Property Plus
Coimbatore
Purchasing a plot: the crucial factors
|
The list given below will be handy for those planning to purchase a plot
|
Right procedure: Check title for defects while purchasing land
Buying a plot, however big or small it might be, needs to be done with careful consideration. A small piece of land can become a big nightmare for a buyer, if the basic details are not scrutinised properly. Whether it is for investment option or to build a house, a buyer cannot afford to ignore the basic points before purchase.
Four factors
The list given below will be ‘a handy note’ for those planning to purchase to a plot.
The process is
1. Check the title of the land.
2. Get the approvals from the statutory bodies.
3. Complete the documentation of purchase of the land.
4. Handle post-registration issues.
Let us examine each one separately…
Check the title of the land
Find out whether the seller is individual/partnership/HUF/JSC.
Legal opinion
Thoroughly check and satisfy yourself with the marketability of the property title in terms of whether the owner is the original owner and whether the title deed is original.
Obtain legal opinion through an advocate of repute, who can examine the deeds to establish the ownership of the property by the seller.
Similarly, if you are buying a resale plot, ask for the purchase agreement, which is the agreement between the current seller and the previous owner and get it scrutinised by an advocate.
He/she will identify whether the seller is truly entitled to sell the property, whether any mortgage exists on the property and if it has been paid off and whether there is any lien on the property. Retain a copy of this document and also check the original.
Get approval from the statutory bodies
The nature of land, whether residential/commercial/ industrial/agricultural, has to be ascertained.
All land in India is considered as revenue land or agricultural land.
A ‘conversion order’ is the base for any land to become any one of the above categories. his order has to be issued by government authorities. This has to be verified.
Ask for all the legal documents in original. Check whether a ‘No Encumbrance Certificate’ has been obtained to ensure that no mortgage exists/has been existing on the property.
‘No Objection Certificate’
Get a ‘No Objection Certificate’ from the builder/society.
Check for authentic approvals from government agencies such as land development, planning authority and Income Tax Department.
Ask for original documents and certificates.
Get a full and true disclosure of all outgoings such as municipal and other local taxes, taxes on income, water charges, electrical charges etc.
Take a declaration from the seller on what add-on, if any, he is giving along with the property.
Complete the documentation
Make sure to include every conceivable clause in the Sale Agreement.
A Sale Agreement is the only written evidence of the deal, so it should include everything from payment terms to exact description of the title.
Understand the finer details of the sale contract properly to arm yourself with knowledge that shall be beneficial during and after the transaction is complete.
Take care that all the duties that are to be paid on the property like stamp duty, registration fees and taxes are included in the Sale Deed/Agreement to Sell.
Ask for any other information and documents as may be prescribed under the law.
Post-registration activities
Subsequent to the registration of sale deed, you should:
Verify that all the taxes, statutory payments in respect of the property including power, water charges are paid till date.
Collect deposit receipts given by power and water supply agencies from the seller.
Without delay, apply to the power/water supply authorities to transfer the meters and deposits in your name.
Ensure that the ‘Khata’ in the records of the local bodies, gram panchayats or the City Corporation is transferred in your name.
The original authorisation letter of the seller and a copy of the new ‘khata’ have to be enclosed with the application of transfer. (A Khata is a document that includes complete details of the land or property in question for the payment of tax).
In Karnataka, it is usually referred to as ‘khata’ itself.
In Tamil Nadu, it is called “patta”; in Kerala, it is called “Thanda.”
Get a good idea of the costs of various components like monthly outgoings, costs of utilities.
Do research on the mode of payment and the tenure for which you will be liable to pay taxes. It is useful to obtain Encumbrance Certificates at least once a year, and make it a routine exercise.
R BALAJI
(The author is CEO, Propmart, an end-to-end property solutions provider)
Printer friendly
page
Send this article to Friends by
E-Mail
Property Plus
Coimbatore
|
