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Title search

(Querist) 15 January 2009 This query is : Resolved 
Dear Experts,

Please advice what all documents are required to be checked before purchasing commercial property from any Builder.

Regards,
Kumar
J. P. Shah (Expert) 15 January 2009
IT VARIES DEPENDING UPON TYPE AND STATE OF PROPERTY. EACH STATE HAS DIFFERENT SYSTEM. BEST OPTION IS TO HAVE A SEARCH CONDUCTED BY A REPUTED LAWYER AND IN HIS REPORT HE WILL INDICATE LIST OF PAPERS TO BE COLLECTED FROM SELLER. U CAN GET NAMES OF REPUTED ADVOCATES ON PANEL OF A BANK BY CONTACTING LOCAL BANK MANAGER.
AEJAZ AHMED (Expert) 15 January 2009
Dear Rakesh,

When buying commercial or residential property you would need to check for the following documents:

(1) You have to look at the approved layout plan, approved building plan, ownership documents, carryout search.

(2)Market Trends about prevalent rates of property in the vicinity and last known transactions.

(3) Identify the property you wish to purchase.

(4)Formulate commercial terms.

(5)Distinguish between terms and conditions of the contract which are negotiable and those which are fixed e.g. price, payment schedule, time of completion etc.

(6)Avail of services of magicbricks.com. List your requirements with a reputed broker.

(7) Ask for photocopies of the all deeds of title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any, on the property must be cleared before completion of purchase of the property. The title of the Vendor to the property must be clear and marketable.

(8)Finalise commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.

(9) Ascertain outgoings to be paid for the property i.e. property tax, water and electricity charges, society charges, maintenance charges.

(10)Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the (a) society (b) the income tax authority (c) Municipal Corporation (d) the competent authority under the Urban Land Ceiling and Regulation Act (e) any other authority.

(11)Will you require a loan for making payment of the consideration amount. Ask for a pre-approval letter from the lending institution.

(12)Permanent Account Number of Vendor and Purchaser under Income Tax laws Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration

(13)After payment of the entire sale price, take over legal possession of the property alongwith documents of title in original from the Vendor of the property

(14)Change name of the holder of the property to the purchaser in the records of the society, electricity company, municipal corporation, Index II etc.

Further, Contact an advocate before to
finalise the purchase a property so that he can advise you.
PALNITKAR V.V. (Expert) 15 January 2009
As usual advise given by Mr. Aejaz is complete and exhaustive.
Rakesh Kumar (Querist) 16 January 2009
Thanks to all.


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