possibility of using her cross examination with a local municipal office. Request a copy of the Encumbrance Certificate (EC) to ensure that the property has no outstanding mortgage loan or other burdens. The EC can be obtained by making an application at the Sub-registrar’s office.
Property Tax Receipts
Every property owner is bound by statute to render tax every year on his land and house property. Again, through checking the property tax particulars, you can once again verify the ownership of the property and no statutory dues are outstanding against the said property. The tax must be paid periodically and maintained.
Layout & Building Approvals
While purchasing land it is very important to make sure that the layout has been approved by the capable authority. If you own an apartment or a property which is already built, make sure there is no major deviation from what has been approved. It should be ensured that the conversion of land use for residential purpose occurs first, prior to construction. An occupancy certificate (OC) is another important document to have for builder flats and apartments for sale. It ensures that the said building is adequate to be used for dwelling purposes. The respective OC is handed over to the customer after the developer submits multiple documents to the local municipal corporation. The builder must also secure all necessary no objection certificates (NOCs) from the government.
Sale Deed
This document facilitates the sale as it transfers ownership from the seller to the buyer. A proper sale deed minimizes misunderstanding and covering the interests of both parties. It has to mention the personal details of both the seller and the buyer. The particulars relating to the property, such as the location, land survey number, property dimension, amount involved etc. kept straightforward. The provisions of the agreement together with the transaction date are provided. An explicit clause in the agreement also states that the purchaser shall be indemnified against any future title dispute concerning the property.
Possession Certificate
This is a document issued by the developer stating the details of payment and the date on which the possession of the property shall be handed over to the buyer.
Note: This fact has been highlighted by the honorable Supreme Court of India itself in their judgment dated November 22, 2011, stating that it is quite worthless and invalid in the eyes of law to purchase a property through a GPA. Thus, the transfer of property should have been done through a registered sale deed for purposes of legal effectiveness.
Procedure on the Verification of Documents
Understanding and analyzing certain property documents with all the legal influxes can be quite difficult to the typical person. You would probably be hearing a few jargon for the first time. Consistency and good temper would be recommended to those aspiring not to work with an expert. Investigate all the pertinent materials available online. Most of the material is usually heavily condensed so as to suit the layman. Well prepared lists containing the required documents together with their requisite formats completes half the work. If you find yourself in some trouble, feel free to browse through any of the well-known online legal aid services and see what they offer. Some of them may even offer the first appointment or basic services at no cost. There will be the need to pay a small fee for every extra service availed. In any case, you end up saving a lot more as compared to an instance where you visit a lawyer in his office.
Conclusion
It is critical that you cross all the t’s and dot all the i’s, or else you won’t remember what was checked. The Building & Other Construction Workers (BOCW) Act and the Real Estate (Regulation and Development) Blank have also been issued. Acquiring the property sale deed will allow you to additionally register your verification idol. These are the most basic documents without which your verification idol has no value, and these documents are still a long way from wanting to let you live permanently in the property.
Remember that you’d rather be safe than be sorry. If something is unclear make sure that you do not jump to conclusions. Remember that a house is a huge financial and an emotional commitment as well. One needs to do proper checks of the property records before taking that big step.
Author – Dream Location
As the most trusted real estate brand in the nation, we at Dream Location strive to create a smooth, positive and clear medium for prospective clients seeking for anything and everything related to the home purchase.
For more information about Dream Location and to search your dream property, please visit Dream Location on Google Map. Contact us today to know more about the best real estate deals in Delhi and North India; we will connect you to the right property investment.