Everyone wants to possess a house of their own. However, real estate transactions be it for a ready-to-move in property or a plot of land, are not exactly simple and easy. Buying a property not only requires you to spend a vast sum of money, but also invest lot of time and effort in order to coordinate with various parties, government officials and realty professionals. Then are the documentations and legal aspects involved in transfer of ownership that you will have to take care of.
Buying a property, especially in a big city like Chennai may seem difficult, but don’t let that fluster you, for here’s your checklist to doing it right.
• About the Property
When buying a property, there are a number of things that you need to consider, in order to ascertain whether the property is the right one for you. You can begin with the actual size of the property, noting the efficiency of the carpet area with respect to the super built area which contains the lobbies, lifts and staircase. Next, you need to check if the property is in good condition. Inspecting the paint finishes, wiring, tile fittings, ceiling finishes, fixtures and accessories will tell you about the quality of construction. You must also be thorough with the kind of amenities you want your house to have, for instance lifts, balconies, car parking etc. and whether that property or residential plot in Chennai includes these.
• About the Location
Whether you are buying a house or a housing plot in Chennai, location is a factor you have to pay great attention to. There are a number of things that you need to verify in this respect, beginning with roads around the property, access to different modes of transport, basic infrastructure in the area (power supply, drainage, water supply etc.), safety against flood and other risk factors, neighbourhood and so on. Beside these points, you can also look into the future development plans in the area.
All these factors are important as they will influence your investment returns.
• If the Project is Under-Construction
If you are looking forward to purchasing a brand-new property or one that is under-construction, you will need to put in some research so that you face no hassles and there are no regrets in the future. Looking into the background of the builder is as important as checking out the property itself. Checking past or completed projects by the builder, investigating into their after sales service quality, the banks and financial institutions associated with them, and refund policy are a few things that you can start your evaluation with. You must also note whether or not the final cost sheet includes details of additional costs to be borne by you.
• Documents’ Checklist
The many jargons related to documentations for buying a property which make the process confusing. It is essential that you check that all the documents are in order to escape any pitfalls while buying a property.
• Sale Agreement – This document contains the description of the property and elaborates the terms and conditions between the seller and buyer, including the purchase price of the property that has been agreed upon.
• Absolute Sale Deed and Title Deed – This is the document that holds the record of actual transfer of ownership of the property, and needs to be registered at the sub registrar’s office under the jurisdiction of whom it falls.
• Occupancy Certificate or Completion Certificate – This certificate is issued by the Municipal Corporation post the construction of a building, establishing that the property was constructed as per a sanctioned plan.
•Encumbrance Certificate – This certificate verifies that the concerned property is free from encumbrances, such as loans. It states all transactions carried out in relation to the property.
• No Objection Certificates – This document is to be procured by the developer or property owner from different departments, such as those of environment, pollution board, sewage board, traffic and coordination etc.
• Receipt or Property Tax – This document states that the previous owner has paid all the taxes and nothing on that front is due.
Besides the above, you will also need to receive approval from Chennai Metro Development Authority (CDMA) and sanctioning from local bodies, if your plot in Chennai is within city limits. For those plots in Chennai which are outside city limits, approval from the DTCP or District Town and Country Planning is necessary.
The documents that you will need to present may vary based on the type of property or plot you are investing in. It is therefore advised that you consult an attorney to help you understand the nitty-gritties and oversee the process of buying.