Real Estate Investment could tear down or make somebody’s future depending on execution of one’s Investment in a wiseful manner. Purchasing a new house is a minefield full of “I don’t know” and it’s a crucial decision involving minute technicalities that needs to be nurtured in the right direction. Here we have with us Sachin Daga, Managing Partner of DAGA Legal to talk about the nitty-gritties involved in purchasing your property as buying a house might also involve taking good amount of loan, for which one needs to be extra cautious.
MP: Why is the registration of a property vital?
SD: Registration of the property is vital not only because it gives the buyers an assurance or proof of the transaction for the records as a person is considered lawful owner of a property only after its registration. Section 17 of the Indian Registration Act, 1908 makes it mandatory to register the document regarding transfer, sale, gift or lease of a property. A property would be considered invalid unless the sale deed is duly stamped and registered.
The buyers before registration should make sure that the property has got clear and marketable title which is free from all the encumbrances. Additionally, the norms have been strengthened in favour of the buyers after looking into the constant defaults made by the Builder. The purchasers/consumers can approach for justice not only through the Consumer Forums or RERA but also under Insolvency regime, depending upon the nature of dispute thereby claiming financial recourse from the builders. It is highly recommended to the buyers to obtain occupancy certificate after the completion at the time of taking the possession to get the complete title of the property. With immense disputed properties in Mumbai, it is equivalently important to be aware that the property is undisputed in nature.
MP: How important it is to do the due diligence of re-sale property?
SD: Verifying the rightful owner of the property diligently is one of the most important attribute before obtaining the title. Due diligence gives the benefit of doubt. Decades ago, title search required an onsite visit for verification but with advancement in resources, it has now become easily accessible to vet the land and seek rightful possession of the property from examining the Documents available with the Sub Registrar of Assurances and provided by the Client. The mandate documents required for the due diligence are including but not limited to:
l Sale Deed with Transfer documents
l Registration and Stamp Duty payment receipt
l Index II certificate
l Lease Deed documents with the society
l No Objection Certificate from CHS
l Last paid Maintenance Bill or No Dues Certificate
l Last paid Electricity and Water Supplier Bills
l Last paid bill of PNG (Gas Pipeline) if any.
l Possession letter from the builder stating Full Occupation certificate
l Payment receipt of earlier payments Share Certificate or the Form submitted
l Reservation of parking Letter and its Transfer procedure
l Check on Arrears not payable by the current owner
(Sachin Daga is a practicing lawyer in the Bombay High Court who can be reached: firstname.lastname@example.org or at (022-2857 3870) for answering your legal queries.
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