Select Location

I am booking a property in Gurgaon, What are the documents and agreements I should check before purchasing the property

0 likes
1 answers
General Legal
Posted on 18-Mar-17
Advocate Ankita
Answered on 13-Apr-17
Hi. Steps for Legal Due Diligence before Purchasing of Property: Intended use of the property: - Buyers must have an understanding of zoning and land use issues. Upon identifying a property, the potential buyer should determine that a propertys intended use is lawful under the law of land. If not, whether such property can be used for intended purposes with necessary approvals/permits. Title of the property- The title of the property forms the foundation of any contract. According to the Indian Contract Act 1872 and Transfer of Property Act, 1882, no seller can pass on to the purchaser a better title than what he already possesses. The title of the seller must be clear and free from any encumbrance. Before buying a property, it is foremost requirement to verify the title of the seller and marketability of property. Sale by holder of power of attorney:- If the sale documents are being executed by a person holding power of attorney on behalf of the owner, the said power of attorney should be scrutinized closely. The person must not only possess the power to sell property, the power of attorney should also be validly executed before the appropriate authority. An agreement holder who also has a power of attorney to sell the land and/or building is normally a developer. Alternatively, a person may have paid the entire consideration to the owner and hold`s on to the property for some time to sell it at a later date for a profit. Such power of attorney must be properly stamped and registered. It should also not be revoked. Check the original documents:- Beyond the physical condition of the property, there are a multitude of intangibles that have to be taken into account when evaluating a site for acquisition. Every document concerning the land, building and its operation must be examined. This includes leases (with any and all extensions and modifications), notes and mortgages, (whether the buyers are assuming them or not), title policy, certificate of occupancy, tax history, licenses (in some jurisdictions), parking lot contracts, etc. Inspect the all the original documents of the seller and scrutinize them carefully before buying the property. A public notice may be placed in newspapers calling for claims in respect of the property being purchased. Claims can even come afterwards; public notice helps in proving that you purchased the property bona fide and in good faith. In case the original documents are not available or have been lost, the certified true copy may be considered for verification of title with due affidavit from the seller. Inspect the plans:- If the building is under construction or constructed, then inspect the plans to check whether the concerned authority has sanctioned them. Payment of stamp duty:- Always verify documents of title to check payment of stamp duty. If the ownership of Property has changed hands more than once, examine all the documents for payment of stamp duty by the predecessors. Minors Property: In cases where a minor owns the property, prior approval of the court is required to enable the minors father/natural guardian to sell the property. In the absence of such permission, the sale could be void able at the option of the minor on attaining majority. Check the minimum tenure of land if taken on lease:- If the property that is being purchased is a building built on a land which is given on lease, lease rent would have to be paid for the land owners. If the lease is to expire shortly, it is possible that the lease rent may increase substantially. Hence, the terms of the lease must be verified before buying the building. Other precautions that need to be taken: Check the occupation certificate: Completion/Occupation certificate should be inspected to ensure that the building has been built legally, especially in case of new buildings. Check the Carpet/Built-up/Super built up/Salable area: Areas can be verified by taking actual measurement of the property, if the same is ready. Other precautions that need to be taken: Proper Execution of Agreement to sell and Sale Deed needs to be carried out. Payment of proper stamp duty under Stamp Act, 1899-Registration of these deeds should also be ensured. The following is a handy checklist but not all of these documents or factors may be required. 1.Title Deed 2.Flow of title to 30 years 3.N.A. Permission from the Collector/SDO 4.N.A. Permission file 5.Non-agricultural assessment receipt 6.7/12- Adhikar Abhilekh Patrak issued by Talathi 7.Other Documents of ownership like Sanad 8.Mutation Register Extracts 9.Akarband/Tippani/Podi Extracts 10.Surveys/Boundary Map 11.Village Map 12.Nil Tenancy Certificate 13.Confirmation from the competent authority that there is no land acquisition proceedings 14.Layout Plan Approval by the competent authority 15.Property tax Certificate issued by the Revenue authority 16.Latest Tax Paid Receipts 17.Search Report for the last 30 years 18.Validity of AOS/Development agreement/ the Power of Attorney 19.Zonal Regulation Map 20.Disputed cases 21.Civil Court cases 22.Sale permission Wakf/trust/Charity commissioner 23.Collectors permission for collectors land/SC and ST land 24.Legal heir ship certificate 25.Death Certificate/Succession Certificate & its trail 26.Wills, Probate and Letters of Administration 27.Collectors permission under BTAL 1948 28.Road Lining/Highway/Railway setback 29.Water availability 30.Height restrictions of AAI/Funnel zone/FAC 31.CDP/Development Plan 32.Land user under CDP 33.Change of Land User 34.Water and other tax from municipal authorities 35.Any other matter. Additionally, you may find the following links useful to ascertain the answer to your query. http://content.magicbricks.com/property-news/delhi-ncr-real-estate-news/checklist-for-legal-due-diligence-before-buying-property/84657.html http://economictimes.indiatimes.com/slideshows/real-estate/list-of-precautions-you-should-take-before-purchasing-property/slideshow/17922389.cms http://www.nirrtigo.com/UserDocuments/Due_Diligence
0 Comments
You need to be logged in to comment

Related questions

Can a criminal case be decided if no defence witnesses were allowed to give their witness and prosecution witnesses were also not allowed to be cross examined. Also the petitioner was not allowed to be represented by any defence counsel.

Need to appeal against judgement
0 likes
0 answers
General Legal
Posted on 08-Jan-24

What if I received a summon from court but on that day, that court in on leave?

I received a challan summon in March. But on that particular I went to court and found that the court was on leave. So, I again received a summon in April. Same thing happened again as court was on leave again. Now I bai received any summon after that. Will there be any issue for me?
0 likes
0 answers
General Legal
Posted on 04-Jun-22

Can Article 21 be used against the patriarchal and traumatic morality of Indian educational institutions?

I'm a college student. I want to know whether Article 21 can be used against the patriarchal and traumatic morality of Indian educational institutions.
0 likes
0 answers
General Legal
Posted on 04-Jun-22
Find the best lawyers/advocates and book legal services.