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deed

How to verify a title deed

Immovable property cannot be sold by a mere letter of allotment and would require execution of a deed of conveyance

Buying a new house or an apartment will require a buyer to take a few measures to ensure a good title. Immovable property cannot be sold by a mere letter of allotment and would require execution of a deed of conveyance commonly known as a sale deed by the seller in favour of the buyer.

The following checklist will help verify the title:

(i)    The title deed /document is in the owner’s name, issued by the revenue record department under the seal of the tehsildar

(ii)     The owner’s title for the preceding 15 years (at least) shows no encumbrance(s) such as a mortgage existing

(iii)    The property is transferable and heritable

(iv)     The transferor is competent and/or authorised to transfer the property

(v)      The property is freehold.  In the event the property is a leasehold one, the prospective buyer will be required to submit an application to the authority in Noida to obtain a transfer memorandum, which is issued only after verification and whereafter, the purchaser will have to ensure execution and registration of a sale deed. The purchaser will have to check whether the lease rent payable is one time only or on a yearly basis and whether there can be any increase at a later date

(vi)     All receipts etc. pertaining to payment of taxes, electricity bills, and water bills must be checked

(vii)     The buyer could submit an inspection form along with Form 29 to the Sub registrar’s Office, to provide information on the location of the property and the date of original registration of the property.

(viii)   In the case of newly-constructed apartments, it would be desirable to require the builder to offer for inspection and verification of all necessary permission including sanctioned plans and environmental clearance if applicable

(ix)   The next step is to have the sale deed stamped with the requisite stamp duty and submitted to the office of the jurisdictional sub registrar of assurances. The buyer and the seller would be required to be present and complete prescribed formalities

(x)     The final step is to have “mutation” effected in the name of the purchaser by submitting an application together with prescribed an affidavit, indemnity bond, and a certified/ notarised copy of the registered title deed.  The circle revenue office will thereafter issue a mutation letter in favour of the buyer
More>>  Property Buying Tips

Pratap Venugopal is a partner at K.J. John & Co, an advocate firm based in Noida

pre-launch

What to follow while buying pre-launch property

Buyers need to also check out several aspects before putting their hard-earned money in such Residential projects.

Prices of pre-launch apartments  and under-construction stage are no doubt attractive. According to Happy Keys data, average pre-launch prices of flats are 25-30 per cent lower than those nearing completion.

But in this situation, buyers need to also check out several aspects before putting their hard-earned money in such projects.

Cross-checking all clearances

At the top of the list is the necessity to check if the project has got all the required clearances regarding land ownership and construction.

The prices in Noida of pre-launch and under-construction properties is attractive and as the construction reaches completion, rates rise up significantly,” says Rahul Adhirej of Adhirej Consultants, a property advisor and consultancy firm in Greater Noida.

In their enthusiasm at getting an attractive price, buyers tend to miss checking basics such as clear ownership, sale deeds and construction approvals (till which floor). I often go the extra mile and show them the papers and have even recommended them to opt for a lower floor as the one they want has yet to get the approval.

A pre-launch or an under-construction property carries a certain degree of risk. The buyer might face delay in possession if the project is stuck due to certain issues, some of which may be extraneous aspects.

There are other factors too that a prospective buyer should be aware of.

The current tax law

The current tax law states that the benefit of tax deduction on home loans is “not applicable for properties that are under-construction”. The benefits are available only on constructed properties and only if the registration is done.

Title diligence

This is the key as it forms the basis for several legal documents and agreements.

The first step when going in for pre-launch or under-construction property is to ensure clear ownership of the developer/seller sale deed by conducting title diligence,” says Sadhanand Mishra, and advocate and solicitor who specialises in real estate deals.

 

Check out : Checklist For Investing In Pre-launch Property

 

Independent legal assessment

Although a clear set of documents is presented to the buyer at the time of booking, it also makes sense to do an independent assessment using the services of a legal expert specialising in real estate.

Getting an independent assessment and evaluation of all the documents is something the buyers must get done,” says Mishra. “Also, opting for deferred payment made strategically after set targets are completed is a good option. This ensures lesser investment and tracking of progress of the construction, as per the demand letter of the developer.

Acquiring payment receipts

Payment of booking amount and every following amount paid must be made followed by payment receipts. For example, the developer can collect up to 20-40 per cent of the cost of the apartment at the time of booking depending on the payment option chosen by the buyer. And for this, a receipt needs to be given by the buyer.

Knowledge of Ownership Act

Ownership Flats Acts vary from state to state and prospective buyers must check with their legal expert before buying in Delhi NCR. At an average, a developer can collect up to 20 per cent of the total price without entering into a registered agreement for sale. This means it is only after you cross the said percentage that you can insist on a registered sale agreement.

While entering into the agreement for sale, it is essential to ensure that all approvals, right up to the commencement certificate for the property to be purchased, are in place.

How to refurbish your flat

How to refurbish your flat without spending a much

Are you thinking of revamping your space but your pocket isn’t allowing much. Here are some hacks and décor ideas that will transform your home and give it a new look and vibe! These small and inexpensive adjustments can improve the look and feel of your home without breaking the budget.
First of all, look at space. If you live in a fast metro where you are pressed for space, go for white and pastel shades on the walls which will give a sense of openness to the room. If the space is big, you can use dark tones in addition to white and pastels.

 

Check out: 5 Home Decor Ideas for an opulent haven

 

Use wallpapers to save the cost of expensive paints. You can also use trendy decals or wall stickers to give a designer edge to the room. These days the cherry blossom decals are in vogue and are selling like hot cakes in the décor market. It gives a positive vibe to the space and a Zen-like feeling.

Once you are done with the walls, you can use a wide variety of indoor plants to give freshness and verdant touch to the room. You can paint old buckets, glass or broken teacups and teapots and use them as flowers pots. These plants in unique pots can definitely add a new dimension to space.

For curtains, you can go with floral prints for plain walls and one block colour for textured walls. One can experiment with a variety of fabrics and purchase them from the wholesale market to save money.

Old trunks can be painted and used for storage and sitting as well. One can add quirky touch to it by using colorful cushions.
No matter where you, you carry the sweet memories of your family and friends with you. Hence it’s important to immortalize these precious moments and make photo story on the wall or create handmade photo frames.

These days there are a wide variety on fairy lights available in the market that can be used on the windows or can be kept in wine bottles for creation of mood lighting. They are not expensive, yet they make for a soothing and cozy ambiance.

Home is where the heart is. A good décor at home will reflect in who you are and how you think. With these cost effective hacks your home will surely be a beautiful place to live in.

Kunal Sharma is the founder, mentor and chief strategist of Gloob Décor.

Investing in development

Investing in development corridors – Things to remember

Buying property in areas close to infrastructure development is always a smart move to with an eye to gaining higher value for property in the future. But investment in such areas also comes with its risks.

HappyKeys talks to industry experts to gain an insight about some of the aspects that buyers need to keep in mind when investing along development corridors.

“Buyers (NRI or otherwise) today do a high degree of due-diligence before investing in properties. However, they also need to keep in mind that local government projects in India are different from how the ones in mature markets,” says Anirudh Khanna, land overseer and evaluate for several developers in Ghaziabad. “And this has a key influence on the value and development of the projects in the vicinity, which in turn impacts investment opportunities.”

Some of the factors that one needs to keep in mind when investing in development corridors include:

“Delayed infrastructure is generally the norm in India, more so when it is mired in controversies,” says Virath Mani, a consultant with Swara Real Estate Financial Advisors. “When investing in these aspirational corridors, one needs to factor in delays that may act as impediments for quick escalation in property values.”

An irresolvable delay in infrastructure project can have a negative impact on the potential of the location in the short term.

“A prospective buyer must take a look at the procedures undertaken to acquire land even at the planning stage,” says Khanna. “This is one key issue that can either stall escalation in property prices.”

A JV with a reliable global party
“Several roads, flyovers and bridges today are being developed in collaboration with international private parties. The advantage that these have is that they do not get into agreements unless the papers and processes are not checked,” says Mani.

Greater transparency
“Several project directors today are emphasising on greater transparency. This with the development of commercial and social infrastructure in the vicinity generally is a sign of sub-market development which can have a positive impact along development corridors,” says Khanna. “Researching enough to identify such pockets can prove to be a smart move.”

“The improving macro-economic conditions and transparency in the proposed project and the scale of investments are expected to impact the real estate market in the coming years,” says Genesan.

Targeted markets
Experts recommend targetting locations that have been earmarked for the next phase of development. Though slightly riskier with regards to ownership, if this key aspect is addressed, one can hope to book good profits even before completion of the corridor projects.

5 Key Things to Remember When Buying Property

Property Buying Tips1. Don’t jump to any conclusion once you see a property launch. Always check the legal holding and sale deeds. In Noida Extension, for instance, the court order came at a time the buyers had paid substantial money to the builders.

2. Ensure that the identified property clearly matches your present and future needs and goals. Some home buyers purchase apartments for their families; some buy for capital appreciation through long-term investment; some buy to enjoy living in a new township and some buy for living closer to their workplace.

3. Get the total math right. First-time homebuyers think they can afford the EMI payments and can own a house. There are always other monthly overflows. Property insurance, property taxes, homeowner association dues, maintenance charge, and electric and water bills are some of the outflows. And some of these tend to increase every year. So, calculate things properly before owning a home. Factor in hidden conditions that matter the most.

4. Do not assume you can go through the process all by yourself. You are a novice even if you own property in some other locality. Rules and regulations and procedure for registering change from state to state and sometimes even region to region. There are professionals out there who offer total solution as a service package which include even the cash transactions asked. The process of finding a suitable option, getting a loan et al can be stressful enough. So lack of knowledge and experience can result in big mistakes which are best avoided.

5. Generally, buyers focus on factors such as the price, location, number of rooms, location, possession date and amenities, etc. Legal clearances, finances of the builder for the said project, track record with records to project completion and obtained approval for the number of floors are some of the other aspects that prospective buyers need to track as well.