Do you want to buy a Property in Hyderabad?
If yes, then please look into below 6 important steps to be followed before buying a property.
1. Never buy without seeing the Property in Person.
Never buy without seeing the property in person and checking its presence in the area. If in case you are out of station / you are from out of the country, check its presence in the area visited by your friends or relatives.
2. Do not rely on notary documents without a registered deed of sale in respect of the Property.
Sub-registrars indicate that when buying any property, land, flat, house, do not rely on notary documents without a registered deed of sale in respect of the property. In the Hyderabad (Capital of Telangana State) Sub-Registrar’s Association has made some suggestions in the past and now with new amendments too.
3. Check the Property documents are original or not before buying.
Insist for original documents at all times before buying any property. Check the title deed / property ownership copies with the official documents issued by the concerned government departments also.
Here is a list of documents that are required for buying a property:
Sale Deed
This is the most important piece of paper required for property purchase. Sale deed has to be produced in original as it establishes the ownership of title of the property. You need to register the sale deed in the Sub- Registrar’s Office of the area where the property is located.
Extracts or ORC (Ownership Rights Certificate)
ORC is an important document for the registration of a new property. It is also required if you want to transfer the ownership of the property at a later stage. This document is a proof that the property has an entry in the local municipal records and the construction has been done according to an approved plan. Banks ask for this paper before granting you a home loan.
Mutation Register Extract
This specific document is for Gram Panchayat properties and provides the details of previous ownership. Though not required in original, this is mandatory to produce if the property you are buying is in Gram Panchayat jurisdiction.
General Power Of Attorney (GPA)
This document is required to prove whether the sale or purchase of a particular property is being done by an authorized person on behalf of the owner of the property. This has to be produced in original for getting a home loan.
Copy Of Building Plan
A buyer must acquire a copy of the building plan approved by the statutory body to establish that the construction of the property is legal and is done according to set rules and regulations.
No-Objection Certificates (NOC)
There are as many as 19 NOCs that have to be acquired by a developer from different authorities while building a housing project. However, the number may vary according to specific state rules. Ask your developer to provide you the copies of these NOCs, and keep it in your personal record.
Allotment Letter
An allotment letter is one of the most important documents required for getting a home loan. It is issued by a developer or the housing authority, stating the description of the property and details of the amount paid by the buyer to the developer. Do keep in mind that an allotment letter is not the same as an agreement of sale. An allotment letter is issued on the letterhead of the authority while a sale agreement is documented on a stamp paper. Moreover, an allotment letter is issued to the first owner and other owners can ask for the copy of the original letter from the seller.
Sale Agreement
This document lists all kinds of information about the property ― the terms and conditions, the possession date, the payment plan, the specifications, the details about the common areas and facilities, etc. The agreement also holds the developer responsible for the construction of the property. This document has to be produced in original for property purchase and acquiring home loans.
Possession Letter
This document is provided to the buyer by the developer, and sets a date on which the latter would grant the former the possession of the property. The original copy of this document has to be produced for getting a home loan.
Collect original payment receipts from the developer if you are buying a new property. If you are buying a resale property, ask for a copy of receipts from the seller to be produced to the bank.
Property Tax Receipts
Property owners have to pay taxes. Ensure that the previous occupier/owner had paid property taxes and there are no pending due. Property tax receipts also help in proving the legal status of the property.
Encumbrance Certificate
An encumbrance certificate is required to prove that the property does not have any pending legal dues or mortgages. This is one of the key documents banks ask for before they grant you a loan. This certificate also has all the details related to the transactions that happened over a period of time. In India, a Form 15 is issued if a property has any encumbrance registered; otherwise, a Form 16 will be given to the owner, stating there are no encumbrances.
Completion Certificate
This document is required for getting a home loan. This paper establishes the fact that the building is constructed according to an approved plan.
Occupancy Certificate
An occupancy certificate is issued by the local authority to the developer to establish the building is finally ready to be occupied and the construction has been done according to a sanctioned plan.
4. Ensure that the Property you are going to buy is legally clear and having approved permissions from the government.
Proceed to buy after making sure that the land you are buying is not on the list of properties prohibited by the government. Check if property has a registered society (in case it’s not a new construction). Check if there are any mortgages on the property (in case of resale) Check if property tax has been paid regularly. Check for clear title papers. Check for encumbrance certificate.
The layout however, must be purchased with the approval of one of the below for sure
- DTCP (Directorate of Town and Country Planning)
- HMDA (Hyderabad Metropolitan Development Authority)
- GHMC (Greater Hyderabad Municipal Corporation)
- PRRDD (Panchayat Raj and Rural Development Department)
- HUDA (Hyderabad Urban Development Authority)
5. Ensure that the structure and boundaries are in accordance with the approval plan which is the site plan.
A site plan can show all the below
- Property lines.
- Outline of existing and proposed buildings and structures.
- Distance between buildings.
- Distance between buildings and property lines (setbacks)
- Parking lots, indicating parking spaces.
- Driveways.
- Surrounding streets.
- Landscaped areas.
6. Ensure the link documents are all there, from the owner to the seller.
Make sure all the linked documents are the same as per the property survey number, number of premises and boundary details. All legal heirs who are entitled to that property must consent and ensure that nothing has come forward. The fact that there are no foreclosure or pre-sale agreements should be ascertained by the EC issued by the Office of the Sub-Registrar.
We are concluding that, If you follow these 6 Important steps before buying any property / land / flat / house then you will be happy and can avoid all the legal problems too.
Nice article, informative
Thank you