Property and land investments are capital intensive, meaning any mistake made during the buying procedure can result in expensive and troublesome issues for the buyer later on. That’s why before signing paperwork and choosing a property, you need to exercise caution and handle documents carefully. With the right legal advice, scrutiny of documents, and verification of relevant info about the land and properties, you can ensure your investment is secured.
With that in mind, here are the necessary steps and documents you need to examine before signing a deal to ensure the buying process proceeds without problems.
Have Property Documents Prepared
The first step in the home buying process is to ascertain property or title with the seller, its nature, its marketability, and the ability of the actual seller to convey clear and marketable titles that are free from encumbrance. Buyers need to look for the property’s title documents, ranging from the government order for the grant to the culmination of vesting of the property with the seller—alongside the nature of the title to see if it’s freehold, leasehold, or development right.
You need to also look for paperwork or documents from a land or geo surveyor to see the property’s written description, the street address, the location of buildings, and adjacent structures. In case the seller is claiming development rights to the property, the development agreement and power of attorney should also be given to you, giving you exclusive rights.
Finally, every title document from the office of the jurisdictional sub-registrar of assurances, any information on previous or pending litigation, and registry documents of the property’s seller should be provided to you.
Identify Seller Identity
Like verifying the title to the land or property you plan on buying, you need to identify the seller’s identity and see if they have any conditions affecting their ability to convey the land or property they’re selling to you. Factors you need to verify are the seller’s resident status and nationality, the identification of all owners if the properties are held jointly, and where the seller is situated.
Plus, you should also look for sale permits, court orders, and appointed guardians to see if a suitable individual held the properties.
Receive Construction Approvals
For buying land with pre-constructed buildings, you need to scrutinize the structure or layout plan sanctioned by the local authorities alongside approvals provided by the government for providing infrastructure facilities, all the necessities. These include water, sewage, electricity, and fire safety approval.
Get Conversion and Land-use Permissions
With the ever-increasing urbanization and emergence of revenue properties with urban conglomerates, permission to convert properties for residential use has become vital. That’s because multiple local laws restrict the purchase of agricultural properties by non-agriculturists. That’s why as a buyer, you need to examine the “Master Plan” and see if the property is developed abiding with the zoning plan, ranging from residential to open spaces.
However, remember that the actual use is different from notified zoning, and receiving orders from the local Town Planning Authority permitting land-use changes is mandatory.
Ask for An Occupancy Certificate
Sellers must get the occupancy certificate from competent authorities before conveying the land or property. Use of these two without obtaining an occupancy certificate can expose you, the buyer, the several penalties under applicable building by-laws, aside from the risk of demolition.
Verify Tax Payment Status
Not paying for property taxes can constitute charges on the property, depleting its marketability. That’s why buyers need to verify with their local municipal authorities that the seller hasn’t defaulted on payments on property taxes. So always ask for receipts of all utility bills from the seller since once you get the deed for it, you’ll be liable to pay all pending bills against it.
If you’re buying a property or land from a company, they’ll reveal information if either has a registered encumbrance. It’s essentially the rights, interest, and general legal liability on properties and lands that doesn’t prohibit passing titles to them but diminishes their value. As a buyer, you can issue a public notice in different channels, including through newspapers, before completing transactions, calling for claims from interested third parties, if applicable.
Purchasing a home is a vital milestone for most people. However, the procedure can be overwhelming since not many people know what to expect, making the decision process overwhelming yet pressing at the same time. Remembering the requirements mentioned can make the process more seamless, allowing you to grab your dream home at a fair price in no time.