10 KEY THINGS TO BE VERIFIED BEFORE BUYING A PROPERTY
In India, the resale property market is playing as active a role as the new property market, because of price factors and guaranteed possession of the property. However, buying a resale home is an expensive affair and a small mistake or oversight can lead to a huge loss. Before investing our hard-earned money into resale housing, let us understand the ten most important things that need to be verified while buying a resale property.
- ORIGINAL TITLE DOCUMENT
Verify original title documents in the name of the present owner starting from the sale deed to any deed which belongs to the property. It is important to verify the mother documents of the property for the last 30 years to ascertain the correct flow of title. Cross-verify whether the Patta, Chitta, and Adangal documents are in the name of the present owner.
- ENCUMBRANCE CERTIFICATE
After getting the complete set of documents about the property, apply for an encumbrance certificate from the sub-registrars office.
The encumbrance certificate contains the details of all the transactions that happened to date for a particular property. Encumbrance means the monetary and legal liabilities associated with a property. It confirms whether the owner has the property title in his name and also reflects the litigation attached to the property. It is advisable to cross-verify EC for the last 40 to 50 years.
- LEGAL OPINION
It is always advisable to get a legal opinion from a property lawyer. The property lawyer will clarify whether there is any case pending against the property in any court. He will check the authenticity of the property documents such as the sale deed, mother deed, patta, Chitta, layout or building plan, tax receipts, etc. The property lawyer will also help clarify whether there will be any future acquisitions for government projects.
- NO DUE CERTIFICATES FROM BANKS
Before buying verify whether the property seller has taken a loan to acquire the property. If he has taken a loan, be sure that the property owner settled the bank loan and received no dues certificate from the concerned bank. Buy the property only after checking the no-dues certificate from the concerned bank.
- CANCELLATION OF MODT or RECEIPTS
When a bank lends funds for a property purchase it will execute a mortgage deed in favor of the bank. It’s a declaration that the borrower has deposited the title documents with the bank, willingly to secure finance. It is common to find that many sellers after paying back the loan, forgot to cancel the mortgage deed. Before buying a property make sure that the mortgage deed has been canceled and the property is ready for conveyance.
- APPROVAL COPY
Before buying a property, verify whether the land and building are approved by the concerned authorities
- Local body
- TAX-PAID RECEIPTS AND BILLS
The buyer needs to verify whether the property seller has paid all the government taxes and bills up to date without any pending arrears. Ensure he has paid all the taxes such as property tax. Water tax, drainage tax, electricity bills, and deposits are up to date. The buyer should ask the seller for the latest original tax-paid receipts and bills to check the details of the owner’s name, and the date of payment on the receipts which will be required at the time of name transfer. If the buyer fails to verify the above taxes and bills he may end up paying the arrears at the time of name transfer because of ignorance.
- ASSESS THE QUALITY OF THE BUILDING
A buyer needs to assess the construction quality and age of the property before buying. It helps the buyer not to get trapped by the lower prices of a resale property. It is always advisable to hire a licensed property valuer to inspect the property and get certification about the quality of the building.
- REVENUE RECORDS
Most buyers verify the title of the property in the registrar’s office but tend to miss the revenue records. It is equally important to verify the revenue records. Revenue records consist of Patta, Chitta, and Adangal. Buyer can verify the revenue records at the tahsildar office while verifying and cross-checking whether the revenue taxes have been paid up to date and the current owner’s name.
- NO DUE CERTIFICATE FROM THE ASSOCIATION
If the resale property is under any society or association, it is a must for a buyer to get a NOC from the association stating that there are no pending dues to the society or association in terms of maintenance costs or annual fees. If not, the buyer will end up paying the dues of the current property owner. The NOC is more important in deals related to Co-operative Housing Societies(CHS) .
From the above, we come to know the key things to be verified before buying a property. There are so many factors to be considered so it is easy to switch to buying a new property. We StepsStone move one step ahead and come up with futuristic homes called ANANS everything is accessible through Remote and Alexa enabled which is located in the IT hub of Chennai – Perungudi.