Property related
pankaj mahajan
(Querist) 06 August 2012
This query is : Resolved
sir ,
i have selected one property it mean flat and this flat amt is 12lac (6 lac cash+6 loan amt)and other expences and this project approved by uco bank (gov.under taking) and this property are in gram panchayat area .
before buying this property what precaution and legal concern i will check
pls advise sir....
ajay sethi
(Expert) 06 August 2012
contact a local lawyer . let him got hrough papers of property and advise . if it is pre approved by nationalised bank you are safe
Raj Kumar Makkad
(Expert) 13 August 2012
What should you look for while buying a property? Generally, buyers focus on the price, area, number of rooms, location, possession date, etc. There are many other points, such as finances of the builder and legal clearances to the project, that are equally important.
WHEN BUYING A READY-TO-MOVE-IN PROPERTY...
A complete legal due diligence has to be done while buying a ready property.
"Checking legal clearances, payment of municipal, electricity and water charges, and property credentials in the local registrar's office is a must, apart from occupation and completion certificates," says Vineet K Singh, business head, 99acres.com.
Completion certificate and occupation certificate show that the property meets local development rules and are usually the basis on which individual connections for electricity, water and sewerage are given.
Hence, it is important to verify that these have been acquired from the authorities. In addition to this, just as in under-construction properties, check the parent documents of the land, development approvals, transfer of development rights to the builder, etc, before signing the papers.
"The market is going through a tough time. There is no liquidity, property prices and interest rates are high, the global economy is jittery and the domestic equity market is erratic, making it a challenging environment for property developers. In this scenario, it makes sense to do a financial health-check of developers and their projects before investing," says Vineet K Singh, business head, 99acres.com, a property portal.
Sadly, aspects like the reputation of the builder, the status of the land title and the price break-up-which should be key to arriving at a decision-do not figure on buyers' checklists. Here, we list some points and how you, as a buyer, should look at them.
Builder's Reputation: As a buyer on a tight budget, who is probably taking a home loan, properties under construction are more attractive than the ready-to-move-in ones. They are more affordable and offer flexible payment options.
However, the risks are also higher, as timely project completion will depend on the builder's resources and efficiency. Therefore, when buying an under-construction property, it is important to check the developer's delivery record.
Remember that lack of transparency is a good enough reason to delete a project from your short list.
Past performance: "Track record is one of the most important factors to be considered while finalising a property. A builder with a good reputation and long experience is likely to be a long-term player and one can expect it to have a professional approach with proper systems and processes in place," says Ganesh Vasudevan, vice president and business head, Indiaproperty.com, a real estate website.
Current market prices of a developer's past projects are a good indicator of its standing in comparison with peers. If you are buying from a new builder, do a more thorough investigation.
Internet makes research easy. Usually, a lot of information is available on blogs, discussion forums and property websites.
