10 Crucial Tips to Consider Before Purchasing Property in India
Introduction
Historically, property transactions in India relied heavily on trust and goodwill. However, as time progressed, this practice became a breeding ground for legal complications, resulting in prolonged legal battles and causing significant mental, physical, and financial stress for the parties involved. This article is crafted to educate prospective property buyers in India about the vital steps to take before purchase a property in India. Adhering to these 10 essential tips will help them steer clear of unnecessary disputes post-acquisition.
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Scrutinize the Sale Deed
Before finalizing any property, or purchase and putting your signature on the sale deed, it is imperative to meticulously examine the document, line by line. If you identify any discrepancies or need modifications, do not hesitate to seek legal counsel to make the necessary corrections. Many sellers opt for copy-paste agreements to save costs, but this could prove costly in the event of a legal dispute. every transaction is different from the other and you should stress mentioning the terms and conditions as per your situation.
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Detailed Property Description
In the sale deed, it is essential to provide a comprehensive and accurate description of the property. Specifically, include the plot number and details of the surrounding landowners. This meticulous approach is essential, as instances have arisen where sellers sold the same plot to multiple buyers by altering the plot number, leading to severe legal complications during property possession. By accurately describing the property, confirming the plot number, and verifying ownership, potential legal complications can be mitigated, allowing the property transaction to proceed smoothly and with confidence. In conclusion, meticulous attention to detail in the sale deed can save both parties from the hassles of legal disputes and ensure a hassle-free property transfer.
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Insist on Original Documents
As a responsible buyer, always insist on obtaining the original property documents from the seller before entering into any agreement. Relying on photocopies can be risky, as unscrupulous sellers might have already used the originals to sell the property to another individual, potentially leading to legal entanglements at a later stage.
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Pay the Appropriate Stamp Duty
Avoid property transactions based on power of attorney to reduce costs and save money. Such transactions are not supported by law, as they are intended to evade the required stamp duty payable to the government. The Supreme Court, in the case of Suraj Lamp & Industries Pvt. Ltd v/s State of Haryana (2011), ruled all such transactions as illegal. Hence, it is wise to refrain from deals relying on power of attorney.
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Request an Encumbrance Certificate
Before finalizing a property purchase, it is essential to verify if the property in question has been mortgaged to a bank or financial institution for a loan. To ensure clarity, request an encumbrance certificate from the seller. This precaution helps you avoid unforeseen complications in the future.
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Reliable Witnesses
When preparing the sale deed, ensure the inclusion of competent witnesses who can be relied upon in case of any future disputes. Avoid choosing witnesses randomly, as their credibility can significantly impact the resolution of potential disagreements.
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Understand Local Regulations
Each state in India may have distinct property regulations and laws. It is crucial to familiarize yourself with the specific rules and guidelines governing property transactions in the region where you intend to make your purchase. This knowledge can help you navigate the legal landscape more effectively.
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Verify the Property’s Ownership History
Scrutinizing the ownership history of the property is vital. Ensure that the title chain is unbroken and that there are no disputes regarding ownership. This can be achieved by obtaining a property ownership history report from the local land revenue office.
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Property Inspection
Physical inspection of the property is crucial. This allows you to assess the property’s condition, the amenities provided, and whether it matches the description provided in the sale agreement. Any discrepancies should be addressed before closing the deal.
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Legal Expertise
Engaging the services of a legal expert or real estate attorney can be immensely beneficial. These professionals can review the sale deed to ensure that it complies with all legal requirements and offers maximum protection to the buyer.
In conclusion,
the Indian property market offers abundant opportunities, but navigating it requires diligence and foresight. By adhering to these essential precautions, buyers can safeguard their investments, avoid legal quagmires, and embark on their property journey with confidence.
Purchasing property in India can be a significant milestone, but it also carries inherent risks. By following these 10 (ten) critical considerations, you can safeguard your investment and minimize the chances of encountering legal disputes or complications. In the ever-evolving landscape of Indian real estate, knowledge and due diligence are your best allies.