Legal Checkpoints: Flat Purchase Checklist When Buying a Property

Table of Contents

1. Introduction
2. Flat Purchase Checklist Before Buying Flat
3. Title and Ownership of The Property
4. Verification of The Seller
5. Prepping and Securing Construction Approvals
6. Estimating Rental and Reselling Price
7. Power of Attorney (POA) Explained
8. Useful Tips for the flat buyers
9. Documents checklist for legal purpose
10. Conclusion

Introduction

In India, while buying a flat one has to keep in mind several legal aspects as it will be a major financial investment. A lot of money can be lost if the buyer makes a blunder in the transaction. The fact of the matter is, buying a house entails a lot more than simply deciding on a price to pay, all the paperwork has to be completed and it is not as simple as it sounds. The focus of this article revolves around the flat purchase checklist which a prospective homebuyer should follow before the final purchase is made.

Flat Purchase Checklist Before Buying a Flat

Title and Ownership of The Property

• Title Documents: For example, government orders for grant or succession certificate, sale deed, gift deed, will deeds, division deed and many more demonstrate how title have evolved since the beginning till its ultimate vesting in the seller.
• Nature of Title: Three titles are there including Leasehold, freehold, and development rights.
• Development Rights: If the seller claims development rights, make sure the development agreement and power of attorney have been executed by the owners who are signing on behalf of the seller.
• Proper Registration: All title papers must be noted and accurately registered with the relevant office of the sub-registrar of assurances.
• Khata Registration: Take care of Khata registration under the name of the seller.
• Filing a suit: Ensure that there are no legal suits pending or have been against the property.
• Original Title Documents: Take the original title documents from the vendor.

Seller Identity Verification

While checking independently the property documents, it has to be confirmed that if the seller happens to be an individual, the residential address, country citizenship and if any permissions are required from the concerned department for the transaction to go through.

• Identifying Owners: In case there are more than one owners of the property then list each owner.
• Corporate Sellers: Should the seller be a corporation, trust, partnership firm, society, etc., the entity’s documents must be obtained to establish its ability to own and transfer the property and also that the person who signs and registers the sale deed is authorized to do so.
• Minors or Incompetents: In the case of the property being held by a minor or a person lacking capacity, the required orders of the appropriate court for the sale and the appointment of a guardian should be obtained.

Approval for Construction

The buyer must avail of the building plan and building layout as approved by the local municipal authority while buying a flat or any plot of land with building in situ. He must also examine any approvals secured from the government and statutory bodies for water supply, sewer and drainage facilities, electric supply, environmental clearance, fire safety clearance, etc.

Analyzing Expected Rental and Resale Price

Estimate the rental and resale prices in order to be better placed in real estate investment. At this time, evaluate also the prospects for living, renting or selling after a long time. Look for location, connectivity and availability of schools, hospitals and shopping and estimate returns.

Power Of Attorney (POA)

Power of attorney (POA) is giving another person authorization to perform tasks on behalf of the actual owner but the person acts as though they are the legal owner. These documents should be checked to identify what the POA holder can do if you are buying a property when there is a POA in place.

Quick Thoughts for Flat Buyers

• Conduct Thorough Investigations: Never agree to sign any documents before you first do your own due diligence.

1. Check RERA ID: So even if the person has been recommended highly, it is always advised to check the RERA ID and registration of the agency or the developer.
2. Cash Deals: Always refuse to offer cash for backdoor tax incentives.
3. Genuine Transactions: Never accept direct and indirect requests to purchase or sell a property on behalf of other individual.
4. Complete the Checklist: It is recommended to use this flat purchase checklist so you accurately follow the procedures of purchasing a flat before making a purchase decision.

Checklist of all the legal documents required for the purchase of property

It is necessary to conduct all the legal due diligence and documentation to check for all measures before investing in real estate. Below is a list of the documents that are required in order to acquire real estate property:

1. Encumbrance Certificate: Confirm that the property is free and clear of liens. Conduct encumbrance inquiries with the sub registrar’s office for mortgages, liens, and encumbrance of a third party’s estate. Use caution with mortgaged properties as such. An Encumbrance Certificate (EC) traces the history of the property. To request an EC, submit a duplicate sale deed in the house document department.
2. Sale Deed: A sale deed, which is attached to the Registration Act, is among the most important documents that the seller as well as the buyer should possess while entering into the transaction for the sale and purchase of the property. Except for immovable property, if no sale deed is registered for a transaction, it is considered illegal.

• Hablamos de la Madre Deed, que junto al Hablamos de la Madre Deed, que junto al Power of Attorney, que. Antes de comprar el piso sería bueno verificar en qué manos cae la vivienda actualmente y en su caso, establecer biografía en relación con la propiedad sobre la sede vacante la venta que saben. De esta forma la venta tendrá otorgada la propiedad. A los eigeneas se les presenta las circunstancias en las que el documento tiene su valor, es decir, el montardo o caso está secuenciado aranzado.
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• Khata Certificate/Extract: Khata extracts are necessary for both property rights transfer and registration of another property in the owner’s name.
• Property Tax Receipts: It is also practicable to obtain the last three years’ tax receipts just to confirm that there were no outstanding taxes due from the seller with respect to the property. If you are buying a resale property, ensure you get the relevant property tax receipts from the seller.
• RERA Certificate: The Real Estate Regulatory Authority (“RERA”) certificate is proof of registration of a property, a project or a property agent with the respective state-level RERA body. This certificate holds all the relevant information of the project together with the developer and the property in question. The RERA certificate and its contents need to be examined for the sake of the buyers’ rights.

Conclusion

To sum up, so as to not misallocate resources and set priorities on specified goals as regards all steps involved in the purchase, the process of buying a flat is quite involved and therefore needs adequate documentation. The simple fact of having the necessary legal documents at hand combined with this flat purchase checklist will keep your investment safe and allow you to choose wisely. Always remember, a buyer that has done their homework is the winner in any transaction!

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