How To Check If Your Property Is Legally Verified?

Finding a property that is free from all sorts of legal tussles is quite an achievement. With the momentous growth of the real estate sector, the number of disputes over land have also gone up. Behind many a project delay, fights over land ownership have been a prime reason. Though the real estate law, which is in various stages of implementation across the county, is going to make the situation more favourable for property buyers, here is a do-it-yourself checklist to know whether the property you are shortlisting is worth investing or not:

Check for the title papers

A property should have a clear title, without any dispute. If buying a new property, the title of the land should be with the construction company. If buying a resale one, study the papers wisely or visit the property lawyer to check the authenticity of papers.

Ask for bank approvals

If you are getting your home financed from the bank, your half work is already done. Before approving your loan, banks evaluate the property. For an apartment project, several banks offer on-site offers which clearly indicates that the property is legally verified and have all approvals in place. But, do check the clauses before signing the loan agreement with the bank.

Encumbrance certificate

An encumbrance certificate is a document which implies a property is legally free from any mortgage or pending loan. It also lists the name of the previous owner of the property. This is a very important document when buying a resale property to know whether the previous owner had mortgaged the property and if all the dues have been paid.

Tally the approved plan with actual site

If you are buying in apartment project, make sure you get to see the copy of the approved map from the builder which is passed by the local authority. This can give you the fair idea about the area and the construction spree if it illegally encroaches.

Check out property tax slips

If buying a resale property, ask for property tax slips from the previous owner. This will give you an insight on two factors ― whether the colony or the area you are buying in is regularised or illegal and if the property is duly registered and there are no dues pending with the municipal authority.

Project has a registered society

Every apartment project should have a registered society along with a resident welfare association. This is itself a legal process and also gives an idea about the legality of the project and the property you are buying.

There are lot many things you need to do before you buy a property. You might spend all your savings or get a loan from banks. So, it is important to take these points seriously and make a decision with a peace of mind.