The purchaser should check the following the following documents before buying the property.
- All Sale /conveyance deeds in respect of the property concerned giving clear flow of title to the property wherein the last transaction is between the developer and the erstwhile owner. All documents must be registered documents, as without registered documents, title in the property does not pass on to the purchaser, under Law.
- If the land is not acquired by outright purchase, then registered Joint Venture / Joint Development Agreement between the land owner and the present developer. Registered power of attorney given by the land owner to the developer empowering the developer to develop the property and sell the flats constructed thereon.
- All permissions / sanctions obtained by developer which include
- Non Agricultural (NA) permission of land
- Approved plan
- Commencement Certificate and Intimation of Disapproval (CC & IOD)
- Latest revenue records / property cards mentioning the name of the developer as last owner of the property.
- If the land is agricultural land, then 7/12 extracts and mutation extracts connected with the property showing the change in holder of the land. Class of holding of land to be Class I land entitling the developer to deal with the property in any manner whatsoever.
- Occupation Certificate in respect of the building in which the flat is constructed.
- Latest property tax bill and payment receipt in the name of developer evidencing the municipal records in respect of the property to be in the name of the developer.
- The project is RERA registered and all details of the project including flow of title, all technical certificates are uploaded by the developer on the respective State RERA website and is complying with the same.
Encumbrance certificate is the certificate issued by a practicing advocate and / or by Sub Registrar of Assurances giving the details of charges / discrepancies in the title of the property owned by the developer. The encumbrance certificate should be obtained for a period of 40 years.
Market value of property means the value at which the property is available in the market for sale. The stamp duty payable on the agreement value and market value of the property, whichever is higher.
Free hold property means the property which is free from all encumbrances and the owner of the property is entilted to deal with the same wiithout any restrictions. There are not limitations, permissions required from any authority to deal with / develop the propety. The ownership is full and unconditional with no tenancy / leasehold / easementay rights on any part of the property.
Gift of an immovable propety is transfer of ownership of flat without consideration. The gift deed is required to be executed and registered with the Sub Registrar of Assurances after paying the stamp duty as per the applicable Stamp Act.
The seller should disclose all material facts in respect of the property including any defects in title / lacunas in respect of the property to the buyers. Tahe seller should construct the building and all amenities as per the approved plans and sanctions provided by the respective authorities and hand over the possession after obtaining occupation certificate within time as mentioned in the agreement for sale and disclosed on RERA website. The seller should also form Cooperative society/ condominium/ association of residents / private limited company of the residents. The seller shaller execute and register converyance / Deed of Declaration in respect of the property concerned and complete its responsibilities of handing over title to the property in the name of the society/ condominium.
The buyer should pay the consideration as agreed in respect of the flat and regisgter the agreement after payment of requsite stamp duty – registration charges. After becoming the owner of the flat, the buyer shall also beocme member of the society/ condominium formed by the developer and pay requisite charges for becoming shareholder of the society. The buyer shall pay requisite maintenance charges for the flat as decided by the managing committee of society/ condominium.
Any transfer of immovable property is valid under law only if the same is registered with the office of Sub Registrar of Assurances after paying adequate stamp duty and registration charges. The title in the immovable property is passed on to the purchaser only after registration of the same. In case of a document in respect of immovable property is executed but not registered, there is no validity for such trnasfer and the ownership of the property remains with the seller only. On registration of the document, the entry of such transaction is reflected in the revenue records and anyone can find out that if the property is priviously encumbured. Any document which compulsorily required to be registered and is not registered; the same is not admissible in evidence.
7/12 extract is the revenue record maintained at village level by Talathi which contains the details like survey – hissa number of land, area in acres – gunthas, occupants of the land, the land revenue to be collected from the occupants basis the type of land, any encumbrances on the land, mutation entry numbers in respect of all transactions which have taken place in respect of the land. Form 12 mentions about the kind of land, type and number of crops cultivated on the land.
Property card is the reveue record issued by city survey officer of respective zones which gives details of ownership of plot/ flats owned by persons which are registered with the office of Sub Registrar of Assurnaces.
Lease is the right given by the owner to the lessee to hold and occupy the property for a particular period or in perpetuity for consideration of lease rent. Limited title in the property is passed on to the lessee with a right to sub lease the property. License, on the other hand is just a permission to enter and occupy the premises for limited period and for specific purpose which is given only to the licensee. License does not give any rights in the propety to the licensee. The lease beyond a period of 1 year is compulsorily registrable.