Home buying guidance
Here are a few things that you should check and verify before buying a property
- Documents relevant to the Land / Project / Building / Apartment
- Documents relating to the Premises
- Stamp Duty and Registration
Here are a few things you should check for
Conveyance Deed or Sale Deed:
This is a deed document. By this, the title of property is 'conveyed' by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. This document will help you ascertain whether the flat in an apartment complex which you are buying, is on land belonging to the society/ builder/development authority in which the property is located.
This document issued by the concerned land authorities contains details like survey numbers, area, and date - from which current owner is registered as owner.
This document issued by the Sub Registrar's office mentions the names of the sellers & purchasers of the property, for which the document is registered.
An advocate issues the Title Certificate after conducting a search on the title of the property intended for purchase.
The title certificate would state if the property is unencumbered and has a clear marketable title.
Usually, a search on the title of the property is taken for a period of the last 30 years. It is mandatory for the developer to annex a copy of these reports in the "Agreement for Sale" with the intended purchaser of the apartment.These documents would state whether the title to the property is clear, marketable and free from encumbrance. It would state clearly whether or not there is any existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely.
Non-Agricultural Land Permission:
If the land you are planning to buy is a paddy field or agricultural land and if you plant to use it for residential/commercial/industrial purpose, the agricultural land has to be converted to non-agricultural land and a Non Agriculture Order has to be obtained from the Collector of the District where the property is located.
Along with this, one needs to take the latest receipts evidencing the payment of Non Agriculture Tax. In cases where the conversion from agricultural use to non-agriculture use is not done within the stipulated period then, there should be an order from the concerned authority extending the period.
37(I) Clearance [No objection certificate under section 269 (3) of the Income Tax Act, 1961]:
If any immovable property in cities specified by the Appropriate Authority is transacted above a certain value, it needs to obtain a No Objection Certificate from the Appropriate Authority as defined under the Income Tax Act. A transaction would be incomplete and invalid if this clearance is not obtained.
A statement in Form no. 37(I) needs to be jointly submitted by the seller and purchaser.
The appropriate authority would issue a No Objection Certificate, if it feels that the property has not been undervalued. If the appropriate authority feels that the property is undervalued, then it would do pre-emptive purchase of this property and sell it subsequently through an auction/tender.