Check these out before buying property

New Delhi: If you’re buying a new house, be cautious! Without checking these three parameters, you might regret your purchase.

Get complete information about the ownership rights of the property that you are buying. If you’re buying a flat in a society, ensure there are no legal disputes regarding the land on which the society is built. And make sure there are no pending taxes on the property being purchased.

If you don’t know these things, you might end up like Gaurav, stuck without guidance. First, let’s see what happened with Gaurav. He pieced together all his savings and paid off the home loan EMIs to buy a flat. He had taken a home loan of around 25 lakhs.

While he was preparing to shift to his new house, he found out that there was a court case going on regarding the land of the building, which was something the builder had not disclosed to him. Now Gaurav is unable to get possession of the flat. Caught between loan installments and rent, he is now struggling.

What happened with Gaurav is a common scenario these days. According to the National Crime Records Bureau, in the year 2022, there were more than 7,000 cases related to land or property disputes in the country. It’s evident that many of these cases might be related to property transactions as well.

To avoid falling victim to a fraud while buying a property, there are some necessary checks to keep in mind. Typically, when you apply for a home loan, the bank conducts its due diligence like ensuring there are no legal disputes regarding the property, no pending dues of any kind, etc.

However, even though it seems foolproof, there’s no guarantee. Banks can also make mistakes. Therefore, along with the bank’s checks, you should also get the property documents checked by a lawyer. It may cost a bit as there is a fee involved, but this helps you get a complete profile of the property. This includes documents related to ownership rights such as Sale Deed or Registry, Title Deed, Encumbrance Certificate, Mutation, etc.

Title Documents include Lease Deed, Sale Deed or Registry and documents like Title Deed that establish ownership of the property. They indicate who the real owner is. Title Deed also reveals the previous owners of the property along with the current owner. Whereas, the Encumbrance Certificate indicates if there are any legal or financial liabilities on the property.

If you’re buying an under-construction flat from a builder, check for the project’s RERA registration, building plan, layout approval and No Objection Certificate from local authorities. In the case of buying a plot or land, you can get it checked with the local Municipal Corporation or relevant authority.

In case of buying a resale property or old house, besides the Title Document, also consider other aspects such as house tax, utility bills like electricity and water. If the previous owner hasn’t cleared the bills, you might have to pay them after buying the house.