Are You Familiar with What to Check Before Buying a Flat?

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Introduction

As one of the most popular real estate hotspots in the country, Hyderabad is witnessing a boom in property buyers. It also has a rapidly developing employment infrastructure. Due to this, more people migrate to this city. Although finding a dream property is not an easy task, there are certain things that a buyer should always check. One of those important things is having all the necessary legal documents to buy property in Hyderabad.

Are You Familiar with What to Check Before Buying a Flat?

Table of Contents

Through this blog, we list the documents required while buying any property in Hyderabad. So, read carefully till the end so that you don’t forget anything while buying property in Hyderabad. Property investments involve a lot of capital and if something goes wrong during the process, it can cause a lot of trouble for the buyer. This makes it imperative for the buyer to take due care while checking the property documents.

Check Before Buying a Flat

It is a settled legal principle that a person cannot convey a better title than himself. As a first step, the buyer needs to conduct due diligence with the seller to ascertain the existence of the title, the nature of the title, and its marketability. The seller’s ability to convey a clear and marketable title free of encumbrances must be ascertained. Documents, for 30 years, if not more (and where documents are not available, for at least 12 years), must be examined.

Title Deed

Know that title deeds are one of the most important legal documents required while buying property in Hyderabad. Generally, these documents are used to check the ownership history of the property. Therefore, the property you prefer should be in the name of the current seller only. Only a title deed can prove the seller’s absolute ownership of the property. If the buyer fails to obtain the title deeds or does not do so in the seller’s name, it can expose you to more legal problems.

Verify the Identity of the Seller!

As with confirming the title to the property, the buyer must also confirm the identity of the seller. The seller’s ability to convey the property should be examined.

  • In the case of an individual, the sale requires consent from government authorities, the seller’s state of residence, and nationality.
  • Identity of all owners in case of joint property.
  • Where the seller is a company, trust, partnership, society, etc. In addition to ensuring that the person executing and registering the sale deed has the necessary authority, the entity’s constitutional documents are necessary to ensure its ability to own and transfer property.
  • Orders from a court of competent jurisdiction to sell property held by a minor or an incompetent person and to appoint a guardian.

Documents to check before buying a plot usually include documents that help you confirm the identity of the seller, such as one’s Aadhaar number, PAN number, passport, income tax returns, salary certificates, etc.

Conversion and Land Use Permits

Increasing urbanization and amalgamation of revenue lands with urban agglomerations. Conversion of property to non-agricultural use is critical as many state laws restrict the acquisition of agricultural property by non-farmers.

Secondly, the buyer must go through the master plan and satisfy himself that the property has been developed following the zoning plan such as residential, commercial, industrial, public/semi-public, parks and open spaces, etc. Actual usage will vary. Notified zoning requires obtaining orders from the Town Planning Authority permitting a change of land use.

Construction Approval

Documents to be verified before buying land with building now constructed. To purchase an apartment or land with a constructed building, the buyer has a grant document from the local municipal authorities. Official document taken to provide infrastructure, water, sewerage, and electricity along with building plan/layout plan. Obtain approvals issued by statutory and regulatory authorities by the government. Environmental clearance, fire safety approval, etc.

Tax Payment Status

Non-payment of property taxes is a charge on the property, affecting its marketability. Therefore, the buyer must verify with the municipal authorities that the seller has not defaulted in payment of property tax.

Ask for receipts of all utility bills from the seller. Once the property is transferred in your name, you will have to pay all the pending dues of the property, utility or otherwise.

Compliance as Per the Real Estate Act, 2016 (RERA)

RERA mandates developers to register their projects with the authority constituted under the Act. A buyer who wants to buy a property in a project covered by RERA needs to verify whether the property is registered with the authority.

The information available on the official web portal of RERA for each state provides details of any cases/complaints filed against the project developer. If the developer defaults, it provides useful insight into the reliability of the developer and the project and helps the buyer. Buyers should take note of the fact that the law mandates that all real estate brokers should also be registered with the state RERA to operate legally.

Hence, hire a property broker only after asking for his RERA registration. Also, note that agents need to get their RERA registrations renewed periodically. Ensure that you are dealing with the right person. One of the biggest benefits of having a regulatory body is that it requires a standard process of operation, and violators are penalized.

Documents Required in Case of Loan Arrears

If there is any outstanding loan on the property you are buying, due diligence is necessary before signing the deal. Note that it is important to check more documents. As a potential buyer, you can ask the seller to clear the outstanding home loan amount or a portion of it. Get the original property documents from the bank. Register the property in your name. Then you pay the balance.

If you are planning to take a loan for a property purchase, you can also apply to transfer the seller’s loan to your name. Before transferring a loan in your name, it is advisable to check your eligibility. It is the bank’s responsibility to check the seller’s KYC. To ensure full disclosure, you must ask the bank for a copy of the title documents and outstanding loan statements.

Conclusion

As we conclude your visit to Openplot.com, we want to express our gratitude for entrusting us with your real estate aspirations. Whether you are ever looking to buy or invest in property, our Openplot will come in well handy. Because our Openplot publishes only the truth. To tell the truth, we will not publish a lie and will not tolerate a lie.

Also read: Quality Projects: GHMC will Assess the Quality of Urban Biodiversity Projects

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