by Ms. Meera Siva
Buying a house is a
long-cherished dream for many. But often it ends up being a nightmare due to
unscrupulous sellers, lax checking by authorities and questionable property
records.
In order to protect themselves from financial loss, legal
battles and stress, buyers must arm themselves with basic legal & procedural knowledge.
Chennai based
Advocate Mr. Shyam Sunder, who has helped banks like State Bank of India
(SBI) detect fraud in property documents to the tune of about Rs. 55 crore, has
some suggestions.
Check Approved
Building Plan..
There are a few red
flags you can spot quickly. If you are buying a flat (Apartment), check the
approved building plan drawings to know the ratio of building area to land area
ratio, known as Floor Space Index (FSI).
FSI is normally 1.5
in Tamil Nadu. You can calculate the undivided share of land (UDS) and check if
the builder / promoter is offering you this.
When you are buying a 1,000 square feet apartment, for
instance, your builder / promoter may reduce it to, say, 450 square feet
instead of 666 square feet (1,000 divide by 1.5).
Pointing out that
that builders or promoter may allot higher UDS for apartments they retain or
/ may construct unauthorised flats in
the premises, Mr. Shyam Sunder advises
that you check that the total number of flats constructed tallies with what is
mentioned in the approval permit. Further, he says, ensure that the builder /
promoter does not have terrace rights on the constructed building.
Say you are buying a
plot of land which is part of a panchayat-approved layout: be aware that only
the Local Planning Authority (LPA) and Department of Town and Country Planning
(DTCP) have the authority to accord layout sanctions.
You must know which
authority has approval powers for your locality regarding project size and use
(residential or commercial), and what the rules are. For instance a panchayat
can provide approvals for only up to 4,000 sq.ft for residential (G+2 floors
with a maximum of four dwellings) and 2,000 sq. ft for commercial (G+1 floor)
buildings.
Ensuring that the
documents your seller shows are genuine is important and, in many cases, can be
done with the help of online sources. Shyam Sunder gives the instance of a
seller who provided his father’s death certificate along with legal heir and
other house-related documents. A simple check of online records of births and
deaths dating all the way back to 1930 for registrations in Chennai revealed
that the death certificate was fake.
Many property-related
documents such as village pattas and building permits are available online in
Tamil Nadu. Detailed land use classification for all areas falling within CMDA
limits can be verified on their website. Many identiy proof documents such as
PAN card and voter ID can also be verified online. There are also other ways to
verify if the document is forged. Sale deed numbers start at number one every
January.
So, based on the average number of transactions that
happen in a month, you can check for issues.
For example, you
should be suspicious of a January dated sale deed with a high number, or one in
December with a very low number. Of course, you need to compare the certified
copy of a title deed document from the sub-registrar’s office against the
original to check if it matches.
Beware of POA
Sales done through
Power of Attorney (POA) tend to be rife with issues, says Sunder. In many
instances the POA holder sells the property after the death of the owner
(Principal) who granted the POA. The legal heirs may claim rights to the
property and the law usually declares that the sale invalid.
You must ensure that
the POA has not been revoked, that it clearly indicates the holder is
authorised to sell the property, and that the Principal is alive.
If the POA is from a builder, ensure that all the
partners in the partnership firm have signed.
In Tamil Nadu, POA details of a sale are recorded in the
Encumbrance Certificate (EC), if the POA is registered after October 1, 2010.
Src: Hindu
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