Friday, 12 December 2014

Property Wise - You must get the documentation right

Here is an easy tick list for customers to consult before buying a plot.

The first document that you sign is an agreement to sell. The second document is the sale deed, which you get registered in your name by paying stamp duty to the government.
Once you have done this, the title gets transferred to your name. The sale deed is the most important document. At the time of taking possession of the property, the owner should also give you a possession letter. If the property was involved in litigation, you should get papers to the effect that the litigation has been settled. All taxes, penalties, bills, etc, on the plot must have been paid up to date. Get proof to this effect. If you are buying from a developer, then the allotment letter is an important document.

Do the due Diligence:
If you are buying a plot within a developer's project, make sure that he has all the necessary approvals, such as the license to develop that piece of land. Make sure that the land can be registered in your name. You must also find out if the land is leasehold or freehold.

Sometimes, when you are buying the plot from an authority, there could be a clause which says that you must complete construction on it within a certain time period. If you are buying the plot for investment, such a clause sets a limit on the time period by which you must exit this investment.

The plot shouldn't be attached by a court order. Consult a lawyer to make sure that it is not encumbered legally. Any adverse order by a court on the property may affect you down the line.

Quick Byte: Be specially wary of this risk if the property is being offered to you at a low price.

Source: Times Property, Dec 06, 2014

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