Buying a Ready to Move Property : 8 Major Documents Make Sure You Scrutinise...

by Sunainaa Chadha

Many prospective house buyers have been unnerved by the ongoing stand-off at Mumbai’s posh Campa Cola Society.

For, in a city where space is a premium, the Campa Cola case should serve as a wake-up call for house buyers. 

So, if you are thinking of buying a ready-to-move in property or /  a flat from the secondary market, make sure you scrutinise all the necessary documents or / else your dream house could turn out to be an expensive disaster.

It’s best to hire legal experts &  professionals before you take a decision.

Here is a list of documents that are extremely important to check.

1.Title deed..

The first step is to check the title deed of the plot of land which you are going to buy. Confirm whether the land is in the name of the seller and that the full right to sell the land lies with only him and no other person.

You also need to check whether the seller has permitted any entry / access to others through this plot of land and whether any other fact has been suppressed / or left undisclosed by the owner of the land.

Along with the title deed, the buyer can also demand to see the previous deeds of the land available with the seller. The title deed will include the sale deed, deed of conveyance, the development agreement and the Power of Attorney (PoA), if the developer is the seller.

Residents of Campa Cola housing colony celebrate with crackers after the Supreme Court issued orders to stay the demolition of their houses in Mumbai on recently.

2. Approved plan..

Make sure the builder has got the approval for building the flat. If he has started the constructions then make sure that the approval building layout is same and there is no deviation in the house or flats. If there is deviation then it could create future problems.

3. Encumbrance certificate (EC)..

Before buying plot of land or house / flat, it is important to confirm that the land does not have any legal dues. To ensure that the property you are going to buy is not mortgaged for loan, you must obtain the encumbrance certificate (EC) from the sub-registrar office where the deed has been registered, stating that the said land does not have any legal dues and complaints.

 4. Ensure property is free from debt & liabilities..

Ensure you are buying a property (plot of land or house / flat ) which is free from debt & all taxes are paid in time. If seller of property has taken any loan or / advance on the property, ensure they are paid off and ask them for documents or / copies to show that property is debt free.

5. Tax receipt and Bills..

 

Property taxes which are due to the government or /  municipality are a first charge on the property and, therefore, enquiries must be made in government and municipal offices to ascertain whether all taxes have been paid up to date.

The owner should also possess the latest tax paid receipts, which you may inspect.

6. Intimation of disapproval (IOD)..

This is a set of instruction given by respective authorities for builders to construct the building.

Normally, it is valid for a period of one year and if the building is not constructed within one year’s time, Intimation of disapproval (IOD) has to be reissued.

7. Sales Certificate..

 Get the sales certificate between the builder & yourself.

Check whether the seller obtained a loan for that property, accordingly a paragraph in sale deed needs to be added saying that the seller is responsible to clear all the dues.

Mention the flat number and plot number in South / East / West / North / Complete plot of Land area Length / Breadth & Diagonals also in the Sale deed.

8.Completion and occupation certificate..

 

Once the construction is complete, builder / promoter will get completion & occupation certificates from the municipal authorities, which indicate that the building has adhered to municipal requirements.

Building completion certificate ensures whether the building complies with the rules of building height, distance from road, and whether it is built according to approved plans & is ready for habitation while the occupation certificate is issued when the building is ready for occupation after water, sewage & electrical connections are complete.

“An original copy of the occupation certificate by the civic body of the locality is mandatory. It is vital in the sense that this document confirms the possession to the buyer legally; otherwise a mere handing over of the possession will stand null and void, in case a dispute arises,” said Mr. Dilip Shah, a senior counsellor & analyst for redevelopment of housing societies and society laws.

Src: http://www.firstpost.com

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