Home buying is not a rocket science. But one must keep some things in mind before closing the deal.
With festive season round the corner, all fencesitters are most likely to take a call on buying a dream home. However, before buying a home, one must keep certain things in mind to avoid last minute hassle. One may make home buying exercise a hassle-free one, if he or she follows certain thumb rules. In short, evert homebuyer must exercise certain level of caution.
Rajesh Narain Gupta, Managing Partner, SNG & Partners, says there are some key documents that a buyer should keep handy at the time of booking/buying a property. When you are looking to buy a property, the project undertaken by builder may or may not be covered under RERA. Further, in many cases you buy a property from an existing owner which is a resale transaction where the builder may not be involved at all. Irrespective of whether it is a property developed by a builder or a resale transaction, the Transfer of Property Act, 1882 expects a buyer to be vigilant and to comply with the duty to care.”
Title to the property
First and foremost, the title to the property needs to be checked. If the seller’s title to the property is clean, buyer will get a clean title. If there is a clog or shortcoming in the title, the buyer will always get the title with the existing clog or shortcoming.
Buyer must examine the following documents before entering the transaction to buy a property and if required, seek professional help:
Resale of properties
In case of resale of properties, documents of title possessed by the seller should be examined which should include the complete chain of documents i.e. the original owner and the subsequent owners up to the last owner who is now selling the property. After examining the originals, a due diligence should be undertaken from the office of sub-registrar of assurances to check if the property has a clean title. Due care should be taken to check the construction permissions given by the Corporation and also the completion and occupancy certificate issued by the Municipal Corporation. Further, where the seller is a company, one needs to check with the ROC whether the property is not subject matter of any existing charge. One also needs to check with the Municipal authority whether the property taxes have been paid.
If the seller is a HUF, there is a need to seek confirmation from all the members of the HUF. Where the seller is a Company, there is a need to take a copy of resolution passed by the Board of Directors authorising the sale. Similarly, if the Seller is a partner, there is a need to check the partnership and the consent of all the partners which is required for the sale. In most cases, the above precaution is required. One should insist in giving a public notice before buying the property.
For the properties being sold by builders and covered under RERA, one should also insist on verifying the registrations and approval under RERA.
Mukesh Jain, a legal expert, says there are some key documents that are required to be kept handy for booking or purchase of a property:
Any transaction for sale or purchase of Immovable property of Rs 10 lakh and above requires quoting PAN no. of the contracting parties. Hence, PAN card of the buyer shall be needed.
If the purchaser is representing some other person as an attorney, the registered power of attorney of the principal is required.
If the buyer is a body corporate or an LLP, a board resolution or resolution of the designated partners authorizing the signatory to execute the sale agreement, etc on behalf of the buyer is required.
If the buyer proposes to avail housing loan to fund the purchase of the property, a pre-approved eligibility letter of the loan from a bank, HFC or an NBFC is required.
In case of joint purchasers, all documents shall be required for all of the co-purchasers.