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LEGAL CHAT

Keep track of facts before buying a property

Purchasing a property is a major decision. It has an impact on many areas. It may relate to a place where you may choose to live.

There can be other considerations. While a lot of things can be done for purchase of property, there are certain things which, in my view, are not to be done.

The first major thing relates to the purchase of the property itself. Many people make decisions of purchase on the spur of the moment.

They may be impelled to decide on purchase because of a neighbour or because a close relative has made a purchase. Purchase of properties without a plan may land one in trouble.

At times, it may turn out that a decision was made to purchase a particular property. Thereafter, the deal may have fallen through.

This is taken as a major issue affecting the prestige of the party concerned and a decision is hastily taken to purchase another property in place of the first one.

Meanwhile, costs may have gone up and there may be change in the circumstances.

However, a decision is taken impulsively to acquire the said property without realising the cost or other implications.

This is a typical situation where a person may be led to a bad decision . It is better to think through a deal rather than make a hasty decision based on certain developments.

One may also think that based on one’s income, it is possible to obtain a certain amount of loan.

However, such a person may not have the tax papers to support the income. The person may not qualify in the Lender’s estimate for other reasons for being eligible for the quantum of loan planned.

The Lender may also have other reasons to downsize or decline the loan. Many persons actually get into a situation, when they make commitments based on anticipation of loan being provided to them.

It may be possible that certain persons who are essentially marketing the loans may have made certain promises for obtaining the loans based on information given to them. However, every lender has specific guidelines for disbursal of loans.

It may so happen that you may not be able to obtain the loan in spite of the fact that contrary assurances were given and even the processing fee has been collected.

Please note that you do not have a right to compel the lender to disburse the loan and any action undertaken in anticipation of imminent disbursal has its own risks and consequences.

If you are dependant on the loan for the transaction, it is better to wait till actual disbursal happens .

There are certain people who make purchases based on relationships. They feel that they know the person concerned personally and there is no reason to suspect the integrity of the seller and therefore no risk in purchasing the property owned by such a person. While trust factor is vital , the fact that the integrity of the seller is not in doubt is not sufficient to arrive at a conclusion that the title of the property is clear and marketable. Indeed, these are two different things. The integrity of the seller is an assuring but not a determinant factor as such a person may not himself or herself be aware of the defects in the property.

Further, it is quite common that persons do not preserve records properly. These types of decisions may affect your future dealings with the property and quite often, you may not be in a position to go back to the seller after the purchase is made. It is better to be thorough and ensure that documents are in order prior to making the decision of purchase.

Owing to a desire to cut costs or otherwise, many people attempt to take the self-help route in purchasing a property. That is, they peruse all the documents themselves and make a decision whether to purchase the property or otherwise. They take painstaking efforts to grasp all the finer points relating to the purchase. However, most of these people are not disposed to taking advice from others and even make drafts of Sale Deeds or other deeds of conveyance based on prior documents, model forms, etc. Whatever be the reason, this kind of approach is riddled with problems. While being involved in the process of purchase is good, getting into technical and problematic areas without prior experience or knowledge can be unsafe. It is better to take advice from others and seek professional help .

There are many other matters in which one can get trapped owing to ignorance, haste and other factors. Do not take emotional decisions.

If you have a relationship at stake with a person, it is advisable not to engage such persons in your property deals as it may ultimately affect your relationship as well as the transaction. Try to gather facts rather than having beliefs with regard to property issues.

In the event that clarifications are required, seek out and be transparent rather than keeping them to heart. When there is a choice, take a considered decision. If you are not capable of directly dealing in these areas, seek help. It is better to have a plan for purchase of a property. The plan should have safety measures and alternatives. A decision should also fulfil your basic objective of purchase.

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