• Buying resale property

Greetings!

I am searching to buy a 2 bedroom resale flat in Thane.
This will be the first time I will be purchasing property. I am 32 years old.

Questions:
() What documents should I check from the seller to ascertain that he is the owner of the flat.

() Since its resale, most of them do not fall under RERA. How can I check for any legal issues with the building / land etc.

() Assuming I deal with seller, what steps should be followed for transfer of ownership? I will 
taking loan from SBI.

() Any other precautions that I should take care for not being cheated.
Asked 2 months ago in Property Law from United States
Religion: Hindu

1. FOLLOWING documents needs to be scrutinised.
a) ORIGINAL Chain of ALL agreements
b) Building "occupancy certificate" (OC)
c) ALL Dues should be clear (Electricity, NA taxes, Property Taxes, Society charges, Mortgage /Lien)
d) There should be no family disputes or court dispute on the property
e) There should be no claim by Banks, Taxation authorities, on the property
f) Property should be brought ONLY from registered ALIVE owners and should be duly Stamped & Registered and Possession should be taken immediately.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
1813 Answers
10 Consultations

5.0 on 5.0

1) You need to check below property papers from the seller

  • TMC tax receipts 
  • Society share certificate 
  • Sale deed from previous owner or builder 
  • Index II
  • layout plan passed by TMC
  • OC or CC 

2) Rest of structural audit will be done by SBI team. You can show property papers to SBI and they will take care further. If they pass home loan against this property to you means the property is clear.

Ganesh Kadam
Advocate, Pune
6426 Answers
47 Consultations

4.9 on 5.0

1) Before going ahead to purchase, intimate the seller to produce a good title certificate regarding the property. 2) If the seller fails to produce such a certificate, you have the option to not to purchase it. 3) Still if you want to purchase the property (ie without the seller being able to produce the Good title Certificate), you must appoint an advocate to examine the title of the property. 4) If the seller produces the good title certificate, or, your Advocate, after due examination of the title, advices  in favor of purchase, you must instruct your Advocate to get a notice published in one English and one vernacular daily, of your intention to purchase the stated property; and any objections or encumbrances to be notified to you within 15 days of such publication. 5) If no objections are received, or your Advocate, after examining the objections, advices you that they are not valid, then you can go ahead with executing the Sale deed. 

 

Netra Mohanchandra Pant
Advocate, Navi Mumbai
752 Answers
1 Consultation

4.4 on 5.0

1. The previous sale deeds of the property, index of sale deed, mutation in municipal records, share certificate if available possession letter. 

2. You can get the documents of property legally.vetted from lawyer and further there can be indemnity clause in the sale deed.

3. First a agreement to sale is required to be made and registered after that your loan shall be approved on agreement value then you can proceed make payment and register a sale deed on payment of stamp duty and registration fee.

4.Take all the original documents from seller on sale I.e chain documents.

Shubham Jhajharia
Advocate, Ahmedabad
15317 Answers
63 Consultations

5.0 on 5.0

1) ask seller to produce original sale deed executed by builder in his name 

 

2) share certificate issued by society in his name 

 

3) NOC from society for sale of flat 

 

4) no dues certificate from society 

 

5) check whether OC has been issued by muncipal corporation 

 

6) conveyance executed by builder of land in favour of society 

Ajay Sethi
Advocate, Mumbai
61317 Answers
3721 Consultations

5.0 on 5.0


To avoid falling into legal hassles. Before buying a land, a number of checks need to be done to confirm that the land has a clear and marketable title. 

Title deeds -
The first step is to see the title deed of the land, which you are going to buy. Confirm whether the land is in the name of the seller and that the full right to sell the land lies with only him and no other person. It is better to get the original deed examined by a lawyer. Along with the title deed, you can also demand to see the previous deeds of the land available with the seller.

Tax receipt and bills - 
Property taxes, which are due to the government or municipality, are a first charge on the property and, therefore, inquiries must next be made in government and municipal offices to ascertain whether all taxes have been paid up to date. Inspect whether the latest tax paid receipts have been paid. Inquire with various departments of the municipality to ascertain whether any notices or requisitions relating to the property are outstanding. If you are buying a house along with the property, then the house tax receipt should also be checked.

Encumbrance Certificate - 
Obtain a certificate called encumbrance from the sub registrar office (Now these Certificates are available online at Meeseva Centers at a payment of Rs.230/- min) stating that the said land does not have any legal dues and complaints. You can check the encumbrance certificate for the past thirteen years or could demand verify the 30 years encumbrance certificate.

Pledged land - 
Some people may have taken loan from the bank by pledging their land. Ensure that the seller has paid back all the amounts due. Ask for a release certificate from the bank, which is necessary to release all the debts over the land legally.

Measuring the land - 
It is advisable to measure the land before registering the land in your name. Take the help of a recognized surveyor to ensure that the measurements of the plot and its borders are accurate. You could also take the survey sketch of the land from the survey department and compare for accuracy.

Power Of Attorney - 
Power of Attorney is the power given to an agent by the principal to execute several acts and deeds for and on behalf of the principal. Stamp duty payable depends on the nature of power given. When ‘power’ is given in respect of a number of acts in a number of transactions it is called General Power of Attorney. It is always advisable to hold a registered GPA while registering an immovable property in order to give better title to the property. When ‘power’ is given in respect of a particular act pertaining to one transaction it is called Special Power of Attorney.

Agreement - 
Once all the matters, financial/otherwise are settled between the parties, it is better to give an advance and write an agreement. This ensures that the owner does not change his word regarding the cost as well as make a sale to someone else who offers more money. The agreement should be written in Rs.50 stamp paper (min value). * The agreement should state the actual cost, the advance amount, the time span within which the actual sale should take place and how to proceed in case of any default from either parties, to cover the loss. The agreement can be prepared by a lawyer and should be signed by both the parties and two witnesses.

Registration - 
The agreement should be registered with the Sub-Registrar of Assurance. Make sure all the details mentioned are accurate. Original title deed, Previous deeds, Property/House Tax receipts, etc plus two witnesses are needed for registering the property. The expenses involved during registration include Stamp Duty, registration fees, Document writers/ lawyers fees etc. Make sure that the deed is registered within the time limit mentioned in the agreement

Prerit Goyal
Advocate, Jaipur
8 Answers

Not rated

Dear Sir,

The following are the documents should be check.

Title Deed

This is a type of document that typically outlines the chain of ownership of the respective property. It provides full right to the owner to claim the absolute ownership over the property. While buying the property, check if it belongs to the respective seller. Check the deed thoroughly, and if have no knowledge about it you can seek help of a property agent. If the title of the property isn't in the name of the seller, then legally the property shouldn't be purchased unless the consent from the real owner.

Sanctioned Building Plan

Every developer at the start of the construction has to get the approval from local planning authorities. The developer has to submit the required documents for the sanctioned plan approval. So when you hunt for a residential apartment, do check if the developer agrees to present the sanctioned plan, if not then the construction is termed as illegal.

Completion/Occupancy Certificate

This is yet another essential document the developer of the property has to submit to the buyer. Municipal authorities issue the Completion Certificate (CC) after the completion of the project. Occupancy Certificate (OC) is issued by the local government agency after the inspection and states safe for the residents. These documents are an important part of the home loan and should be in your checklist

Tax Receipt

The property owner has to present you with the legal tax pay receipt failing to which the government is authorised to impose a penalty of certain percent every month on the property buyer. So do make sure to check if the existing property owner has completed the tax regime.

Encumbrance Certificate

It is a document issues by the sub-registrar to check if there is any encumbrance on the property like mortgage, charges, etc. The sub-registrar issues the certificate with complete details about the legal dues pertaining to the property. It is important for the property buyer to check whether the property is under mortgage or loan.

Mother Deed

This document is needed when you buy a resale property. This is the parent document tracing the ownership right from the start.  There are situations where the owner may do some fraud activity by undertaking the ownership of the property illegally, which will certainly effect your investment.

Power of Attorney

This is an important document when buying a property. It is required to know if the seller has complete right over the property and selling it. You can even check with the real owner to have a check over the enforcing of power of attorney to the seller.

Mutation Document:

This document contains all the details about the property including the name of the owner, property size, location, and other important information. It is issued by the municipal authority in the name of the present owner.

 

 

Netravathi Kalaskar
Advocate, Bangalore
2447 Answers
6 Consultations

5.0 on 5.0

1. Ask him to supply you the chain deed of title. It is advisable that once you are handed over the chain deed, you consult a lawyer so that he may conduct a legal due diligence for you and ascertain for you that the seller has a clear and marketable title. Also, you lawyer will find out for you if this property is free from all encumbrances.

2. Engage a lawyer and ask him to conduct a title search for you.

3. See that your sale deed is carefully drafted and includes the relevant clauses for your protection.  

Vibhanshu Srivastava
Advocate, New Delhi
8222 Answers
118 Consultations

5.0 on 5.0

Dear Sir,

 

- Do check with the local Municipal authority on the ownership of property in question Ownership of land (Incase residential plot than in name of owner and incase flat the ownership in name of Society)

- Get the mutation details from respective authority and cross check its validity.

- Index Sales Deed, OC (For loan requirement mandatory) - For loan, you will have to have the chain of ownership for previous 20 years from the municipal for land (if not mistaken SBI has 15 years, please cross check). For builder floor or flat, do have the chain of ownership till date which will not be much.

- Do check all taxes and maintenance payments are paid on time. Any liability in terms of delay/ late payment fee

- In-case any previous Electricity consumption outstanding.

- The building plan approved by Town and Country planning. 

 

Regards

 

 

Vivek Arya

 

Vivek Arya
Advocate, Gurgaon
302 Answers
3 Consultations

5.0 on 5.0

1. First sale deed and other sale deed also as the property may be sold twice or thrice.

2. From the Municipal Records.

3. First have registered agreement and when loan will be passed then go for Sale Deed.

4. Verified the antecedents of the person who is selling the flat whether he is the owner or not, this could be easily verified in the vicinity confidentially.

Koshal Kumar Vatsa
Advocate, Gurgaon
1331 Answers
1 Consultation

5.0 on 5.0

Seller must have a registered title deed in his name

The building must be issued Occupation Certificate by the Municipality or local body

If its a society, the seller's name should be entered in society records as a member and also his name must reflect in society share certificate 

All dues must be upto date paid

There must not be any existing loan on the flat

As you are taking a loan for buying this flat, you need not worry much as the bank will do its due diligence before sanctioning your loan

You can also take a search from office of sub registrar to check there is no third party right created by seller on this flat

Public notice in local newspapers can also be published to invite objections against the sale transaction 

You can also check the High Court website to ascertain there is no pending litigation touching the seller or involving the flat

Yusuf Rampurawala
Advocate, Mumbai
3883 Answers
16 Consultations

5.0 on 5.0

1. First of all you shall have to ascertain whether the reseller has already mortgaged the said property by depositing the original title deed with the lending banker while taking loan or not. So, verify the original title deed of the said reseller.

 

2. If the reseller is the 1st buyer of the developed flat then check the development agreement and also the title of the land of the land owners includiung the sanctioned construction plan and the CC to ascertain that the said development has been done lawfully.  

 

3. Thereafter to ascertain wherher there is any court case pending before any court or not, you should arrange to conduct Court search for 20 years.

 

4. Engage a lawyer having expertise in this field to conduct the above search and submit the due diligence report to you.

Krishna Kishore Ganguly
Advocate, Kolkata
21771 Answers
564 Consultations

5.0 on 5.0

You can check the registered sale agreement. You can get the search report established his title. You can check whether any loan is not pending on the same or any charge or lien is not there on Property. You can also check that NOC is given by all other legal heirs to the said seller if the same is not self acquired property

Prashant Nayak
Advocate, Mumbai
8304 Answers
11 Consultations

4.8 on 5.0

Before buying the flat please get the documents related to flat be verified by a competent person or through property lawyer. 

Mohammed Mujeeb
Advocate, Hyderabad
7067 Answers
3 Consultations

4.5 on 5.0

Documents that you need to see before buying the property:

  1. Sale Deed
  2. Building approval plan
  3. Encumbrance Certificate
  4. Occupancy certificate
  5. Completion certificate
  6. Latest property tax receipts

You should get the title verification done by the Advocate and get legal opinionbefore buying any property as due diligence of all the documents need to be done in order to prevent any future disputes or litigation.

 

When you make the payment to the seller, a sale deed would be executed in your favour which would be registered at Sub registrar office in the presence of two witnesses for which stamp duty needs to be paid according to the value of the property.

 

Regards.

Siddharth Jain
Advocate, New Delhi
3849 Answers
42 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that you wish to buy a property, but before that want to inquire everything about the same.
  2. I must say that your step for going for the same is quite appreciable as in this way you would save you from future problem, if any happens to come.
  3. You should go to the Tehsildaar office at the pace where the property is situated and after giving nominal fees, inspect the documents pertaining to the same property.
  4. And also should go to the Police Station to inquire about any cases if pending on the property in question.

Sanjay Baniwal
Advocate, South Delhi
3999 Answers
7 Consultations

5.0 on 5.0

Here is the list of documents required:

  • Absolute sale deed in present seller’s name
  • Khata certificate & extract from BBMP
  • Latest tax paid receipt
  • If any loan outstanding on the property, latest statement from bank
  • Encumbrance Certificate from date of purchase till date
  • Agreement of sale & construction executed by developer in favour of seller
  • Latest electricity bill & receipt for the said flat
  • NOC from Apartment Association
  • Sanctioned building plan
  • Possession/occupancy certificate from builder
  • All title documents of land owner
  • Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
  • Whether originals are available for inspection if no loan is taken?
  • A Copy of all registered previous agreements (in case of re-sale property)
  • RTC (Records of Rights and Tenancy Corps) or 7/12 extract
  • Conversion Order issued by the concerned Authority
  • Registered development agreement (If in case of Joint Development Property)
  • Power of attorney/s if any
  • Photocopy of Society share certificate & Society registration certificate.

Ensure A Clear Title :

This is the most important aspect to be considered before buying a house. If you are buying a house on a leasehold land or land owned by government, you need to obtain a no- objection certificate from the authorities. To get such a certificate, you may have to pay prescribed fees, which will further inflate the consideration for the property.

 

Always insist on the ‘chain of documents’— all the agreements effecting ‘buying and selling of property’ till date since it was constructed.

T Kalaiselvan
Advocate, Vellore
51434 Answers
612 Consultations

5.0 on 5.0

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