New homebuyers have a lot to keep in mind whenever they purchase a home. From location and amenities to prices, there are several things that they should definitely go over before finalizing the purchase. Before buying an apartment or during choosing the same, there has to be a legal and document based checklist for buyers as well. This will help stay on the right side of things and will enable better decision making.
Here’s taking a look at the essential checklist for new homebuyers in this regard.
Title deed and seller’s ownership of the property-
You should always undertake a thorough examination of the title deed for the property where you are buying an apartment. The deed should be clear and in existence without any encumbrances. The documents should be carefully scrutinized. Here are some of the aspects worth remembering-
- Title Type- Freehold/Leasehold/Development Right.
- Registration and stamping of title at the jurisdictional sub-registrar of assurance’s office.
- In case of development rights, the power of attorney and development agreements have to be executed in the seller’s favour by the owners.
- The registration of the Khata should be in the seller’s name.
- Details of any litigation which is ongoing, pending or happened in the past over the property.
- The original title documents should be available with the property seller.
Who is the seller?
This is a very important question indeed. You should always verify the identity of the developer/seller of the property. Keep these pointers in mind:
- The nationality and residential status of the property seller in case it is an individual.
- Identify and verify all owners in case of jointly held property.
- Verify the documents of any company/firm/society/partnership firm/trust if that is the case.
- There should be court orders allowing the sale of the property and a guardian should be there in case of a minor/person of unsound mind owning the property in question.
Land use, approvals and conversion
You should always check whether the property stands on agricultural land which is restricted from being used for residential/commercial development and purchase by non-agriculture workers. Also check for the following:
- Master Plan and zoning plan.
- If actual usage varies from zoning notified, orders have to be garnered for change of the land use from the Town Planning Authority.
- Layout and building plans should be approved by municipal authorities.
- Government approvals, regulatory and statutory approvals.
- Project approval and registration under RERA.
- Clearances for fire safety, water, sewage, electricity and environment friendliness.
Other key factors to consider
- Occupancy certificate should be provided.
- Property taxes should have been paid for the property and this can be verified with the municipal authorities.
- Encumbrances must be verified through searching at the registration office.
- Physical verification of the property to ensure that it meets everything stated by the developer.
- Boundaries of land and common areas along with amenities should be ascertained carefully.
- Registration and mutation of property is a must once you obtain possession of your apartment.
- Builder-Buyer Agreement should have mutually agreed upon terms and conditions without any irregularities.
- Track record of the developer including projects delivered so far.
- Reputation of the development company or individual in question.
- Average price per sq. ft. in the area where you are buying your apartment (compare it with what you are paying).
- Charges and other fees for maintenance, club house, floor rise and other costs must be mentioned in the agreement.
These are some of the vital things to keep in mind in case you are choosing a new apartment or even an independent home. These legal aspects should be carefully understood and checked at the very outset. This will save you a lot of trouble in the future. This checklist for new homebuyers will help you take the right decision without a doubt!