1) take 30 years title search of the property

2) obtain certificate from lawyer that title is clear and marketable

3) check whether buikder had original chain of documents

4) whether property taxes paid till date

5) whether plans sanctioned by muncipal corporation and building completed as per sanctioned plans

1. Get the property documents searched by an experienced lawyer,

2. Check the original mother deeds to ensure that the land has not been mortgaged with any Bank,

3. Ensure that the project has not been mortgaged with any Bank and if it has been mortgaged, collect a NOC from the said Bank for your buying the said 60 Sq.Ft floor and mortgage it with your Bank,

4. Apply for loan from a PSU Bank who will get the property searched and will inform you if there is any defect in the papers to be cured,

5. Ask for the sanctioned plan received from the Municipality and OC/CC issued by it certifying that the construction has been carried out as per the plan,

6. Get the Agreement check by a local lawyer before executing it,

7. The said agreement should have penalty for delay clause duly mentioning the last permitted date of handing over possession of the floor to you.

Ask for copies of all necessary permissions prior to making any financial commitment

Here’s a list of documents which is important while buying a house:

Title Deed/ Check for evidence of right to ownership or land record;

Construction Clearances;

encumbrance certificate

Approval on the building plan and construction;

Documents showing property as debt free asset:;

Water and power supply related documents:

Land Use Certificate

Master Plan of the Area

No Objection Certificates (NOCs):

An easy way to verify that the project has clean paperwork is to see if it has loan approvals from financial institutions. Banks have stringent lending rules and do their necessary due diligence before clearing loans. However, this is not always error-free and there have been many cases in the past where the builder had bank support, but the project landed in legal troubles. It is therefore better to get professional help. If necessary get a paid opinion from a lawyer who specializes in property transactions and get all documents verified.

1. The due diligence should commence by checking the title of the property as the title forms the foundation of proprietary rights. According to the Indian Contract Act, no seller can pass on to the purchaser a better title than what he already possesses. Therefore, the title of the seller must be clear and free from any encumbrance. Before you buy a property, verify the title of the seller and also the antecedent chain of ownership. A search of the records at the sub-registrar’s office may be carried out through a lawyer for documents that may affect the property and may have been registered .The report will show the recorded owner of title of the property and changes in the title of the property.

2. Inspect the plans threadbare to check whether they have been sanctioned by the concerned authority.

3. Always verify documents of title to check payment of stamp duty. If the ownership of property has changed hands more than once, examine all the documents for payment of stamp duty by the predecessors.

4. Occupation certificate should be inspected to ensure that the building has been built legally, especially in case of new buildings.

5. Last but not least, engage a lawyer to carry out the above process.

1) Housing finance companies won't sanction any loan unless title to property is clear and marketable

2) the decision whether to proceed with purchase the property or not is your call

3) best option is to the documents vetted by local lawyer before yiu proceed with purchase of the property

1. Collect the copy of the sanction plan for the construction,

2. Collect the CC/OC for having completed the floor as per the sanctioned plan,

3. Since, they are providing the original link deeds, it appears that the property( at least the land) has not been mortgaged anywhere. However, check the genuineness of the original link deeds since fake deeds are available aplenty,

4. Of Course LIC gets the title of the property checked through its lawyer but you can not pass on the blame on LIC if there is something wrong found in the said deal since the onus of getting the property checked lies on you. ,

I have searched around 100+ properties in Hari Nagar, Delhi - 110064 area and all of the properties that are below 100 Sqyd does not have approved Map. T

It may be a practice prevailing that side but that is not correct. As per law not even a single house can be constructed without approved plan. Though the authorities may turn a deaf ear or blind eye to such things due to corrupt practice, one day when the government is waking up, all the illegal and unapproved houses shall be ordered to be demolished. Therefore avoid back door entry for a problem that can be solved through the front door.

So should I quit the idea of buying a 55-60 Sqyd property in this area?

You may decide about it after analysing pros and cons.

Do LIC usually sanction loans without stringent security checks? Should I inquire regarding the loan on this property from DHFL too?

LIC HFL is having a panel of advocates who will give legal opinion for grant of loan, therefore it can be a reliable issue if they sanction loan.

About DHFL, they are bit more flexible.

Without an approved map it is not advisable to purchase the property. LIC will not come to your rescue if subsequently there is a defect in your title.