Are you planning to buy a house? Have you gone for numerous site visits and seen many properties before finding the house or flat of your dreams? Well Congratulations!!
But now it’s time to get serious. Before buying a house, there are lots of points you need to check to make sure that your purchase is indeed secure. For most people buying a house or an apartment is a substantial investment and so it is important that you read this blog before moving ahead.
Before signing any deal, it is very important for you to know what you are getting into, right? The process of buying a house can be cumbersome in reality, especially, when you are a first-time buyer.
There are several hurdles that a prospective home buyer needs to cross, legal Checklist including having to deal with the brokers, tenancy laws, property condition, and not to mention financing. So, each and every document needs to be double-checked, otherwise even a small error can cause you a big trouble.
1. Title documents
Title documents are one of the most important legal documents required during the property buying process. Basically, it is an evidence of the sale and transfer of the property from one individual to another. For a standalone house or a residential apartment, there will be typically an allotment letter followed by a chain of sale deeds.
It often happens that decades after buying a home, we want to sell our house and may upgrade. At such times, these documents are needed.
2. Original land deed
Original land deed, commonly known as the 7/12 document, gives you the details about a specific piece of land such as its survey number, area, date and other information about the existing owner. This extract is a combination of two forms. While form 7 explains the details regarding land owner and his rights for Legal Checklist, form includes the specifics about the land type and its usage.
3. Encumbrance Certificate
An Encumbrance certificate (EC) ensures that the property in question is free from any legal or financial liability. This document is provided at the sub-registrar’s office in which the property has been registered.
4. Tax receipts and bills
Before making any final payment make sure that the previous owner has cleared all the financial dues such as property tax, electricity bills, water bills etc. and there is no outstanding payment against the property. In order to be more clear, you can do the enquiry in government and municipal offices for assuring that all the taxes and bill are being duly paid.
5. Property agreement
After you settle down all the financial and legal matters with the other party, then you can give an advance payment or write an agreement for the property. Please be sure that the owner does not change his previous commitment related to the cost and also doesn’t sell that property to someone else for more money.
Write an agreement on a stamp paper, stating each and every detail such as actual amount, advance given, time period within which the actual sale will take place, and how to proceed in the situation of any default. It’s better to take the help of a lawyer during this process and both the parties sign the agreement in the presence of two witnesses for Purpose of legal Checklist. Remember, in case of any default made by any of the parties, the legal action can be taken.
6. Registration of the agreement
Once both the parties are done with the property agreement, register it with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act 1908 within four months from the date of execution of the document. You will be needing all the previous deeds, house tax receipts, original title deeds, etc. along with two witnesses for the registration process.