Real Estate is one of the safest forms of investment, appreciating in value and beneficial in the long term. But many people shy away from it due to the lack of legal awareness. Real Estate can involve pages and pages of legalese that can be overwhelming for anyone.
Here are the top legal aspects of real estate purchases from the top property developers in Chennai.
Do not rush the process
Before investing a lifetime of savings in property, it is essential that there is a clear understanding of the legal transactions involved. There is no point in rushing the process and making hasty decisions. You are going to buy your dream home and you want the purchase and the future to be hassle-free. The idea of closing the deal fast, especially to avail of any short-term discounts, might be appealing. But remember this can land you in legal trouble later if you have not done your due diligence.
Let us see which documents need verification and what terms you need to look out for in real estate.
Verify the Title Deed
The Title Deed or Sale Deed is the most important document in a real estate transaction. It makes the purchase of the property and the transfer of ownership official. It is legally binding. The title deed must be free of any discrepancies and redundancy. This is crucial as the particulars of this document influence the decision of any legal disputes that may arise.
The Title Deed is held at the Sub-Registrar’s office under whose domicile the property in question is located. You can verify the legal status of the property by perusing this document. Make sure you also physically check the documents in possession of the property developers in Chennai. This is essential in figuring out if the land or building has been pledged or is under legal dispute. It must explicitly state that the developer or the members of the Joint venture are the sole owners of the property.
Ask for the Property Tax Receipts
Ownership of any property comes with a Property Tax levied by the government. This needs to be paid every financial year and ensures the continuity of ownership. Before selling the property, the developer must have paid the property taxes incurred in the period of their ownership. In case the developer or seller has failed to do so, the liability of paying the accumulated taxes falls on the current owner, which would be you.
So, before you make a decision to purchase any property, ask for the property tax receipts. Make sure that they are up to date and that there are no residuals to be paid. The details of the same can also be obtained at the Sub-registrar’s office. You can run an independent check without involving the developer.
Encumbrance Certificate verification
The term ‘Encumbrance’ itself can seem intimidating. It is however a very important document that allows insight into the legal ramifications involved in the property. It provides references to any liabilities in the property in terms of mortgages or loans taken against it. It gives a complete history of payments made towards clearing the debt and all other transactions toward the property.
The legal history and the Encumbrance Certificate are also available from the Sub-Registrar’s Office. A simple request form will give you access to the details. You can make informed decisions on the purchase instead of blindly taking the developer’s word for it.
As one of the top property developers in Chennai, we have a dedicated legal team that verifies the authenticity of all land that we acquire. We focus on buying dispute-free properties or employ the means to clear the disputes before developing them.
Verification of No Objection Certificate
A lot of the land that is sold for construction purposes was earlier classified as Agricultural land. When the original owner sells the land to a developer, they must get a Conversion certificate that explicitly states that the agricultural land is now converted into land that has been cleared for development. An associated document is the No Objection Certificate that authorizes the developer that they are cleared to begin development activities with no objection from the concerned parties.
Irrespective of where the land is located, no development activity for construction can commence before receiving the NOC and the conversion certificate from the Planning Authorities. Ask for the same from the developer before buying the property. Finalize the purchase only if the NOC and Conversion certificates are in order.
Mandatory RERA Registration
The Government of India has brought into effect new Real Estate law since January 2020. It states that all property developers must register their ongoing and upcoming projects under the Real Estate Regulatory Authority (RERA) Act.
This is mandatory to ensure that the projects meet the current Building regulations and laws. It is also necessary for the developer to show financial accountability to execute the project to completion. It calls for complete transparency in all processes and transactions, removing hidden costs. The builder cannot charge for an extra area than the actual built-up area. The building must also remain defect-free for a minimum period of 5 years from handing over. RERA registered properties are dispute free and will be delivered with little to no hassles and are safe investments. Specifically, check if the developer possesses RERA Registration instead of blindly believing Ads like – Independent house for sale in Mogappair.
With a huge chunk of your money going into property purchases, always be aware that it needs a lot of legal verifications. You cannot afford for your investment to go wrong. Raunaq Foundations is one of the best property developers in Chennai. Our legal and sales teams will guide you through the purchasing process, answering all queries in a completely transparent manner. We have premium villas for sale in Mogappair that are set in a cozy residential community equipped with all the amenities necessary for a comfortable life. Get in touch with us at +919884243333.
