Wednesday 5 February 2014

Check List for Purchase of New and Second Hand Apartments

GENERAL CHECK LIST FOR PURCHASE OF VARIOUS TYPE OF PROPERTIES

Normally Advocates conduct title investigation verification to their Clients. In many instances, intending Purchasers (incl buyers of Apartments) who avail loan to Purchase Properties do not know what documents should be possessed by them since they feel that the Bank which lends loan to them will take care of the required title documents. This is not a disputed fact. However in the better Interest of the buyers of Property, the following are the general documents which should be verified or scrutinized (rough broad parameters)

I - For Purchase of New Apartments
a)      Check Preceeding Parental Documents for last 30 years
b)      Check Original title deed documents in the name of the present owner
c) Check latest Patta/Pahani/RTC/Khasra/Khatian/Khatauni/Jamabandi/Thandaper/7/12 Extract (whichever land revenue record applicable in the respective state) issued in the name of the present owner
d)     Check Field Map Sketch (FMB Sketch) of the land
e)  Check Copy of Layout Proceedings issued by the appropriate authority along with layout plan copy with seal of the appropriate local body and permit issued by the appropriate authority (for layout or scheme) – wherever applicable
f)     Check Copy of Gift Deed executed in favour of local body (for Open Space Reservation and Roads) in case if the layout or scheme land exceeds certain specific area prescribed by the respective state – wherever applicable
g)      Cross Check the genuineness of present owner land revenue record online (if available in respective States)
h)      In case if the Builder is not the owner, check the Development Agreement entered into between the Builder and the Owner and also check whether the Owner has granted Power of Attorney in favour of the Builder. Ascertain the extent to which the owner has given power to the Builder (whether to sell all the developed Flats or only specific number of Flats)
i)     Obtain Certified Copy of the latest title deed by which the owner had acquired the title to the Property from the records of the concerned sub registrar office having jurisdiction over the Property to be Purchased (Genuineness of any document can be ascertained only when certified copy of the same is obtained from the records of Sub Registrar Office and compared with the Original)*
j)        Obtain Permits issued for construction of building along with copy of sanctioned building plan along with seal of the appropriate authority
k)      Check whether the total number of Apartments Constructed tallies with the number of Apartments mentioned in the Permit issued for Approval. The General Thumb Rule is that for each Apartment, there will be only one Kitchen. Count the total number of Kitchens shown in the Approved Drawing Plan and this will reflect the total number of Apartments for which permission had been issued for Construction.
l)        The Builder/Developer should not retain any Undivided Share of land (unless any Flat is allotted to him) nor should have any terrace rights over the constructed building. Check whether the Construction Agreement is free from these Clauses.
m)    For Societies (mainly in the State of Maharashtra), check Conveyance Deed executed in favour of Society/Condominium concerned. Also Check the Occupancy Certificate (or) Allotment/Possession Letter issued in favour of the member of the Society along with the Share Certificates issued by the Society. Also check Membership Details in the Society.
n)      In case if any loan is availed from any Bank/FI by the Builder/Developer, ensure that NOC for Sale of the Apartment is obtained from the concerned Bank/FI. Also ensure that the payment transactions to the Builder/Developer are routed only through that Bank/FI which had granted loan to the Builder/Developer
o)      Obtain Non Encumbrance Certificate (Computerised or Manual - wherever applicable) for last 30 years

II - For Purchase of Second Hand Apartments
a)      All the Check list mentioned for Purchase of new Apartment
b)      Obtain latest Original Property tax receipt, Water tax receipt and Electricity Charges receipt issued in the name of the present owner
c)      In most cases for Purchase of Second Hand Apartments, the Parent Documents will be Xerox and only the Original Sale Agreement and Original Construction Agreement executed with the Builder/Developer and Original Sale Deed document executed in favour of the first Purchaser shall alone be available.


How to detect property fake documents?
How to ascertain title genuineness of land, Apartments and other kind of Properties?
How to verify online ownership of land in various states in India?
How to know Building Approval Procedures followed in Various States in India?


Book titled `PROPERTY REGISTRATION, LAND RECORDS AND BUILDING APPROVAL PROCEDURES FOLLOWED IN VARIOUS STATES IN INDIA’ will have answers for all the above said queries. (Author: G.Shyam Sunder, Advocate, Chennai, Ph:09841136901)

Book available in:
Flip Kart (Online)
Land Mark (in all major cities in India)
Chennai – Sitaraman & Co (044-28111516, 28117069), Higginbothams and Odessey
             Sri Vidya Devi Publishers (044-24936193/9841136901)
Coimbatore – Odessey (Brooksfield Mall)
Bangalore – MPP House (080 – 41136866, 22260706)
Hyderabad – Asia Law House (040 – 24742324)
Mumbai – Students Book Centre (Snow White Publishers – 022 – 22050510/22080668)


The Hindu – Habitat (Property Supplement) – 14th Dec, 2013 - Book Review

Economic Times – 4th Dec, 2013
Only a few states follow good property registration procedures: G Shyam Sunder
G Shyam Sunder, a Chennai-based advocate, points out to the benefits of standardising procedures.
This article can also be accessed if you copy and paste the entire address below into your web browser.
http://economictimes.indiatimes.com/markets/real-estate/news/only-a-few-states-follow-good-property-registration-procedures-g-shyam-sunder/articleshow/26851644.cms?intenttarget=no&mailtofriend=yes

Times of India – 1st Dec, 2013

The New Indian Express – 21st Nov, 2013

Business Line – 23rd Nov, 2013

Nanayam Vikadan – 15th Dec, 2013 (leading Tamil Financial Weekly)

Dinamalar – 19th Nov, 2013, 19th Dec, 2013 and 12th Jan, 2014 http://www.dinamalar.com//district_detail.asp?id=852526&dtnew=11/19/2013

1 comment:

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