Real estate purchases are the most expensive transactions that you will be making in your life. From the moment you find your dream home to the day you receive the keys, it’s critical to understand the legal requirements of real estate as well as your rights when purchasing a home. And with the real estate market constantly changing, there are numerous legal regulations that you should be aware of when purchasing a new home.
If you are a first-time homebuyer, this article will provide you with a checklist of factors to examine before you buy. To reduce your risk, the following are some crucial legal things to know before buying a house. Outside the syllabus of this article, try to do as much research as possible on the property when buying a house for sale in Kochi, Bangalore, Kolkata, Chennai or any other prominent cities in India that people always prefer.
11 Legal Things to Know Before Buying a House
- Agreement to sell
The agreement to sell is the first document made in anticipation of a property offer. It includes a detailed description of the property as well as the details of the agreement between the buyer and the dealer, including the agreed-upon price.
- Title Deed
It’s one of the most important things to look for. If the title is not perfect and free of encumbrances or faults, a seller cannot transfer his property to a prospective buyer. A person claiming to be the seller cannot sell his property if it is not in his name and he does not have a good title to it. A property’s title can be searched at a Sub- Registrar’s office. The buyer is entitled to acquire all title paperwork for the property, and for really old houses, title documents completed thirty years prior might be requested. Title documents generated thirty years before the date of the title search must be tracked. There should be no disagreements about who owns the property on the title. Before purchasing property, you should also determine whether the seller owns the property or only has development rights to it.
- The Sale Deed
The Sale Deed is a legally required document that proves the sale and transfer of property from the builder to the individual. Many times, years after purchasing a home, the owner may decide to sell the home for a variety of reasons, in which case this paperwork is critical. The sale deed is often executed prior to the sale agreement and after all parties involved have agreed to the terms and conditions indicated in the selling agreement.
- Occupancy Certificate
Before selling the property, the seller must obtain an occupancy certificate from the appropriate authority. In addition to the risk of the property being demolished, the use of the property without securing occupancy exposes the buyer to a penalty under the applicable building by-laws.
- Conversion and land-use permissions
With rising urbanisation and the amalgamation of revenue lands with urban conglomerates, the conversion of property for non-agricultural use takes critical importance, as numerous state laws forbid non-agriculturists from purchasing an agricultural property. Second, the buyer must check the Master Plan to ensure that the property has been built in line with the zoning plan – such as residential, commercial, industrial, public/semi-public, parks and open spaces, and so on. Where the actual use differs from the notified zoning, obtaining orders from the Town Planning Authority for the change of property use is required.
- Encumbrance Certificate
An encumbrance Certificate states that the property is free of all encumbrances or loans. It is a necessary document for obtaining a bank credit against the property. It contains all of the information about transactions relating to the property.
- Khata Certificate
A Khata is simply a revenue document that contains information on the property, such as its size, location, and the area on which it is built, to pay property taxes. It is also used as identification and is necessary when applying for a housing loan. It is critical to include the Khata Certificate in the home purchase process because it is required to apply for electricity and water service.
- No Objection Certificate
Wherever possible, no objection certifications should be acquired. The seller should also supply you with a copy of the urban non-ceiling no-objection certificate, as well as NOCs for water, power, and other utilities.
- The Building Approval Plan
Before starting construction, the builder must get the requisite sanctions under the terms of the Building Bylaws, Master Plan, and Local Body Acts. This sanction comprises two components: The Building Plan and the Layout Approval. One common error made by first-time homebuyers is failing to ensure that the builder follows the terms and conditions of the Building Plan and Layout Approval before purchasing the house. Noncompliance with the terms and conditions may result in negative consequences if the local authorities conduct spot checks, which are relatively prevalent in modern buildings.
- Receipt of property tax
Receipts of property tax show that the previous proprietor or occupier made good on all expenses and none remained unpaid. They also establish the property’s legal status and hence fill it in as a crucial piece of evidence.
- Commencement Certificate
Before any property construction can begin, Commencement Certificate is required. The local planning department issues this after inspecting the building layout, design, superstructure, and so on. Before beginning construction, the builder should have obtained all of the essential permits.
Other legal documents required when purchasing a property include a Completion Certificate (CC), Power of Attorney, Probated Will, and so on.
The information provided in the article is critical and should be carefully followed. If you are planning to buy a house for sale in Thrissur or anywhere in India according to your preference, you must be in accordance with the laws of the land, and never engage in any unlawful activities that may hurt not only you but also other people. Engage a team of professionals to make the home-buying process as simple and straightforward as possible.