Buying a plot is highly capital intensive requiring huge investment. Any mistakes made during buying a property can be a cause of trouble. It is therefore very important to know the basics before buying a property, especially a plot of land. There are certain important documents which should be examined carefully and with proper legal advice and help. Here are five important facts that will ensure the right verification of relevant information pertaining to the property.
- Verify the title and ownership of the property
A buyer should always start by exercising due diligence in checking the title deed with the seller. These checks include the nature of the title, the marketability of the deed and also a clear marketable title, free from encumbrance. For documents of 12 to 30 years, the seller must be called to provide the following other documents and information such as title of the property, nature of the title, title documents registered at the office of the jurisdictional sub-registrar of assurances, original title documents with the seller and any information on pending or past litigation.
- Verifying the identity of the seller
Once the title deed of the property is verified, it is important to verify the identity of the seller as well. This should also include verifying any specific conditions, governing the ability of the seller to convey the property such as the residential status, nationality of the seller, organization of the seller (if the seller is a company, trust, partnership firm, society, etc.) and also checking the orders from the competent court which permits the sale of the property.
- Conversion and land-use permissions
Not all land available in a city can be used as a person likes. As urbanisation is increasing, conversion of property for non-agricultural use assumes crucial significance. Different states have different laws when it comes to purchasing agricultural and non-agricultural property and how the land can be used. This requires the buyer to examine carefully on the permission to develop the property in accordance with the zoning plan – such as residential, commercial, industrial, public/semi-public, parks and open spaces, etc.
- Occupancy certificate
The buyer should compulsorily check and obtain an occupancy certificate from the competent Government authority before conveying the property. Without obtaining an occupancy certificate, use of the property amounts to penalty under the legal system and also risks the demolition of the property.
- Status of tax payment
Many sellers can default on the payment of property taxes. Non-payment of the property taxes will impose a charge on the property which will affect the marketability of the property. It is important that the buyer check all the tax history and verify the same with the municipal authorities that the seller has not defaulted on payment of property taxes.