When buying a property, it is important to check whether the property is legal. People use multiple criteria to find whether the property being purchased is right or not. Listed below are some of the methods that can be used to check legality of a property.
To meet the growing demand for houses in today's growing population, a lot of houses are coming up. Thus, it has become very important to check legality of properties.
Approval of Bank/Financial Institutions
One way to check the reputation of builder is to get the property approved by bank. Banks allow one to take home loan for properties that are legally clear. When applying for a home loan, it is good to look for banks that have a tie-up with the project. This reduces the chance of the developer defaulting.
Even if you are able to self fund the property, it is better to take a home loan for a small portion of the overall fund required in order to ensure that the property and its papers are in order.
Key Approvals and Licenses
Make sure that the builder has all the necessary approvals and licenses from the government. In the recent past, a reputed builder was not allowed to continue construction, as it failed to get government clearance.
It is important to check that all clearances are in place before purchasing a property. This includes tax receipts, encumbrance certificates, etc. Check the reasn due to which the land has been issued to the developer and make sure that the purchased house is as per the approved layout.
Visit the site in person
It is good to visit the proeprty regularly to find the progress in person. You can also talk to people who have possession of property and/or neighbours living in that area. It is better to not completely rely on inputs/advice given by property consultants or realty brokers.
Always verify the original papers
It is important to look through all the papers before signing them. If a builder denies to provide the original paper, it is better to drop the deal.
You should verify the title deed to check whether the seller has rights to sell. Get the encumbrance certificate from the seller and verify the land papers from the local authority. Also check the layout plan approval. When buying a property, get no dues certificate from the bank where the property was pledged by the seller.
Make sure you have a good lawyer
It is good to have an experienced lawyer who can verify the authencity of the documents. He can also guide you regarding the terms and conditions mentioned in the sale document. The lawyer would also make handling a dispute easier.