Property Investment Safety Checklist for First-Time Buyers: What Should You Verify Before Purchasing a Property?
Think about it while you are going to purchase your 1st home. There are lots of paper works which needs to be checked and the question which strikes most of us mind is " Is my property title clear??". Yes it can be an apartment, or a plot or a house which you have bought or maybe planning to buy but there could be some title defect. Like documentations missing, pending dues or files, disputed or not approved etc.
So what all a home buyer needs to check while purchasing a home? He needs to confirm who is the seller of the property and whether he has valid title to sell that property. Has the property been sold or purchased earlier and if yes then is the document available for the same. Are there any pending disputes or liabilities on that property.
Properties can be either from DDA, or MCD, Noida Authority or Greater Noida Authority or Ghaziabad Development Authority. You can buy a property from a builder project too. Property can be leasehold or freehold or you can inherit property from your father or your relatives. Property which is being sold on the basis of power of attorney.
Advocate BK Singh checks all this and much more before you pay that big buck on a property. So that you don't have any pending surprises in the future.
Why Should First-Time Buyers Take Property Legal Verification Seriously?
Always do a due diligence on the property if you are a first time buyer before making large payments or signing on that dotted line. Many problems related to the property can arise even after registering a document.
There can be a broken link in Title/Succession/Legal loan/Litigation/Power/Encroachment/Pending dues/ Document Vs Property etc.
If you are purchasing a property with your family's hard earned money then such small issues can create havoc. Property disputes can go on for decades.
Being aware of these will allow you to make an informed decision.
What Should a First-Time Buyer Check Before Purchasing Property?
Normally a Due diligence Checklist for property will include Title & Possession of property, Sellers capacity to sell, Past Documents, Encumbrance, Approvals & Transaction related documents.
This also differs from property to property and location. Verification for a Residential Apartment in Noida will have some things which can differ from a House which is inherited in Delhi or say a Commercial/Industrial Property in Ghaziabad.
Does seller actually Own the Property?
One of the most basic question – who is the seller and does he actually have the right to sell that property?
Make sure you look at seller's ownership document along with past title trail. If the property has been transferred many times it won't be enough to just look at previous sale deed.
Also in case, its an inherited property make sure you know all the legal heirs and documents related to it.
Do you know the past title history?
As a buyer you should know how did the seller come into possession of that property.
It could be any of the below based on the situation.
Sale Deed, Conveyance deed, Gift deed, Partition deed, Succession Certificate / Letters, Release Deed, Will etc.
Incomplete information at one stage can become a big problem for you later.
Is the property clear from all Encumbrances?
As a buyer you should know if the property has any Mortgage, Charge, Attachment, Previous transaction or any other encumbrance on the property.
This also depends on what type of property you are buying and where it's located. Consult a Lawyer and know what you need to check for, don't just rely on one Encumbrance certificate or what your seller is telling you.
Are all the documents legit and match with each other?
Check all the names and addresses are same on all the documents. Does the property description match? Verify the area, Boundary, Survey No. etc. are same.
Just because you see some missing information doesn't mean something is wrong. But yes you should clear the doubt before going ahead with the transaction.
Are there any Approvals I should be knowing about?
There are various other approvals you should look into based on what your buying.
Building approval, Approved plans, land is meant for which usage, Is building permission taken from authority, Is there a Completion Certificate issued by the authority? etc. This also varies from property to property.
Which Legal Framework Applies to Property Due Diligence in India?
In India there are many acts that play a role when buying a property and not just one act to check your property.
The transfer of property act 1882 gives some basic guidelines about transferring a property. And the Registration Act 1908 states which documents need to be registered and how they are to be registered.
There could be Acts relating to Succession or Stamp Acts or town planning Acts or Municipal Acts or various Authority Acts that could apply to your situation as well.
When you buy a property for the first time its best to know what documents to check on that particular property and not learn all acts.
Could a Registered Property Still Have Legal Problems?
Yes. Registration should never be looked at as a 100% guarantee that all defects of title or otherwise have cleared.
While there are documentary and evidential benefits that come from the process of registering your purchase. You should still look into the sellers title, previous owners, if they had the power to sell the property and any encumbrances or others issues.
This can be very beneficial to those purchasing property for the first time.
What Documents Should First-Time Buyers Ask For?
There can be many documents which would need to be looked into during the course of the legal opinion. Some of which include:
- Present day ownership documents/title deeds
- Previous title deeds
- Any encumbrance related documents if any
- Mutation/revenue/municipal documents if applicable
- Building plan/approval or layout plan if applicable
- Allotment documents or lease deed if applicable
- Taxation records and pending dues (if any)
- Documents regarding possession
- Seller ID and authority to sell documents
- Succession documents if any
- Loan documents / Mortgage if any
- Builder buyer/allotment documents in case of builder property
This is just a sample list, keep in mind that you may need different set of documents based on the kind of property you are buying. Free hold, lease, succession, builder property, authority allotted property etc
How Does a Property Lawyer Help a First-Time Buyer?
The role of a Property Lawyer will enable you to find such issues prior to you entering into a financial obligation with the seller.
You can have your documents arranged properly and check title history. Any obvious discrepancies, risk involved in the deal and what you should clear before moving ahead can all be found out through a legal opinion.
If you are buying your first property it might come in handy as everyone selling to you will try and tell you about it from their point of view.
I am Advocate BK Singh and my expertise is in helping buyers find out about the legal implications of buying a property in Delhi NCR or any other part of India depending on what documents/facts are provided to me.
Why Should You Hire Advocate BK Singh Before Buying Property?
Want a third party to look into your deal before you make a payment?
It is advisable to get some one who will check on behalf of you as a buyer.
We can check on the documents provided and point out to you regarding apparent title, possession, documents and concerns regarding your transaction.
Do you doubt if the seller has clear title to the property?
There can be many situations when you need to understand more about the title of the property. Properties transferred between multiple sales or acquired by way of succession, co ownership, allotted by authorities etc.
Can be helped by getting these checked by a professional.
Buying property in Delhi NCR?
When you purchase property in Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad etc. you might have to deal with various authorities and properties can be acquired through different ways.
Knowledge regarding local transactions can assist you with what documents you have at hand.
Its your first home that you are buying with all your hard earned money?
You will need someone to guide you on the documentation side.
When buying property for the first time one is usually unaware of what documents should be verified. Or what things should one question before going ahead with the purchase.
BK Singh Advocate can help you get some documentation knowledge prior to your purchase.
What Is the Right Time to Consult a Property Lawyer?
As soon as possible is best but before its hard to back out.
Its best if this can be done before a large non refundable dollar amount has been paid. Or any major documents pertaining to the transaction have been signed or you continue under the assumption that the sellers documentation will suffice.
Any document you have been given by the seller, builder or broker can be used as a baseline for this to occur.
Once something has gone wrong you will have more issues.
What Happens If a Buyer Finds a Legal Problem Before Purchase?
It does not necessarily mean that all transactions have to be stopped.
Some may be able to be cured or amended with documentation. Some will show cause for further title/ownership issues.
This will depend on what is discovered. What documentation is at hand and where you are at in the transaction.
Your property attorney will be able to advise if it is something simple or will need more documentation or may require you to proceed with caution.
How Can Property Lawyers Delhi Help With First-Time Property Buyers?
Property Lawyer Delhi if you wish to consult an expert before buying your Property.
It could apply to any of the following scenarios.
- Buying Residential Property.
- Plot/House.
- Buy from Builder.
- Allotment from Authority.
- Property received through Will.
- Free hold / Lease hold property.
- Buying Property in Delhi NCR.
- Verifying Documents of Title/Ownership.
- Property Verification.
- Any other concern regarding Documents.
We will not ensure you any result but will tell you what does your document state, what queries you should ask and do you need more verification.
BK Singh Advocate will guide you if you wish to buy property.
Frequently Asked Questions
Do i need property verification as a first time buyer?
Yes property verification will allow the first time buyer to know about ownership,title,documents & transaction related issues prior to investing big amounts. This question can vary depending on what kind of property you are looking to invest in where its located who has owned it and what documents you have available.
If the sale deed is registered can there still be issues with title?
Just because a property deed is registered does not mean a buyer should not look into the sellers title. There can be many issues with past owners of the property as well as other documents. BK Singh Advocate will review the documents you have available and highlight any glaring legal issues.
Which document should I look at to determine if someone owns the property?
Look at all the documents provided to you. No one document will completely answer your questions regarding ownership. You should scrutinize the current title document along with previous documents that establish a chain of ownership. Also look into other documents as they may apply to your situation.
Should I hire a property lawyer to review my documents before paying an advance?
Yes you should. Ideally a person would get there documents looked over prior to paying any type of large sum of money. This again depends deal to deal as some documents may not require a property lawyer as to how your doing the transaction.
Can a property lawyer look over an inherited property before I purchase it from my family member?
Yes inherited property may require you to look into not only the current sellers documents but the previous owners of the property. You should find out how the seller came about owning the property. BK Singh Advocate will review the documents you provide.
Is there any difference in property verification if the property is in Delhi versus Noida?
Yes most properties in Noida will require you to look at documents from the Noida authority. Delhi being the national capital will have different.localities under different development wings. Always remember this when looking into property in certain areas.
Will the property lawyer be able to look over a builders documents?
Yes. Depending on the situation a property lawyer can review allotment papers,builder documents, payment receipts, possession letter and any other documents related to that particular property deal.
I found some discrepancy in my property documents. What should I do?
Do not ignore any discrepancies in your documents. First try to understand what the documents are saying. Oftentimes, a discrepancy can be mistaken or easily explained. But if the documents do not add up then you may need to ask some hard questions. Advocate BK Singh will help you understand what the documents you have are stating.
Will having a broker review my documents be enough?
If all you are looking for is information on the transaction a broker can help. But if you would like someone to look at the documents from a legal standpoint and make sure everything is in order. You should seek help from an Advocate. If you would like BK Singh to review your property documents please contact him.
Final Thoughts
Never trust Pictures while purchasing your first property. Watch out for these.
Here's a simple due diligence checklist you'd want to run while purchasing any property. Starting from Ownership verification to Title, Documents, Charges, Approvals and many other factors which need to be considered while investing in properties.
Investing in an Apartment in Delhi, House in Noida, Plot in Greater Noida or even any other property in India. You can always get an advocate to understand the nitty-gritty of what you are investing in.
Property due diligence in Delhi by Advocate BK Singh can help you verify your property documents if you are planning to purchase any property.
