|
|
|
|
|
House buying check list
|
A real estate investment is a major decision, specially if you are buying a house to live or investing in commercial real estate for an income.
Many real estate investors get stuck with bad deals and spend a life time in litigation just because they did not do a reality check and due diligence before investing in the real estate.
A few basic but essential checks before you invest in real estate can save you a lot of headache and heartburn later on.
Here is a checklist for you if you plan to buy property.
1) Who owns the land?
You need to know who is the owner of the land. A simple check with the local revenue department can give you the details of who owns the property and in what capacity.
Find out if the land is freehold (owned by the builder), or leasehold(leased to the builder by someone else). A leased landowner sets his own terms, and may charge a premium on the lease when it comes up for renewal. This will be an added and unanticipated expense for you.
If you want to buy property, confirm whether the builder is legally allowed to carry out the construction. If you need to, seek professional assistance to make sure the builder/ developer has a good title to the land.
While buying land, check details such as the survey number and village and registration district of the property, since these details are required for registration of the sale.
Check for these papers:
a. Consent certificate of:
- Society
- Income Tax authority
- Municipal Corporation
- Authorities of Urban Land Ceiling & Regulation Act
- Revenue record
b. Intimation of Disapproval
c. Commencement Certificate
d. Occupation certificate
2) Check the Permissions of local authorities
You must have heard or read about instances where several floors and, sometimes, entire buildings across metros have been razed to the ground.This could happen to you.
An Intimation of Disapproval specifies the conditions regarding the building construction. If the IOD is issued for one year and the construction is not completed by then, it needs to be revalidated.
A buyer needs to verify if an IOD has been issued. And, if so, the terms and conditions stipulated in it.
Check the Commencement Certificate, which permits the builder to construct the building. This is valid for a year and needs to be revalidated subsequently.
You should ensure the builder has requisite Floor Space Index. He should have the CC issued by Municipal Council and approved plans up to the floor where he is buying a flat."
3) Agreement to sell
Any grey areas or issues you leave out while entering into an agreement to sell can come to haunt you later on so make sure to get professional help.
Once you have verified documents, get into an agreement with the builder or the developer. You must ensure the conditions are spelt out clearly, so that problems arising out of ambiguity don't arise.
This agreement should specifically mention flat number, wing and floor of the building, amenities provided in the flat, terms of payment, date on which the possession of the flat will be given, etc.< |
|
|
1 2 >> |
|
|
«Back
|
|
| |
|
