• Buying an under construction flat

I want to buy an under construction flat in moradabad UP. As per builder it may be delivered in a year time. I have got a seller who has paid the full amount as down payment to the builder. As per seller a small amount would be charged as transfer fee. What is the legal process for purchasing? I have to take bank loan from a nationalized bank. What documents should I ask/check? Should I wait till registration of property in sellers' name but that would increase the cost also.
Asked 2 years ago in Property Law from Moradabad, Uttar Pradesh
First get an agreement in writing with the seller and consent letter in a stamp paper of the builder for the same.you must cross all documents and it's permission and plan details encumbrance certificate possession certificate etc.better is to wait till seller gets it in his name.now enter into an agreement with him
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
1) first find out exact amount to be charged by builder as transfer fees ? who will make payment seller or buyer? 

2) ask seller to obatin NOC from builder for sale of flat , original agreement for sale entered into with builder by the seller 

3) building plans duly sanctioned by muncipal corporation 

4) inspection of original title deeds for land on which building is being constructed 

5) dont enter into any agreement with seller  unless bank is willing to sanction loan for the flat 

6) best option is to wait for for building to be completed by the builder  . society formed . possession handed over to flat owners . then purchase flat . transfer charges would then be nominal 

7) there is no harm in paying little more money for the flat but atleast your money is safe . let builder obtain OC from municipal corporation . then buy flat
Ajay Sethi
Advocate, Mumbai
23308 Answers
1220 Consultations
5.0 on 5.0
Hi, you have to check all the original documents and it is better you have to contact local advocate and get opinion from him and it is very difficult to give opinion based on your narration.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
Dear Client,In that situation you should go for property verification firstly then go for further proceedings if need more clarification then contact us.
Advocate Anurag Bhatt
Allahabad High Court
7408832772
Anurag Bhatt
Advocate, Allahabad
83 Answers
1 Consultations
3.7 on 5.0
A. NOC from the builder is very much essential.

B. Verify Parent Deeds, Sale Agreement, Commencement Certificate, approved building plan, JDA, GPA , Sharing  
    Agreement, EC etc. ( Contact local lawyer for scrutiny of title flow ).

C. Get a confirmation letter from the seller and the builder regarding  whether this project is OC project or not?.

D. Generally, builder always imposing hidden charges on the flat, so better you do wait till registration of the property in Seller name, once registered the property you will know the exact flat price.

F. You have to know the proper transfer fee because of avoid complication at the time of transfer of a flat.
B.T. Ravi
Advocate, Bangalore
736 Answers
30 Consultations
5.0 on 5.0
Development Agreement: development agreement between landlord and developer.

Sanctioned Plan: sanctioned plan by the Corporation or Municipality

Power of attorney:power of attorney executed by the landlord

Title Deeds:First and foremost, check the title deed of the property which is being purchased.

Tax receipt and Bills:Property taxes which are paid to government or municipality are a first charge on the property. 

Encumbrance Certificate:Before purchasing the land or house, it is important to confirm that the land .
Owning a property is an important thing in one’s life. However, one needs  to be careful while purchasing a land in each point to avoid falling into legal hassles. Precaution is needed from the initial stages of deciding on a property till the registration. The legal status of the land is one of the first issues that you should address before confirming a property. Don’t make any confirmation by paying advance before checking the legal status of the property.

Before purchasing a property, there are a number of inquiries that need to be done to confirm that the land has a clear and marketable title. The first thing is to find out the tenure and legal right of the holder of the land in government records. The tenure or possession right could be freehold, leasehold or may be held under a government grant. Freehold land is always most preferable. The seller should provide all the necessary documents to the buyer.

There are certain documents which need to be taken care while purchasing the property.
Title Deeds:First and foremost, check the title deed of the property which is being purchased. Confirm whether the property is in the name of the seller and the rights to sell the property lies with only him and no other person is involved in it. Don’t satisfy yourself with the copy of the title deed. Insist on seeing the original deed. Sometimes the seller may have taken a loan by pledging the original deed. It also needs checking whether the seller has permitted any access to others through this land and whether any other fact has been left undisclosed by the owner of the land.It is better to get the original deed examined by a lawyer. Along with the title deed, the buyer can also demand to see the previous deeds of the land available with the seller.
Tax receipt and bills:Property taxes which are paid to government or municipality are a first charge on the property. Hence, enquiries must be made in government and municipal offices to ascertain whether all taxes have been paid up to date. The owner should also possess the latest tax paid receipts, which you may inspect. While investigating in different departments of the municipality, you need to ascertain whether any notices or requisitions relating to the property have been issued and are outstanding and not yet complied.While inspecting the property tax receipt, it can be noted that there are two columns in the tax receipt. Make sure that the name entered in the owner’s column is correct.  The second column will be for the name of the one who paid the tax.  Sometime the owner may not have the tax receipt with him, in such cases, contact the village office with the survey number of land and confirm the original owner of the land. If you are buying a house along with the property, then the house tax receipt should also be checked. Also make sure water bills and electricity is been paid up to date and if there any is balance payment to be made, ensure that it is made by the seller.

Encumbrance Certificate:Before purchasing the land or house, it is important to confirm that the land does not have any legal dues. Check the Encumbrance Certificate issued by the sub register office where the deed has been registered, stating that the said land does not have any legal dues and complaints.

Pledged land:Some people may have taken loan from the bank by pledging their land.
Minansu Bhadra
Advocate, Kolkata
266 Answers
23 Consultations
4.8 on 5.0
Hello'
Before you purchase a flat, get a title and document verification done by a competent lawyer. The flat you are purchasing should be built according to a plan that has been approved by the local authority/Municipality
Below are te document which need to be verified : 
1) Search Report 
2) Nonagricultural land certificate 
3) Original sanctioned plan. Blue print 
4) Commencement certificate 
5) Agreement on stamp paper 
6) Property Card.
7) Index 2 certificate 
8) Registration receipt 
9) Possession letter 
10) Completion letter 
11) Sale deed certificate.
Get help from a local lawyer
It is advisable though you have to pay more wait to purchase till the seller acquires full rights over the flat when it is transferred in his name.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
1.What is the stage of construction. It seems unusual as normally no body pays the entire amount before one year of expected time of completion of a flat,

2. You shall have to see the sale agreement and make saerch of the property thoroughly,

3. It will be very safe if you make a ripirtite agreement with the seller & builder and pay the entire amount at the time of registration and taking possession,

4. Submit the papers before Bank for taking loan. If Bank refuses to provide loan, do not buy the property.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
232 Consultations
5.0 on 5.0

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