Things to keep in mind while buying

Precautions to take while buying

1. Get original property chain for the property papers. This includes Sale Deed, Encumbrance certificate aka chain of documents. This ensures multiple things including property is indeed registered to the original seller, property dimensions and if buying the land, its zoning and sub-division etc.

2. Get all owners to sign the agreement: Getting signature from just one or some of the owners is not legally valid for registration purposes. Given the property belongs to multiple owners, just one or some owners signing the agreement is not legally valid. If 1 or more owners did not sign the agreement, then they can easily file a case and stop the registration or even registration may not happen when you go to registration office. Ideally, payment should also be made to all the owners individually and in the same proportion as their ownership. Though this might be difficult sometimes since some of the owners may not have a bank account or may not be operating one. 

3. Check who has the possession and check lease agreement from tenant if applicable: Lot of times, while registration does happen, and payment is also made in full but it is possible that somebody else like Tenant is in possession and his lease agreement might be longer term or you might not be ok with those terms. Best is, the place is empty and you can take it. 

4. If there is a loan on the property. If there is loan, seller would need to get NOC. Get a loan statement so that you can ensure seller has paid the EMIs regularly and will pay off the loan as well

5. Check who has the mutations: Especially true in case of Land, make sure that revenue department notes who has the mutation and there is no issue on the mutation for the same. Get the property mutated from the past owner. 

6. Illegal construction on the property: Check if the all the built-up construction is approved by the statutory authorities otherwise it can be a problem later on. 

7. Any court cases on the property from owners', family or even RWA association

8. Property tax paid or not: Make sure that all taxes including electricity bill, water bill and property taxes are paid by the owner as per the registration date. 

9. NOC from resident's union: In case of apartment or colony, do check if their is any due from the resident's owner association and make sure that owner clears all past payments. Ideally get a NOC from the same before making full payment.

10. Brand plays a big role into buying/selling decision. Usually a brand will command 10-20% of total valuation.

11. Location plays another big role in property valuation

12. Layouts (Site layout, neighborhood, Unit Layout): All of this is very important. Usable space etc plays an important role on the same. 

13. Density of the complex: More dense the apartment, lesser the value since it means less common space, more crowd, less greenery, less amenities.

14. Payment plan: Some builder offers pre-EMI, no EMI option, cash option, which banks have loan approved, construction linked payment plan vs time line wise payment plan

15. Gentry of the buyers: End users vs Investors, Renters, Social status, youngsters, old age people etc. It is though hard to find out these things at times.