Read the offer documents carefully before making a property investment

Investment in real estate is always a smart choice. It is because you buy a property, keeping in mind certain factors like, the location, size, and definitely, the return on investment. No matter what your purpose is; whether you are looking to buy a permanent home or office, planning to rent it out, or sell it to make profits, the underlined point is—you seek profit out of ownership.

This is exact reason why, we discuss about being careful and vigilant, both, when you decide to buy a property. You don’t want to get caught in a legal hassle, for a property purchased by you through legitimate means and channels. And, you don’t want any surprises later, considering the high monetary value of a property. But still, it can happen to you. 

Common mistakes while buying a property:

·         Overlooking the actual price of the property to be purchased. There are overhead expenses, which every buyer should be aware of, so that there is no money surprises later. This overhead cost can be, the stamp duty, registration, car parking, advance maintenance, membership facilities, etc, which is no easy business as this expense can run in lakh

·         Not checking facts on transfer of ownership of property, if there are multiple proprietors involved. Also, checking on legal information related to the land (on which the property is built or under construction). It can be a case of disputed land, such as no government certification

·         Mistaking super-built area as the actual size of the flat, which may include the stairs, passage, etc

·         Check on the structure of the building. Many flats are now ready for redevelopment. Buyers should know when the flat was constructed, know if the construction is legal, and verify the seller is authentic. In case of resale, many of us are not aware if the seller has undisputed rights to sell the property, and that, it is not under any family dispute 

Know what should be done

A smart property investor will have all papers in order, and will even go a step ahead, to read all the documents carefully, to be well-aware and cautious. Before signing a paper, make sure to go through the subject (content) very carefully, so that you don’t end up buying what you did not expect. There should be no surprises later.  

Required documents to be obtained from the Builder/Vendor/Reseller

For flat buyers, it is important to have these documents and analyse each point carefully for a safe buy.

1)   Blue print of the plan from the builder

2)   Commencement certificate

3)   Completion certificate

4)   Previous sale deeds in case of resale

5)   Builder's No objection certificate [not relevant for land]

In case of land property

4) Permission for Non agriculture use of land (from a relevant authority)
5) 7/12 extract in case of land property

Legal help is the correct approach

Even if your Builder has appointed a lawyer to draft the legal agreement, regarding the property sale/transfer, it is likely (his) approach is influenced. Don’t allow the builder/owner a chance to give a lop-sided view on the final agreement. Instead, hire your own lawyer. It is a matter of exchanging huge money, and spending some extra-cash to make a secure transaction should not disturb you.

A lawyer will ensure all your drafted papers (attached to a sale agreement) are in top order. Legal professional help will ensure you have a detailed approach (in your interest) before you buy a property. It will also help you understand the technicalities of a sale agreement. It is all about a smart investment, a factor which is no longer limited to buying a house superficially.