Buying and selling of property have always been a current issue of society. People want to buy and sell property on a regular basis. Real estate investment is always a popular long-term investment. The documentation related to it is not easy. But if we make a checklist of all the documents that need to verify and submit, we can do it in an easy way. Nowadays, due to the availability of different types of home loans; we can buy homes on credit.
For investing in property, different things have to be kept in mind. Different regions have different characteristics that are suitable for someone and unsuitable for another. Metropolitan cities have an upper hand in which a person wants to invest in a property because of a lavish lifestyle that includes basic amenities, education, and health facilities. Other factors are prospects for future development, migration, tax benefits, infrastructural growth, etc. Financial consideration plays a very important part of the investment of a property.
Transfer of property act, 1882 deals with various forms of ownership in personal property. It deals with only immovable property. The Sales of Goods Act governs the movable properties.
As per the Act, the definition of the term immovable property under section 3 is not exhaustive. It only says that ‘immovable property’ does not include standing timber, growing crops, or grass. Definition of immovable property in section 3(26) of General clauses Act, 1897, is not exhaustive. It defines immovable property as it shall include land, benefits to arise out of lands, and things attached to the earth except for standing timber, growing crops, and grass.
DOCUMENTS THAT ARE IMPORTANT WHILE DOING AN INVESTMENT IN PROPERTY:
It is a document that shows a chain of ownership of property. It shows the absolute interests in the property. If the title of the land is not in the seller’s name, then legally, the ownership of the property does not belong to the seller, and we should stay away from doing such a transaction.
The Sub-Registrar issues the encumbrance certificate that reflects the encumbrance on the property (if any) like mortgage, lien, charge, etc. The Sub-Registrar issues such certificate (upon request and fee), which denotes the details of all the registered legal dues or any transaction pertaining to the property for the period requested for in the application submitted.
No Objection Certificate or NOC:
The concerned local authorities issue the certificate of no objection stating that there are no such discrepancies in the present plan and it can be duly executed. And it is one of the crucial documents to check before buying a flat from the builder. It works as evidence in showing that the project or the building is approved by the authorities and no objection is raised related to the construction of it.
Khata /Mutation Document:
It is a legal document containing all the details of a particular property, for instance, the name of the owner, size of the building, location, and other important information about the property which helps in filing the property tax with the concerned authority. The jurisdictional municipal corporation issues the Khata / Mutation document in the name of the present owner.
The local authorities issues this certificate. It is issued only after the completion of the construction of the project. This ensures that the building is fit for the occupation purpose. And can be possessed by people who are purchasing the property.
A sale deed is a core legal document that acts as proof of sale and transfer of ownership of the property from the seller to buyer. The Registration of a sale deed is mandatory.
- Latest Tax Paid Receipt:
Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the government/municipality.
The mother Deed of the property helps in knowing the actual origin of the property and act as an essential document in case of a resale property.
Through the power of attorney, a person appoints another person to act on their behalf. He legally authorizes the appointed person by way of either General Power of Attorney or the Special Power of Attorney.
The above-mentioned documents are very important and a checklist of them should be maintained before buying a property in India. Buying a property is not an easy task that can be done on a daily basis. Real market stocks have a high power of liquidity as compared to Real estate. Investing in estate requires an investment of at least five years as the rates of property rise or drop due to social, civic, and road development in the neighboring area factors. Real Estate properties can be passed on to the next generation, this is one such investment that will continue to grow and prosper.
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