Advocate
Now-a-days people are taking more interest in investing in real estate and with the expectation of getting a clean and perfect title over the property; they are going to purchase property from real estate developers.
Since huge money is involved in purchasing a property, special care should be taken in order to secure the right title interest over the property because a property dispute takes years to get resolved. But common public is not at all aware of the facts and laws for the real estate.
In order to secure the interest of the purchaser, legislature has implemented The Real Estate (Regulation & Development) Act, 2016 and made rules thereunder which enhanced the security of investors in Real Estate/property.
We feel the pleasure to describe various security measures for purchasing different types of properties.
Purchase of New Flat
While purchasing a new flat from the Developer/Promoter, the investor should verify at the least the following papers, documents for the property and project by any Legal Expert before investing money:
Minimum papers required to purchase a new flat:
✔ Title Deed of the landlord, if the promoter is not the owner;
✔ In case of death of the original owner, legal heirs certificate issued by the Local Authority;
✔ Agreement between the landlord and the promoter, if the promoter is not the landlord;
✔ Whether there is any power-of-attorney has been executed by the landlord in favour of the Developer, if so the copy of the same;
✔ Sanctioned plan for the proposed building;
✔ If the proposed site is outside city jurisdiction, Land Reforms Records of Rights of the land;
✔ Property Tax payment receipts;
✔ Compliance of the provisions of The Real Estate (Regulation & Development) Act, 2016 and made rules thereunder;
✔ Identity of all the concerned parties i.e. the current owners and developers;
Please note these are minimum common requirement. There may be further papers which legal practitioner after perusing these minimum, can suggest.
Purchase of resale property
While purchasing a resale property, the investor should at least verify the following papers:
✔ Mother deed of the seller
✔ Ownership deed of the seller
✔ Copy of the sanctioned building plan
✔ Copy of Completion Certificate
✔ Property tax payment receipts
✔ In case of purchase of resale flat, maintenance payment receipt
✔ In case of any home loan in respect of the property, NOC from the financial institutional institution
✔ Mutation Certificate in the name of the seller
✔ Identity of the Seller
Purchase of Land from Individual Seller
While purchasing a land from individual seller the following minimum points are to keep in mind
✔ Mother deed of the seller
✔ In case of death of the original owner as per deed, the document by virtue of which the present seller became the owner
✔ Record-of-rights in the name of the original owner and in case of his death in the name of the present owner also; If possible the R.S. R-O-R should also be verified;
✔ Khajna receipts
✔ Municipal tax receipts, if any
✔ Site map
✔ Proper identification of the land
Purchase of Land from Developer
While purchasing a Land from Developer seller the following minimum points are to keep in mind
✔ Sanction of Project by the Government Authority
✔ Deed of Purchase by the Developer from the Individual Sellers
✔ Ownership document in the name of the Individual Sellers
✔ Record-of-rights in the name of the original owner and in case of his death in the name of the present owner also; If possible the R.S. R-O-R should also be verified;
✔ Khajna receipts
✔ Municipal tax receipts, if any
✔ Site map with detailed description of boundary of the land
✔ Proper identification of the land
✔ Registration of Agreement for Sale with the Developer if there is any Agreement for sale
Compliance of the provisions of The Real Estate (Regulation & Development) Act, 2016 and made rules thereunder;
Searching of Property Title
This is the most vital part before proceeding for purchase of any property and this has to be done through and under the guidance of any experienced Lawyer. In the first instance, the Lawyer verifies the following points:
✔ Devolution of Title of the property up to the present seller from the Registrar
✔ Devolution of Title of the property up to the present seller from the Land Record
Registration of Deed of Sale
After getting clearance from the Lawyer purchaser can proceed for Registration of Deed of Sale; Steps for Registration:
✔ Drafting of Deed of sale
✔ Valuation of the property by the Registrar
✔ Payment of Stamp Duty
✔ Presentation of the Deed of Sale for Registration
Mutation
After purchase of every property, the same is to be recorded with the Government viz. Corporation, Municipality and the name of the present owner is to be entered in the Land Record maintained by the B. L. & L. R. O.; without mutation, no property transaction is complete. This is must to secure the interest of the present owner.
For mutation of property with Land Reforms Department, you may use this Form.
Conversion of Land
For construction of building, the land must be of Bastu in nature. If in the Land Record, it shows that the land is in other nature, application for conversion of the land to the nature Bastu should be filed and after conversion, construction work can be proceed with;
For conversion of land the Land Reforms Department has specific form. The form may be downloaded from here. A declaration is also required to be submitted in the prescribed format;
Deletion of Barga
In case there is any recorded Barga in respect of the purchased land, Application to the Block Land and Land Reforms Officer should be filed as per the prescribed provision;