Many assume that buying
properties in India is simple. All you need to do is take a look at the
property, determine its market value, negotiate the price with the land owner
and register the documents. However that is not all. The most vital phase that
many fail to check is the documentation process and the history of the
property. Investing in real estate can be like skating on a thin layer of ice,
you never know when the ice may break and you may fall inside. Like any other
industry, there are many loopholes in real estate as well. The
best way to avoid confusion and prevent future distress is by verifying the
documents.
It is important to check the
title deed of the Indian property that you buy. Any asset you invest in should
be in the name of the seller. The right to sell the property should be reserved
with the owner alone. It is also essential to verify if the seller has provided
entry access to others through the land. The seller should be free to disclose
all the information about the property. This includes the development
agreements, sale deed, legal transfers or inheritance certificate of the
property and other related documents. Lack of transparency in communication by
the seller should not be encouraged.
The India property that you
decide to invest in should be legally approved by the government. There have
been cases in the past where buildings have been constructed without proper
approval from the government authorities. These structures were then demolished
and the owners were seized the ownership over these properties. The building's
layout should be approved; any deviation in the layout will create future
issues. The land or house you choose shouldn't be mortgaged for loan. If it has
been mortgaged before, then ensure that all the dues are cleared and collect
the documents for the same.
Get the encumbrance certificate
issued from the sub-registrar office to ensure that the property that you buy
is free from legal bonds. The property should also be free from debt and
liabilities. Request the seller to produce documents on the history of the
property. Holding documents that prove the property is debt free will serve as
defense. Almost everyone is interested in investing in a commercial property
in Mumbai. Thanks to its increasing demand and the great revenue returns that
has encouraged many to invest their hard earned money on real estate. Though
investments on real estate are always profitable, it is important to verify the
documents and the credibility of the builder. And the best way to get this done
is by hiring the service of a legal expert.
