7 easy steps to buy property in india with clear title and no encumbrances

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This document highlights the necessary documents/certificates one needs to verify before buying Property in India. It is always advisable to go through this 7 point check-list in order to avoid future trouble when investing in Indian real estate.

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7 easy steps to buy property in india with clear title and no encumbrances

  1. 1. Documents to check before buying Property in IndiaAggregated and Prepared by: www.nirrtigo.comGreen Realtech Projects Pvt. LtdReal Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page7 easy steps to buy property in India with cleartitle and no encumbrances.Buying a piece of real estate is a lifelong commitment wherein one has to pay EMIs forseveral years. On one hand, we have plethora of real estate project launches (AIPL ThePeaceful Homes, Experion The Heartsong, etc.) in India and on another there is alwaysthis fear of what if the project is delayed, cancelled, or there are any unseen issuesarising in the middle of the project lifecycle.Therefore, doing your homework and preparing the necessary documents is critical inbuying a property – this will ensure a clear title.It is always advisable to have the documents checked by a legal expert. However, aquick tick mark on the following checklist can help you in buying the property withclear title.
  2. 2. Documents to check before buying Property in IndiaAggregated and Prepared by: www.nirrtigo.comGreen Realtech Projects Pvt. LtdReal Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research PageHere is a list of 7 most important documents that you may check before buying aproperty in India:1. Land titles/construction permits/approvals from authorities2. Title clearance certificate3. Society clearance and membership4. Details of payment of property tax and other charges, bills, etc.5. Sale agreement6. Stamp duty and registration7. Taking possession of the flatThe details for each of the above documents are described below:1. Land titles/ Construction permits/ Approvals from authorities Check for ownership of land in favor of the builder (Approved License Number) Conveyance of property in favor of the society Urban Land Ceiling and Regulation Act clearance certificate, if applicable Power of Attorney executed by the landlord in favor of the developer in case it isjoint development between landlord and developer Permission to use land for non agricultural purpose Original plan approved by municipal authorities (total area, number of floors,etc.) Commencement Certificate issued by municipal authorities permitting thedeveloper to begin construction Occupation Certificate issued by authorities certifying that the building iscomplete and fit for occupation.2. Title clearance certificateObtain a title clearance certificate from the advocate certifying that the propertyintended for purchase is unencumbered and has a clear marketable title.
  3. 3. Documents to check before buying Property in IndiaAggregated and Prepared by: www.nirrtigo.comGreen Realtech Projects Pvt. LtdReal Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page3. Society clearance and membership, if buying property in a society (for completedprojects) No objection from society for transfer and sale of flat Payment of necessary transfer charges to the society Obtain the share certificate from society duly transferred in the name of thebuyer.4. Details of payment of property tax and other charges (for completed projects)Ensure that the seller was paying due property tax and other bills of the localdevelopment/municipal authority up to the date of registration of the sold property.You can get the certified copies stating the payment of property tax, water tax, watercharges and electricity charges from the sub-registrars offices in your city.5. Sale AgreementWhile signing sale agreement/deed and taking possession, ensure the following: The serial number of flat/floor is clearly indicated in the agreement. The carpet area/built-up area and purchase consideration of property is clearlystated. The floor plan of the specified property is annexed with the agreement. Ensure that all the amenities (type of construction, floorings, doors, windows,sanitary, water supply, electrical fittings, etc.) are clearly specified. The sale amount is clearly mentioned. The agreement is duly stamped and signed and lays down the paymentschedule. The seller should provide the original stamped receipts and previoussale/conveyance deed in case of resale properties.
  4. 4. Documents to check before buying Property in IndiaAggregated and Prepared by: www.nirrtigo.comGreen Realtech Projects Pvt. LtdReal Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page6. Stamp duty and registration The stamp duty is payable on the agreement value of the property or the marketvalue, whichever is higher. The agreement is to be registered with the sub-registrar under the provisions ofthe Indian Registration Act within a period of four months from the date of itsexecution. Check for stamp duty and registration charges applicable in different statesacross India.7. Taking possession of the flat Ensure that you receive vacant and peaceful possession of the flat on the datespecified in the agreement. Check if there is any provision in the agreement for refund of the amounts dueby the builder/seller in case the seller fails to give possession of the property bythe stipulated date or mutually agreed extended date. Inspect the flat with the amenities stated in the agreement and ensure that thereis running supply of electricity and water in the premises.
  5. 5. Documents to check before buying Property in IndiaAggregated and Prepared by: www.nirrtigo.comGreen Realtech Projects Pvt. LtdReal Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research PageAbout NirrtiGoNirrtiGo is owned and founded by Green Realtech Projects Pvt. Ltd.NirrtiGo is an online real estate platform to find, discuss, review, rate,and track real estate & property in India.

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