by Anushree Ghosh,
Indian dreams are still circumscribed by the parameters of owning a land. Though the millennials are slightly shifting towards acquiring experiences rather than collecting materials, but that’s an extremely small percentage. Buying property is considered an intelligent investment, considering the land prices have typically shown inflation every year. The prices could reach stagnancy due to some reason but a major loss is considered a farfetched possibility.
Although the buying power of the general public has increased over the years, the process has also become cumbersome due to the obvious corruption involved in the deals- edited papers, illegal cash transactions and disputes over land had majorly disrupted the real estate sector.
In order to enjoy a smooth transaction while buying a land in India, here are a few legalities which the buyer must keep in mind, irrespective of the state:
Title Deed: it is a legal document that depicts the chain of possession of a property. It is sealed in front of a notary . The Title deed should be in the name of the seller, otherwise he/she has no right over the property. In such is the case, disputes could arise regarding the ownership of the property.
Tax Payment Receipts: Revenue collected on property by the government should be paid by the owner. In case, property tax has not been paid by the previous owner, then the current owner is liable to pay the government; a penalty could be imposed
Encumbrance Certificate: This can be obtained from the sub-registrar’s workplace. It proclaims that there is no legal dispute or unpaid tax on the property. This ensures that are no extra hidden charges on the property.
Release Certificate: It ensures that the land is not mortgaged or in case owned by multiple people, then it is released legally by each landowner.
Mutation Document: Mutation is the change of the name of the owner at the time of selling the property. Mutating the property means that on documents the name and details of the property are changed. The details of the new owner are modified in the revenue department also; thus the government can levy taxes on the current owner.
Check Land Use: Get the city master plan from the local authority. Verify the land use zone before investing in it for a specific purpose.
Permissions by Local Body: The local development corporation must approve the layout of the property.
Property Registration: After selecting the property, the immediate next step should be to register the property. The property details are recorded in the registrar’s office. After proper registration, the new owner acquires all the rights in the property.
However, these complications can be simplified by hiring a reputed property consultant; otherwise there are chances of getting cheated, as one might oversee any nuance that may cause any dispute later.