Back to blogging after a bit - have been getting good amount of readership on the blog but not a lot of feedback. It means that either the blog doesn't have useful content or it does answer all of the questions readers have in mind and you don't have any more questions! A one liner note about the usefulness of the blog will help me keep this going. So, please do drop a line in comments if you are a reader and found this place useful (or not!) ...
Took a break while settling down on a place to stay and gained more experience in this area, which I would like to share.
This is a tough cookie! You might have heard several stories about the process and the complexities but you have to go thru' one to realize why the process is so clumsy. Basic issue is - there is no standardization of the process and the template that is used for paper work. It is just copied from one to another and buyer is at the full risk if the paper work is wrong. Authorities don't worry about the content of the paperwork - as long as you pay the fees and they get their 'cut', they are happy to register.
I am sure a 'good' (read, 'not easy to find') lawyer or a 'good' real estate agent (read, 'non-existant' in Bangalore!) can help to make sure paper work is right but you will only get to know how good they are once you know the process and accurate paperwork needs. You might ask - if authorities are not checking, what is the big deal about accurate paper work? It is the 'buyer beaware' of scenario. Once you buy a property, it is unlikely that authorities will bother you(especially, if you are buying a already constructed home. However, case of land is different - you will need to get approvals on the construction plans and it does happen that they don't approve the plans. However, you need to make sure somebody will not make a claim down the line on your property, claiming they have the land rights. Also, if you want to sell down the line, the propspective buyer will look for these documents and if your papers are not in order, you are stuck with a property that you can't sell.
Let me first list down the absolute list of documents that you need from a seller before you decide to buy a property. I will get into the details of what each one is in my next blog entry. Since my experience is with already built home, some of these may not be relevant for apartments or land. This is NOT a legal advice but just to help you with getting familirity with paper work. Since you are investing a good amount of money, it is always well-worth a good legal advice.
- Khata in the name of the seller : MUST be a original
- Sale deed, in the name of the seller : MUST be a original
- Parent sale deeds : MUST be in originals
- Tax paid receipts : MUST be in original
- Encumberence certificate : MUST be in original
- Power of attorney documents
- Approved construction plan(blueprint) : MUST be in original
- Land mutation records
- Land Conversion records
Took a break while settling down on a place to stay and gained more experience in this area, which I would like to share.
This is a tough cookie! You might have heard several stories about the process and the complexities but you have to go thru' one to realize why the process is so clumsy. Basic issue is - there is no standardization of the process and the template that is used for paper work. It is just copied from one to another and buyer is at the full risk if the paper work is wrong. Authorities don't worry about the content of the paperwork - as long as you pay the fees and they get their 'cut', they are happy to register.
I am sure a 'good' (read, 'not easy to find') lawyer or a 'good' real estate agent (read, 'non-existant' in Bangalore!) can help to make sure paper work is right but you will only get to know how good they are once you know the process and accurate paperwork needs. You might ask - if authorities are not checking, what is the big deal about accurate paper work? It is the 'buyer beaware' of scenario. Once you buy a property, it is unlikely that authorities will bother you(especially, if you are buying a already constructed home. However, case of land is different - you will need to get approvals on the construction plans and it does happen that they don't approve the plans. However, you need to make sure somebody will not make a claim down the line on your property, claiming they have the land rights. Also, if you want to sell down the line, the propspective buyer will look for these documents and if your papers are not in order, you are stuck with a property that you can't sell.
Let me first list down the absolute list of documents that you need from a seller before you decide to buy a property. I will get into the details of what each one is in my next blog entry. Since my experience is with already built home, some of these may not be relevant for apartments or land. This is NOT a legal advice but just to help you with getting familirity with paper work. Since you are investing a good amount of money, it is always well-worth a good legal advice.
- Khata in the name of the seller : MUST be a original
- Sale deed, in the name of the seller : MUST be a original
- Parent sale deeds : MUST be in originals
- Tax paid receipts : MUST be in original
- Encumberence certificate : MUST be in original
- Power of attorney documents
- Approved construction plan(blueprint) : MUST be in original
- Land mutation records
- Land Conversion records
Mohan, thanks for providing good info. This really does helP
ReplyDeleteRamesh
thank you...
ReplyDeleteMohan, you now have a follower :)
ReplyDeletethanks im in the middle of the process..
ReplyDeleteThank you Mohan for putting together this useful information. While I am still not decided whether to buy a apartment or land, this blog gives some perspective on advantages of buying an apartment.
ReplyDeleteIt is very useful Mohan.. I am in the process of buying one in Bangalore..
ReplyDelete