Buyers Guide

When a buyer has found the property that is the right fit for his needs and budget, there are several legal complexity that must be dealt with to complete the investment. It is highly suggested that the buyer instruct a good lawyer while investing in property.

Another factor while choosing a property is whether the price is commensurate with existing market values. The information can be obtained from the market (brokers, residents of the neighborhood/complex, registrar's office, etc)

• There are no encumbrances on the property
• Property is not locked in litigation
• Inherited property has a probated will
• Utilities
• Property Tax
• No Objection Certificate (NOCs)

Property location is one of the main and price factor of high rate of the property. The convenient location from all necessity area such as station, school, and market can be major factor to boost the property price rate. Whereas the property from far way or remote area would be cheaper compare to prime area.

Buyers need to understand the different factors advantage and disadvantages of each individual property. If the property is Independent House vs. Apartment in a Co-operative Housing Society: Setting aside advantages related to independence and privacy, some of the most important factors to consider while making this decision in India are maintenance costs and responsibilities, A housing society may provide the facilities such as swimming pools, health clubs, and gardens, and arrangements for parking, security, power backup, etc. New construction or Old: Sale price is generally determined on the basis of built-up area i.e. the measurement of the residential unit at floor measurement, including projections and balconies, and is measured from the external perimeter of the walls, whereas the carpet area i.e. the total area of a premises measured from the internal walls, is the area that is actually usable. In new constructions, the difference between the two might be substantial, and a buyer can end up paying a hefty sum for a smaller apartment, whereas in old constructions this difference is far lower.

• Stamp duty
• Registration fees
• Legal fees
• Brokerage fees
• Society transfer charges (in buildings with societies)
• Cost of renovation/improving the property
• Cost of furnishing the property
• Future house tax/property tax payments
• Maintenance fees

If the properties are newly constructed, then there are chances that the builder/developer may not be fully transparent at the time of booking with regards to the final cost of the property. The final price should typically be a sum of the base price, external development charges (EDC), infrastructure development charges (IDC), preferential location charges (PLC), car parking charges, club membership if applicable, electricity and water connection charges, maintenance charges service and any other applicable taxes, etc.

There are now strict checks when you apply for a mortgage. Lenders will check that you can afford the mortgage and also 'stress test' your ability to make your payments if interest rates were to rise or if your circumstances changed, such as possible redundancy or having children. As part of the mortgage application process you will need to show the lender evidence of any outgoings, and prove your income.

• Mortgage arrangement and valuation fees
• Stamp Duty (or Land and Buildings Transaction Tax in Scotland)
• Solicitor's fee
• Survey cost
• Removal costs
• Initial furnishing and decorating costs
• Buildings insurance
• Estimate your overall buying and moving costs

It is always good option to use your major saving part for buying house/flat or apartment. Even small saving would become a great financial support. Saving 10% to 20% of the cost of the home you would like, so if you want to buy a home costing price.

Before one can purchase land or a house, it is important to confirm that the land does not have any legal dues. Check the Encumbrance certificate issued by the sub register office where the deed has been registered, cleaning the said land does not have any legal dues and/ or complaints.

The tolerence plan is a detailed plan of the property which is drawn by a licensed surveyor. All the measurements and details in it accurate in terms of length, width, borders etc. this plan is necessary for some specific areas only.

Many property-owners opt for a bank loan by pledging their property. So check if the seller has paid the entire amount due before you buy that property. Once the loan has been settled in full, the bank issues them “Release certificate”. It is wise to ask for the same as this release certificate is necessary for you to take any loans in the future.

Property taxes are charged on property and are paid to the government or the municipality. So it is essential for you to make necessary enquiries at government and municipal offices to ensure all taxes have been paid to date. You can ask for the latest tax receipt from the owner as well. This enables you to check whether any notices or requisitions are issued on the said property or id any taxes on the property are due. The correct way of checking property tax receipts, is to check for two columns in it. One is for the owner’s name (so verify that first) and the other is for the tax payer. Sometimes, the tax receipt is not in the owner possession. In such cases, you should contact the village office with the survey number of the land confirm the original owner’s credentials.

It is prudential for the buyer to measure the land before registering any property, ensuring that the measurements and borders of the land are perfectly accurate. You should get it done by an authorized surveyor to avoid future conflicts. You should also take a surveys from the survey department and ensure the accuracy of your possession.

In some cases, the property may be under the possession of multiple owners. In such a case, obtaining a “No Objection Certificate” or “ Release certificate” from other owners is imperative.

An NRI also has the right to well his property in India. For this he usually provides a third party with the “Power of Attorney” thereby giving full rights to the party for selling the property on his behalf. The most important thing here is to ensure that the “Power of Attorney” is witnessed and is duly signed by an officer of the Indian Embassy. A power of Attorney signed by a notary public, has no legal support in such cases.

After one has sorted out all arrangements (financial or otherwise) between him and the seller, it’s now time for the advance payments and an agreement between the two parties. The agreement is done on Rs. 50/- stamp paper. It includes the final, actual amount, the advance payment, the time limit to pay all due, details about the installments and an measurements and details in it are accurate in terms of length, width, borders etc. this plan is necessary for some specific areas only indication of the time of the actual sales. It also should include the steps needed to cover any loss if one of the parties (buyer or seller) defaults. This insures the buyer from a fraudulent seller who may otherwise defer the cost at any point after finalization of the amount and may also sell the same property to another party. This agreement can be drawn up by an expert lawyer and is to be signed by both the parties in the presence of two witnesses. This agreement deters either party from defaulting as the defaulter can be dragged to court for it.

Any property sale that is made without a sale deed duly stamped and registered, is deemed illegal in the court of law. Hence it is a must to register the land / property at the Sub-Register or the SDM (Sub District Magistrates) of your area after a sale has been made and all other documents have been signed and exchanged.

This certificate is issued when the building is ready for occupation, after the water sewage and electrical connections are completed. An original copy of the Occupation Certificate by the Municipal Corporation of the locality is mandatory. It is vital in the sense that this document confirms the possession to the buyer legally; otherwise a mere handing over of the possession will stand null and void in case of any dispute.

It is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property.

The valuation process evaluates the market value of the property. This evaluation depends on different factors such as type of property, quality of construction, its location, the local infrastructure available, and maintenance.

The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.

It is a tax, same as sales tax and income tax collected by the government, Stamp Duty must be paid in full and on time. The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.

A document is registered with a sub-registrar appointed by the State Government, under the Indian Registration Act, 1908.

Blue print of the plan from the builder

• Commencement certificate
• Completion certificate
• Permission for Non agriculture use of land.
• If land is originally agricultural, permission from revenue authority is needed. F 7/12
• extract in case of land property
• Previous sale deeds in case of resale
• Builder's No objection certificate

Yes, the Power of Attorney Draft can be signed and attested by the Indian Consulate/ Indian Embassy/or local notary.