When Purchasing Property Guidelines - Inputs

To safe guard yourself from property frauds, here are the precautionary measures that must be taken/items to check by consumers while purchasing a property. If you have additional inputs, please share.

Things to do when purchasing property

1. Whether the concerned realtor has obtained C.L.U. [commercial land use certificate] or permission letter from the competent authority wherein he is setting up Project for sale .
2. Do extensive survey about the market rates and negotiate.
3. Ascertain and confirm the target completion date.
4. Ascertain the date of possession when the property will be handed over to the buyer? Discuss penalties for delays.
5. There should be clarity about provision of Gardens, Public utilities, Electricity, Roads, Water and Sewage etc ,which should be defined elaborately in the plan. Whether the buyer will have to pay extra charges for the above mentioned facilities.
6. When buying property from the developer check carpet area, built-up area and super built up area, payment terms , study complete technical specifications of the design and material etc .
7. Ensure that the design offered is earthquake resistant.
8. Always insist for complete original documents and check the owner ship of the Property to be purchased. Certificate of non encumberance i.e. free from any dispute all dues including municipal taxes electricity, water and sewage etc paid.
9. If original documents are not available, make counter check of the ownership from the available photocopies. Verify the ownership from developing authority /Municipal Corporation or Tehsildar /Sub Registrar office.
10. If the property is to be transferred by means of Power of Attorney verify whether the attorney holder has the authority to sell the property.
11. Make proper verification /enquires regarding the property and the neighboring land by examining the site plan properly.
12. Find out whether the property is mortgaged /hypothecated with a bank or under civil/criminal dispute.
13. Find out whether the property is free from any encroachment.
14. Ascertain whether land to be purchased comes under acquisition notification of Govt. u/s 4 & 6 of land Acquisition Act.
15. Verify whether the property is rented or partly sold out.
16. Get a certified copy of every document from the concerned Sub Registrar/ Tehshildar office.
17. Ensure that payments are made through cheques / DDs in the name of vendor against a proper receipt likes sale deed, Agreement to sell etc.
18. Ensure that signatures/fingerprints are made on the documents by the vendor.
19. No sale is complete without signatures of both the parties.
20. Customer should obtain a written agreement from builder. This written agreement will shield him at all times against exploitation by the realtor. more