The Legal Checklists

Owing a house in your homeland is definitely a wonderful thing. However, one needs to be careful while buying a property to avoid falling into legal hassles. Before buying a property an NRI must get certain documents verified.

List of documents to check before buying your home:

  • Sale Deed: This will be the core legal document that will act as proof of sale as well as the transfer of ownership from the buyer to a developer. This should be registered compulsorily. Also, before executing the sale deed, you must check whether the property under deal is bearing a clear title.
  • Title Deed: This is especially applicable when you are buying a plot from a seller. Check if the deed title is in the name of the seller and he has the full right to sell it. Insist upon looking at the original and not just a photocopy.
  • Approval Plan of Your Building: Any building owner must obtain an approval plan from the concerned authority, either from the jurisdictional commissioner or any other officer who has been authorised by the commissioner.
  • Completion Certificate: This will be issued by the municipal authorities stating that the building is in compliance with rules and is built according to the approved plans. This is very important at the time of purchasing a house.
  • Occupancy Certificate: An inspection will be performed by the authorities, when the builder is applying for this certificate, in order to ensure that the building meets all the norms that are specified. In simple terms, the certificate would certify you that the project is ready for occupancy.
  • Encumbrance Certificate: Before buying any land or house, it is important to confirm that the property does not have any legal dues.
  • Obtain an encumbrance certificate from the sub registrar office where the deed has been registered, stating that the said land does not have any legal dues and complaints.
  • You can check the encumbrance certificate of the past thirteen years.
  • Conveyance Deed: The word conveyance means the transfer of ownership or interest in real property from one person to another by a document, such as a deed, lease, or mortgage. In India, transfer of property or rights in immovable property is governed by the Transfer of Property Act, 1882. For the transfer of any immovable property or rights in immovable property, it is necessary to execute a conveyance deed.
  • The power of attorney: It is advisable that an NRI should give the power of attorney to an Indian resident who is trust worthy. In case the NRI is not present in India for the legal formalities, the trusted person can complete all the formalities.
  • After the agreement is drawn, you must get it checked by the lawyers for any loopholes.
  • Before getting the possession of the property, if you are paying an advance, then you must document it in the form of an agreement or a memorandum of understanding.
  • To get details of all your tax liabilities you must consult a tax consultant.
  • Always make a safe deal

Whenever an NRI plans to invest in real estate, he should go through the proper channels, either through a friend or relative to ensure the authenticity of property.

He can also approach through property exhibitions and seminars to choose a right property. A reputed developer can provide a clear title property free from a lawsuit. These developers will also take care of maintenance of the property after purchase as well.