Precaution to be taken while buying property

A buyer should exercise utmost caution while buying property in India, be it for residential or commercial interests. Below is a real estate purchase checklist that includes tips for property buyers, discussion under specific categories.

Proximity afforded :- Whether location of property suits to your daily life schedule. Whether property is close to central business district, entertainment centres, hotels, restaurants, transport hubs, hospitals, market, schools, etc.

Quality of Construction :- Whether structural stability of the building, electrical systems, plumbing systems, drainage, sanitary fitting, roof, walls, ceiling, floors, paint work, foundation, doors and windows is sound or not.

Check the title and interest of seller :-

Thoroughly check and satisfy yourself with the marketability of the property title in terms of whether the owner is the original owner and whether the title deed is original. Obtain legal opinion through an Advocate of repute, who can examine the deeds to establish the ownership of the property by the Seller.
Similarly, if you are buying a resale flat, ask for the Purchase Agreement, which is the Agreement between the current seller and the previous owner and get it scrutinized by an Advocate. He/She will identify whether the seller is truly entitled to sell the property, whether any mortgage exists on the property and if it has been paid off and whether there is any lien on the property. Retain a copy of this document and also check the original.
Avoid engaging in negotiations over a disputed property.
Documentation :-

Ask for all the legal documents in original. Check whether a ‘No Encumbrance Certificate’ has been obtained to ensure that no mortgage exists/ has been existing on the property. Get a ‘No Objection Certificate’ from the Builder / Society.
Check for authentic approvals from government agencies like the land development, planning authority. Ask for original documents and certificates.
Get a full and true disclosure of all outgoings such as municipal and other local taxes, taxes on income, water charges, electrical charges etc.
Take a declaration from the seller on what add-on, if any, he is giving along with the property.
Make sure to include every conceivable clause in the Sales Agreement. A Sale Agreement is the only written evidence of the deal so it should-include everything from payment terms to exact description of the title.
Understand the finer details of the sale contract property to arm yourself with knowledge that shall be beneficial during and after the transaction is complete.
Take care that all the duties that are to be paid on the property like Stamp duty, Registration fees and taxes is included in the Sale Deed / Agreement to sell.
Ask for any other information and documents as may be prescribed under the law.
Post registration activities :-

Subsequent to the registration of the Sale Deed, you should:

Verify that all the taxes, statutory payments in respect of the property including power, water charges are paid till date.
Collect deposits receipts given by power and water supply agencies from the Seller. Without delay, apply to the power / water supply authorities to transfer the meters and deposits in your name.
Ensure that the records of the Local Bodies, AUDA or Municipal Corporation is transferred in your name. The original authorization letter of the Seller to be enclosed with the application of transfer.
Get a good idea of the costs of various components like monthly outgoings, costs of utilities. Do research on the mode of payment and the tenure for which you will be liable to pay taxes