Introduction
Buying a house is a significant investment and a life-changing decision. It’s crucial to conduct thorough legal checks before finalizing a property purchase in India. This article aims to provide you with a comprehensive guide on the legal checks you should perform before buying a house in India. By understanding these essential checks, you can ensure a smooth and secure property transaction.
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Legal Checks Before You Buy a House in India
1. Verify the Property Title
One of the primary legal checks you must conduct is verifying the property title. Ensure that the seller has a clear and marketable title to the property. You can do this by obtaining the original title deed and conducting a thorough search at the Sub-Registrar’s Office. This step will help you confirm if the property is free from any encumbrances or legal disputes.
2. Check for Encumbrances
Apart from verifying the property title, it is crucial to check for any encumbrances. These may include mortgages, liens, or other legal claims against the property. Obtain an Encumbrance Certificate from the Sub-Registrar’s Office to ensure there are no financial or legal liabilities attached to the property.
3. Ensure Approved Building Plans
Before purchasing a house, ensure that the construction has been carried out as per the approved building plans. Request the seller to provide you with the necessary documents, including the sanctioned building plan, occupancy certificate, and completion certificate. These documents ensure that the property has been constructed legally and adheres to the necessary regulations.
4. Verify Land Use and Conversion
If you are considering purchasing land for construction, it is essential to verify the land use and conversion status. The land should be designated for residential use, and the necessary conversions should be in place. Check the zoning regulations and obtain the necessary approvals from the local planning authorities.
5. Confirm Property Boundaries
To avoid future boundary disputes, it is advisable to physically verify the property boundaries. Engage a licensed surveyor to conduct a survey and demarcate the boundaries accurately. This step will ensure that you are aware of the exact area and extent of the property you are purchasing.
6. Review Joint Development Agreements
In case you are purchasing a property that is part of a joint development project, review the joint development agreement carefully. Understand the terms and conditions, rights and obligations, and the share of the property you will receive. Seek legal advice if required to ensure that the agreement is fair and protects your interests.
7. Check for Pending Litigations
Perform a background check on the property to identify any pending litigations or legal disputes. This can be done by conducting searches at the local courts or engaging a lawyer to perform a due diligence check. It is crucial to ensure that the property is not involved in any legal proceedings that may affect your ownership or possession rights.
8. Validate Occupancy Rights
If you are purchasing a property in a housing society or cooperative society, verify the occupancy rights. Ensure that the seller has the necessary share certificates or allotment letters from the society. Additionally, check the society’s by-laws and rules to understand the rights and obligations of the members.
9. Check for Environmental Clearances
If the property is located in an ecologically sensitive area or near protected zones, check for the necessary environmental clearances. Ensure that the property’s construction and development have received the required approvals from the environmental authorities. This step is crucial to ensure compliance with environmental regulations.
10. Assess Property Tax and Dues
Before finalizing the purchase, ascertain the property tax status and any outstanding dues. Request the seller to provide tax receipts and clearance certificates from the local municipal corporation. This will help you avoid inheriting any tax liabilities associated with the property.
FAQs (Frequently Asked Questions)
FAQ 1: Can I buy a house in India if I am an NRI (Non-Resident Indian)?
Yes, NRIs can purchase property in India, subject to certain conditions and restrictions. They can invest in residential and commercial properties, except for agricultural land, plantation property, or farmhouses. NRIs must comply with the regulations set by the Reserve Bank of India (RBI) and FEMA (Foreign Exchange Management Act).
FAQ 2: What is the importance of an Encumbrance Certificate?
An Encumbrance Certificate is crucial as it helps determine if a property has any pending legal or financial liabilities. It provides a record of all transactions related to the property, such as mortgages, liens, or court orders. By obtaining an Encumbrance Certificate, you can ensure that the property is free from any encumbrances.
FAQ 3: Do I need to hire a lawyer for legal checks before buying a house?
While it is not mandatory to hire a lawyer, it is highly recommended to seek legal advice. A lawyer specialized in property law can assist you in conducting due diligence, verifying documents, and ensuring a smooth and secure property transaction. Their expertise will help protect your interests and avoid potential legal complications.
FAQ 4: Can I rely solely on the information provided by the seller?
While sellers are obligated to disclose relevant information, it is essential to independently verify the details provided. Relying solely on the seller’s information may lead to unforeseen legal or financial issues. Conducting your own legal checks and due diligence is crucial to safeguard your investment and secure your ownership rights.
FAQ 5: What should I do if I discover a legal dispute regarding the property?
If you discover a legal dispute or pending litigation regarding the property, it is advisable to seek legal counsel. Consult an experienced lawyer who specializes in property law to understand the implications and potential risks. They can guide you on the best course of action to protect your interests.
FAQ 6: How long does the legal check process usually take?
The duration of the legal check process can vary depending on the complexity of the property and the availability of the required documents. On average, it can take anywhere from a few weeks to a few months. It is essential to allocate sufficient time for conducting thorough legal checks to ensure a smooth and secure property purchase.
Conclusion
Before buying a house in India, it is crucial to conduct comprehensive legal checks to safeguard your investment and ensure a hassle-free transaction. By verifying the property title, checking for encumbrances, reviewing relevant documents, and seeking legal advice, you can mitigate potential risks and make an informed decision. Remember to allocate adequate time for the legal check process and seek professional assistance when needed. Happy house hunting! For Property Due Diligence Contact Fastrack Legal Solutions + 91 7697671219
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