With increasing urbanization and rising incomes, the real estate sector is expanding rapidly. However, this growth has also led to a rise in property-related frauds. Instances of disputed properties being sold without full disclosure to buyers are not uncommon. According to the National Crime Records Bureau, over 7,000 cases related to land or property disputes were registered in the country in 2022. Therefore, if you’re planning to buy a home, it’s crucial to ensure that the property is free from disputes and encumbrances. Here are three essential steps to help you make an informed decision.
Verify Property Ownership and Legal Status
The first step in ensuring a safe property purchase is to obtain complete information about the property’s ownership. Verify whether there are any legal disputes concerning the land or property. Additionally, check if there are any outstanding taxes on the property. Let’s delve into each aspect in detail.
Get Property Documents Checked by a Lawyer
While banks conduct due diligence when you apply for a home loan, it is not always foolproof. Therefore, it is advisable to have the property documents reviewed by a lawyer. Key documents to examine include the Sale Deed, Title Deed, Encumbrance Certificate, and Mutation records. These documents will help verify the ownership and legal status of the property.
Understanding Title Deed and Encumbrance Certificate
When purchasing property, the Title Deed and Encumbrance Certificate are critical documents. The Title Deed, including documents like the lease deed and sale deed, establishes ownership of the property. It indicates who the current and previous owners are. The Encumbrance Certificate, on the other hand, provides information about any legal or financial liabilities, such as loans, against the property.
RERA Registration and Approvals
If you’re buying an under-construction flat from a builder, ensure the project is registered with the Real Estate Regulatory Authority (RERA). Check for the building plan and layout approval, and ensure the project has a No Objection Certificate (NoC) from the local authority. For land purchases, verify the details with the local municipal corporation or relevant authority to ensure the plot is free from disputes.
Check for Unpaid Taxes and Dues
For resale properties, in addition to verifying the Title Deed, check for any unpaid taxes or utility bills. This includes house tax, electricity, and water bills. If the previous owner has outstanding dues, you may be liable to pay them after purchasing the property. Ensuring that all bills are cleared before the purchase can save you from future hassles.
