Important Questions You should ask a builder before buying a property.
It is advisable to check the blueprint of the premises, the floor plans, the locality and the general neighborhood, the road accessibility, and the difference between a regular versus a luxury property. If you are an NRI investor, who will not be able to go directly to inspect the site or the area, ensure you send a reliable source on your behalf. In fact, you should also inspect and verify the legal documents of the property. Additionally, do thorough research on the location and ensure it is close to schools, colleges, supermarkets and retail outlets.
When you are buying a property, there are multiple costs involved besides the cost of the actual building. Ask in detail about the cost breakdown so that you gain an understanding of the cost that you will incur. This is one of the top questions to ask your builder before signing the deal. Find out about all the behind the curtain costs like – development fees, GST, parking rent, preferred location charges, other statutory charges etc.
Conduct a tour of the property and its premises, especially when it’s under construction, to get a better understanding of the quality of construction. Ask the builder about all the materials used in the construction, from the foundation till the finished doors, windows or walk-in closets.
One of the most important questions to ask your builder before buying a property in India is the delivery schedule promised by the real estate developers. Make sure they have in writing the delivery time which will neither hamper your investment benefits nor your move-in date. This has become a bit easier with the advent of RERA compliance, but one should ensure the builder complies with the RERA guidelines for meeting the scheduled date of completion.
As per the recently introduced RERA guidelines, developments are priced as per the carpet area of the property and not the built-up area. So, before you take the leap and finalise on your property, make sure the developer has priced the property based on the carpet area.
This is as necessary as the passionate decision to acquire property; to make sure what you want will truly be yours without any hassle or future complications of ownership, registration or any other legality. Some of the vital documents are:
- The Title Deed
- Encumbrance Certificate
- Property Tax Receipts
- The Release Certificate
- Building Completion Certificate (BCC)
- Local Municipal Corporation approvals
- RERA certificate
- Commencement Certificate
- Building Approval Plan
It is a good idea to verify if you’re getting all the promised facilities and amenities. A site visit will help you determine this. Some of the important amenities to check are: fire alarms, garbage chute system, car parking, lifts, power backup etc.
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legal documentation
The Building Approval Plan is a legal document that outlines the details of the construction project, including the design and layout of the building, the materials used, and other important information. It is an important document that ensures that the building is constructed in compliance with local building codes and regulations.
The Building Approval Plan is typically created by an architect or engineer and must be approved by the local government authority before construction can begin. This process is important to ensure the safety of the building and its occupants, as well as to avoid legal issues related to building code violations.
The Building Approval Plan may include details such as the size and shape of the building, the number of floors and rooms, the location of doors and windows, the materials used for construction, and the location of utilities such as plumbing and electrical systems.
It is important to ensure that the Building Approval Plan is accurate and complete before construction begins, as any changes or deviations from the plan may require additional approvals and could lead to delays or legal issues.
Overall, the Building Approval Plan is a crucial component of any construction project and ensures that the building is safe and compliant with local regulations.
A Sale and Purchase Agreement is a legally binding document that outlines the terms and conditions of a real estate transaction between a buyer and a seller. It typically includes details such as the purchase price, payment terms, closing date, property description, and any other important provisions related to the sale.
The Sale and Purchase Agreement is a critical document in a real estate transaction as it protects the interests of both the buyer and the seller. It ensures that all parties understand the terms of the transaction and have agreed to them before moving forward with the sale.
As a buyer, it’s important to carefully review and understand the Sale and Purchase Agreement before signing it. You should consult with a real estate attorney to ensure that the document protects your interests and that you fully understand the obligations and responsibilities outlined in the agreement.
It’s also important to ensure that all necessary contingencies and conditions are included in the agreement, such as the inspection contingency or the financing contingency, to protect your investment and prevent any unforeseen issues from arising.
As a seller, it’s important to ensure that the Sale and Purchase Agreement is drafted accurately and includes all necessary provisions to protect your interests. You should consult with a real estate attorney to ensure that the document is legally binding and that you understand your obligations and responsibilities as a seller.
Overall, the Sale and Purchase Agreement is a crucial document in any real estate transaction and should be carefully reviewed and understood by all parties involved to ensure a smooth and successful sale.
A Sale Deed is a legal document that records the sale and transfer of ownership of a property from the seller to the buyer. It is an important document that establishes the legal ownership of the property and is used as proof of ownership.
When a property is purchased, the buyer and seller enter into a Sale Agreement, which lays out the terms and conditions of the sale. Once the sale is complete, the Sale Deed is executed, and the property ownership is transferred to the buyer.
The Sale Deed contains important details about the property, such as the property’s location, boundaries, size, and description. It also includes details of the seller and the buyer, the sale price, and the payment terms.
The Sale Deed must be registered with the local sub-registrar’s office, as per the Indian Registration Act, 1908. The registration of the Sale Deed is important because it provides legal validity to the document and protects the buyer’s rights.
It is important for the buyer to verify the Sale Deed before purchasing a property, as it will ensure that the property is free from any legal disputes or encumbrances. A Sale Deed is a crucial document for any property transaction, and it is important to ensure that it is executed and registered correctly.
Mother deed is a legal document that establishes the ownership of a property. It is a primary document that contains details about the ownership history of a property from the time of its inception. It is also known as the parent document, title deed or conveyance deed.
The mother deed typically includes information about the property such as its location, area, boundaries, and any encumbrances or mortgages that may exist on the property. It also provides details about the previous owners and their respective shares in the property.
It is essential to have the mother deed while buying or selling a property as it establishes a clear and legal ownership history of the property. It is important to ensure that the mother deed is valid and up-to-date to avoid any legal disputes in the future.
In case the original mother deed is lost or damaged, a certified copy of the deed can be obtained from the concerned registration office by submitting an application along with the necessary fee.
Khata Certificate is a legal document that serves as proof of ownership of a property. It is an essential document for property owners to establish the identity of the property and to pay property taxes. In India, Khata refers to the account of the property in the municipal records.
The Khata certificate is issued by the municipal corporation, which maintains the property tax records of the area. It is issued in the name of the property owner, and it contains information about the property, such as its location, size, type, and the name of the owner.
The Khata certificate is an important document for property transactions, including buying, selling, or transferring property. It is also required for obtaining a loan against property or for getting building permits.
To obtain a Khata certificate, the property owner needs to apply to the local municipal corporation office with relevant documents such as proof of ownership, tax receipts, and property registration documents. Once the application is verified, the Khata certificate will be issued.
In summary, a Khata certificate is a vital document for property owners in India, as it serves as proof of ownership and enables the payment of property taxes.
An allotment letter is a document that confirms the allocation of a specific property to a buyer by the developer or the builder. It is one of the initial documents that is given to the buyer after the payment of the initial booking amount and serves as a proof of booking.
The allotment letter typically contains information such as the buyer’s name, address, the details of the property being allotted, the payment plan, and other terms and conditions agreed upon by the buyer and the developer. It is important to carefully review the allotment letter and ensure that all the details mentioned in it are correct before signing it.
The allotment letter serves as an essential document during the purchase process and is required when applying for home loans, obtaining approvals from housing societies or local authorities, and registering the property in the buyer’s name. Therefore, it is crucial to keep the original allotment letter safe and secure until the property registration process is completed.
A possession letter is a document that is issued by a developer or builder to a buyer of a property, stating that the construction of the property is complete and the buyer is now allowed to take possession of the property. It is an important legal document that confirms the transfer of the ownership of the property from the builder to the buyer.
The possession letter contains important details such as the date of possession, the details of the property, the name of the buyer, the name of the developer or builder, and any other terms and conditions of the possession. The possession letter also states that the buyer has paid all the dues and is now the legal owner of the property.
The possession letter is an important document that provides the buyer with the legal right to occupy and use the property. It is advisable to keep a copy of the possession letter safely as it may be required for various legal and administrative purposes in the future.
Power of Attorney (POA) is a legal document that authorizes a person or an organization to act on behalf of another person in legal or financial matters. In the context of real estate, a POA is used when a property owner cannot be present to complete a transaction or sign documents related to the property. The person or organization given the POA is called the “attorney-in-fact.”
For example, if a property owner lives in a different country and cannot come to India to sell their property, they can give a POA to a trusted friend or family member who can complete the sale on their behalf. The POA allows the attorney-in-fact to sign documents, pay taxes, and complete other legal or financial transactions related to the property.
It’s important to note that a POA should be given only to a trusted individual or organization. The attorney-in-fact has a legal responsibility to act in the best interests of the property owner and to use the POA only for the specific purposes outlined in the document.
No Objection Certificates (NOCs) are important documents that certify that the concerned authorities have no objection or issues with a specific activity or action. In the context of real estate, NOCs are typically required in various stages of the property buying process.
Here are a few instances where NOCs may be required:
Building Construction: Before beginning construction of a building, an NOC is typically required from the local municipal corporation or the relevant authority.
Home Loan: If you are applying for a home loan, your lender may require an NOC from the local municipal corporation or the relevant authority.
Sale of Property: If you are selling your property, the buyer’s lender may require an NOC from the local municipal corporation or the relevant authority.
Transfer of Property: If you are transferring ownership of a property, an NOC may be required from the local municipal corporation or the relevant authority.
In short, NOCs are an essential part of the property buying and selling process, and it is important to obtain them to ensure that there are no legal issues or disputes at a later stage.
Payment receipts are documents that serve as proof of payment for a particular transaction. In the context of real estate, payment receipts are issued by the seller or the builder to the buyer for the payments made towards the property purchase. These receipts can be used to keep track of the payments made and serve as evidence of the transaction in case of any disputes.
Payment receipts should include details such as the name and address of the buyer and the seller, the property address, the amount paid, the date of payment, the mode of payment, and any other relevant information. It is important to ensure that the receipts are issued in a timely manner and are accurate.
Buyers should always insist on receiving payment receipts for all the payments made towards the property purchase. They should also keep the receipts in a safe and secure place for future reference. In case of any discrepancies or disputes, the receipts can serve as evidence and help resolve the issue quickly.
It is also advisable to cross-check the payment receipts with the bank statements to ensure that the payments have been credited to the correct account. This can help avoid any potential fraud or errors.
Property tax receipts refer to the document or proof of payment that homeowners receive after paying their property taxes. Property tax is a tax levied on real estate by the local government, based on the value of the property. Property owners are required to pay property taxes annually or semi-annually, depending on the local laws.
The property tax receipts contain important information such as the property owner’s name and address, the assessed value of the property, the amount of tax due, and the due date for the payment. These receipts serve as evidence of payment and may be required by various entities, such as banks, during the property purchase or sale process.
It is important for property owners to keep their property tax receipts safely, as they may need to produce them as proof of payment during property transactions or for tax-related purposes. Additionally, property owners should ensure that they pay their property taxes on time to avoid penalties and interest charges.
An encumbrance certificate is a legal document that provides information about any charges or financial liabilities on a property. It certifies that the property is free from any outstanding legal or monetary dues, and can be transferred to a new owner without any encumbrances.
The encumbrance certificate is issued by the Sub-Registrar’s office where the property is registered, and it contains details of all the transactions related to the property for a specific period. This document is essential for verifying the legal status of a property before buying or selling it.
The encumbrance certificate includes information about any mortgages, loans, liens, or legal disputes related to the property. It also provides details of any agreements or contracts related to the property, such as lease agreements or easements.
Buyers can request an encumbrance certificate from the Sub-Registrar’s office where the property is registered by submitting an application form and paying the prescribed fees. It is recommended to obtain an encumbrance certificate for at least 13 years, as this is the statutory period for any legal claims or disputes related to a property.
Having an encumbrance certificate can provide peace of mind to buyers that the property they are purchasing is free from any legal or financial liabilities. It is an important document that should be verified before finalizing any property transaction.
A Completion Certificate is a legal document issued by the local government or municipal corporation after the construction of a building is completed. It certifies that the building has been constructed as per the approved building plan and in compliance with all the applicable building codes and regulations.
The Completion Certificate is a crucial document that certifies that the building is ready for occupancy and that it meets all the necessary safety and environmental requirements. The certificate is also required for obtaining essential services such as water, electricity, and gas connections.
The Completion Certificate is usually issued by the local building authority after a final inspection of the building is conducted to ensure that it meets all the necessary requirements. It confirms that the construction has been completed in accordance with the approved plans, and all the necessary safety and environmental standards have been met.
In the real estate sector, the Completion Certificate is an important document that a buyer should obtain before taking possession of a property. It serves as proof that the building has been constructed in compliance with all the applicable regulations and is safe for occupancy.
In summary, the Completion Certificate is an essential document that certifies the completion of the construction of a building in compliance with all the necessary standards and regulations. It is crucial for ensuring the safety and legality of a property and is necessary for obtaining essential services such as water, electricity, and gas connections.
An occupancy certificate is an essential legal document issued by a local government authority or municipal corporation to certify that a newly constructed building is ready to be occupied. It serves as proof that the building has been constructed in compliance with all applicable building codes, regulations, and safety standards.
The certificate is typically issued after the completion of all necessary inspections and verification of the building’s adherence to local building codes and regulations. It also ensures that the building has proper sewage and waste disposal systems, water supply, and electricity connections.
An occupancy certificate is necessary for many purposes, including obtaining home loans, renting or leasing the property, and transferring ownership. It is also mandatory for the builder or developer to obtain the occupancy certificate before handing over the property to the buyers.
The certificate includes important details such as the address of the property, the name of the builder or developer, the date of construction, and the date of issuance of the certificate. It is advisable to check the authenticity of the occupancy certificate and ensure that it has been issued by the appropriate authority.
In summary, an occupancy certificate is a crucial document that provides assurance to the buyers that the property is safe to occupy and has been constructed in compliance with all relevant regulations and building codes. It is essential to obtain the occupancy certificate before taking possession of the property to avoid legal and financial issues in the future.
MahaRERA stands for Maharashtra Real Estate Regulatory Authority. It is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, which was enacted by the Indian Parliament to regulate and promote the real estate sector in the country.
The main aim of MahaRERA is to ensure transparency and accountability in the real estate sector by registering and regulating real estate projects, real estate agents, and property transactions. It is responsible for protecting the interest of homebuyers and ensuring timely delivery of projects.
Developers are required to register their projects with MahaRERA before advertising, marketing, or selling them. The authority verifies the project details, including land title, approvals, completion timeline, and financial viability, before granting the registration.
MahaRERA also maintains a website that provides information about registered projects, ongoing complaints, and rulings. It has a grievance redressal mechanism in place to resolve disputes between homebuyers and developers. The authority has the power to impose penalties, cancel registrations, and initiate legal action against defaulting developers.
In Maharashtra, MahaRERA has become an important institution in protecting the interests of homebuyers and creating a level playing field for developers. It has increased transparency and accountability in the real estate sector and restored the trust of homebuyers in the sector.
