Document Checklist Before Buying a Property

Property buying is a tedious job and you have to be extra cautious from the initial step to the final stage.  A number of things have to be kept in mind when planning to buy property and one of them is documentation.
Considerable documentation goes into the process of home buying, to avoid any legal issues. 

Mandatory Checks:

1.    Check the Title of the Property: To know who the owner of the property is, check the title deed. If there is ambiguity, you can seek the assistance of your lawyer or approach financial institutes to check if the title of the property is clear. Without a clear property title, banks will refuse to fund your property and it may also cause legal problems in the future. It is always important to get a legal opinion before hand on the title of the property.

2.    Measuring the land: Prior to registering a property in your name, it is recommended that the land be measured. The seller could always quote wrong figures in documents. Hence it is wise to obtain a measurement that is verified by a property inspector or surveyor.   

3.    Approved Layout: Next check if the layout of the property is approved. It is essential to obtain a copy of the approved layout for the building from the builder or seller. Before proceeding, ensure that the building plan and its construction is approved by the authorities listed with the Government Registrar.

4.    Check for any Pending Bills: There are various taxes which are paid to the Government like property tax and water tax. Ensure that prior to buying a property all dues are cleared. Sometimes the owner of the property has pending work and the new buyer has to pay those.  Also keep a track of the electricity bills, notices or pending applications related to the property in question.

5.    Encumbrance Certificate: The encumbrance certificate has to be verified in advance to know if the property you are interested in, has been previously mortgaged. If the property is mortgaged, and there are any pending dues, the owner is legally responsible to close the same before selling the property. This certificate can be acquired from the Sub Registrar’s office.

6.    Pledged land: Sometimes people take loans from banks by pledging their property. Before buying such property, please ensure that the owner has paid the entire amount to the bank and there are no dues. This can be verified by asking the owner for a release statement that has been received after the last payment to the bank.

It is also essential to obtain a legal opinion before purchasing a property. One needs to also opt for a good real estate agent  who can assist in the right selection.