subject: Documents To Be Tested Before Buying Property [print this page] Property investment is a huge investment for any persons life. A small hasty thing can put you into trouble. To get avoided from such troubles one needs to be very careful at each point in order to avoid legitimate hassles while purchasing land for your own. The legal status of any property is the first and foremost aspect to be checked before buying a property. Buying property must be crystal clear in all legal aspects. Do not make any advance payment or any kind of confirmation till the time you do not get all the necessary documents checked and verified with you.
Before purchasing property, there are several enquiries that need to be done to confirm that the land has a clear and saleable label. Initially check out the tenure and legal right of the first holder of the property in government records. The tenure or possession right could be freehold, legal right of the holder of the land in government record. The tenure or possession right could be freehold, leasehold or can be under a government endowment. Freehold property is the most preferable one. The seller should give all the necessary documents to the buyer.
There are some certain documents which need to be taken care while purchasing the property.
Title Deed:-Title deed is a first and foremost thing to be checked whether seller has a right to sell the property lies with him and if there is no other person tangled in it. Always force on having the original copy of the title deed never happy with duplicate copy only. Its always good to get the original deed examined by the lawyer and along with the title deed, the buyer can also demand to see the previous deeds of the land available with the seller.
Tax Receipt and Bills: -Property taxes and other duties or charges which are paid to government or municipality are a first charge on the property. Therefore, all checks are made in the government offices whether all the necessary taxes have been paid till date or not. The owner should also own the latest tax paid receipts, which you may review.While investigating in various sections of the municipality, you need to determine whether any notices or requests pertaining to the property have been issued and are unsettled and not yet fulfilled.If you are buying a house along with the property, then the house tax receipt should also be checked. Also make sure water bills and electricity is been paid up to date and if there is any balance payment to be made, make sure that it is made by the seller.
Encumbrance Certificate
It is always important to confirm that the land does not have any legal excises. Check the Encumbrance Certificate issued by the sub register office where the deed has been registered, stating that the said land does not have any legal dues and complaints.
Assured land
Some people may have taken loan from the bank by vowing their land. Make sure that the seller has paid back the complete amount due. Don't be satisfied with the receipt of the payment made. Release certificate issued by the bank is essential for all the obligations over the land. You may buy a land without the release certificate. But if you want to take a loan in coming future, the release certificate is a must.
Computing the land
It is prudent to measure the land before registering property in your name. Settle if the measurements of the land are precise. You would be able to do this with the help of a recognized examiner to get rid of problems in the future. You could also take the Survey Sketch of the land from the Survey Department and equate for precision.
by: kamal bhatt
welcome to Insurances.net (https://www.insurances.net)
