Planning to invest in real estate? Well done! You have made a great decision. However, there are few things that you need to recheck and consider legally before you finally seal the deal. While on one hand, the financial aspect comprises an important part of the investment, the legal side is also to be considered. It is true that real estate is a safe place to invest. But every investment has its own risks. To overlook those risks is never advisable. So, to avoid any kind of legal hazards, keep the following points in mind.
A title deed is a document which legitimises the ownership of a property. This is the first step document that you must check. With the title deed no person can sell the property. The title deed has to clear off all shortcomings and only then it is legally approved for sale. Always ask for the physical copy of the title deed and make sure to converse with the real owner of the property. Visit the sub-registrar’s office to have a detailed knowledge about the property owner and the property in concern.
Mortgage approval is a must for any real estate investment. Having a pre-approved mortgage will make it easier for you to get a loan. However it is to be noted that getting a mortgage approved does not mean that you are guaranteed to get a loan. It only means that you are now eligible for loan. Additionally, with a pre-approved loan it gets easier for the seller to trust you with the property.
Like the title deed document confirms if the property has any disputes or shortcomings, the Encumbrance certificate verifies if the land on which the property has been developed is free from all problems or not. To avail an Encumbrance certificate, one needs to contact the Sub-registrar office and get to know about the legal history of the land. Also known as the Title Evidence certificate, an Encumbrance certificate gives details about all the registered legal dues and transactions.
Without No Objection Certificates, it is practically impossible to buy or sell a property. There are various places and various departments from where NOCs are required. To name a few, Fire Department, Water Department, Electricity Department, Pollution Control Department, Aviation and Highway Authorities as well.
Property Tax Receipts
The owner of a property is bound to pay the land tax every year. If the person fails to do so, then you are liable to clear all the previous dues as now you have purchased the property. Always verify the property tax receipts before buying it. Nobody likes to have extra burdens, especially when they are expensive and have the law involved.
Real estate investment is not an easy task and there are many more legal aspects that need to be considered. It is okay to feel overwhelmed and that is exactly why we have collated all the important points for you here. Apart from the above-mentioned documents, don’t forget to look into POA, House approval plans and similar other important documents. For more real-estate related information, keep following us.