Real Estate can be the least risky investment in relation to its price and value fluctuation. However, from legal point of view, you should be very cautious regarding a real estate investment. Several times, we have read about buyers being deceived by builders or agents. Sometimes it is regarding the title of the land, sometimes about construction delays and sometimes it is about being involved in illegal practices related to home building.
To save yourself from facing litigations over the property you purchased, here are a few legal points you need to consider before booking a home:
Khata and Title Deed- The title of the land or property you are buying is the most important thing to check from legal point of view. All information related to the title deed of the property can be procured from the sub registrar’s office. It contains complete information about the first owner of the property and the consequent changes in the title. Another important document supporting the title deed is the khata. It contains the name of the present owner which can be verified from municipal records. Khata and title deed both hold utmost importance in getting electricity connection, water connection, etc.
Bank Approvals- A simpler way to check if your property has cleared all its legal obligations is to make sure about the bank approvals. Before granting home loan, banks verify every single data relating to the title of the property and other legal dues. Only then do they grant loan. Hence it is a simple way to testify if the concerned property is clear of all legal dues.
Project Plan and Layout- There are certain rules and regulations set by the local authorities regarding the construction of new buildings. The authorities have laid down these rules and the builders have to follow the same while constructing their project. So you can be sure that the property is being constructed in adherence with these laws by comparing the sanctioned plans with the actual layout of the project.
Encumbrance Certificate- To make sure that the property is free of all legal dues and mortgages, you should seek the encumbrance certificate or a No Objection Certificate (NOC) from the society where the property is situated.
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