Purchasing a property – be it a house, or an apartment, or a plot of land – is an investment that will last a lifetime. Following are thefactors that you mustkeep in mind when buying property in India.
This is the document that gives proof of ownership. While purchasing a property, check if it belongs to the seller. If the title deed isn’t in the name of the seller, then legally, the seller doesn’t have the right to sell the property.
Also, make sure that once you have purchased the property, the seller changes the title deed to reflect your ownership of the property.
2. Understand the Difference between Carpet Area and Built-up Area
Generally, a property’s built-up area is the entire area in the campus, including common amenities like elevator space, shafts, stairs, the thickness of walls, etc. This is different from the carpet area, which is the actual area in your home, within the walls of the flat.
Sometimes, the carpet area may be thirty per cent lesser than the built-up area. So, make sure to check out the carpet area and the built-up area to avoid disappointments later.
3. Available Financing
Due to high property prices, most homebuyers today depend on home loans to purchase their dream property. Before choosing a builder, you must check the reputation of the builder and his/her company as the lenders generally provide finance facility for properties of such credible builders.
This will not only ensure that you would be able to avail loan for the property that you wish to buy but also your property asset is viable and sound in the long run.
4. Builder-Buyer Agreement
You book the property that you have selected by paying the builder a token amount. On receipt of the token amount, the builder issues an allotment letter.
Following the allotment letter, you enter a tripartite agreement withthe builder, lender, and yourself for the remaining amount you must pay. You must read this document carefully before you sign it. If you have any doubts, however basic they may be, make sure to get it checked at this point to avoid any discrepancies later.
5. Hire a Property Lawyer
When you purchase a home, there are several legal documents that you must understand and go through like the no objection certificate, completion/occupancy certificate, tax receipt, encumbrance certificate, mother deed, power of attorney, mutation document, land record, etc.
All these documents have legal clauses, and it is prudent to have a clear understanding ofthe same. You can hire a property lawyer and have him/her check all the documents, so that you can proceed with the deal in a judicial manner.