How to check if your property is legally clear?
In the current real estate scenario, most home buyers face litigation over their newly purchased apartments. It is necessary to check if the property is legally clear before booking it, even if it is a branded project. One should inspect the legal documents and construction approvals related to the project through legal consultants.
writer, Sulekha.com | Capital Expertise: Property
Home buyers are facing real estate legal issues due to the illegal construction and approval delays. This surges the need for purchasers to ensure the legal clearances of their new property. In the current real estate scenario, most home buyers face litigations over their newly purchased apartments. It is necessary to check if the property is legally clear before booking it, even if it is a branded project. One should inspect the legal documents and construction approvals related to the project through legal consultants.
Current real estate scenario in India
Recently Supertech got a verdict from Allahabad high court to demolish its 40-storey towers in Noida; however the real estate giant is planning to appeal in Supreme Court against the demolition. The high court ordered to demolish the towers as it was constructed against the mandatory building rules. This stirred up tension among other builders and home buyers in Noida extension who have constructed illegal floors. When the government announced the permitted FAR to be 3.5, most builders followed only 2.75 FAR; however all these builders including Supertech claims that they have received approvals from the concerned authorities. Experts say that seeking the court only delays the possession which is a loss to both the buyers and the builders.
Apart from property related litigations, these construction issues will also add burden to the flat owners who took home loans as they end up paying the EMI and the rentals. Most residential project cases that run in courts will stretch for years; even if the court gives a verdict in favor of the home buyers, the builders will appeal again. To ensure litigation free real estate transaction, it is necessary to check few factors related to property purchase.
Verify the title deed & Khata
Title deed from the seller must be clear from encumbrances so it is necessary to check the title. One can search the records at the sub registrar’s office related to the title deed of the property. The report will contain the owner of the property and the related changes in the title. Khata is a legal document that supports the title which will have an entry of the present owner and it can be verified with the local municipal records. It is necessary to check if the Khata is changed in the present owner’s name as it is necessary to obtain home loan, electricity approvals etc.
Examine the project plan
One can inspect if the building plan is sanctioned by the authorities in case of under construction projects. This can be done by comparing the sanctioned plan with the actual built up area of the project to avoid any illegally constructed projects. The layout approval can be verified with the concerned authorities. The land survey done at the time of buying the property will help to check on the legal disputes over titles, boundaries etc.
Check for legal dues
In order to check if the property has any legal dues, one can inspect the encumbrance certificate which will testify if the property is free of all legal dues and mortgages. If the property is in a society, then a no objection certificate (NOC) from the society is also required to check the legal status.
Look in to bank approvals
This is a simpler way to check if your property is legally clear as banks will only approve legally cleared properties that possess valid documents. The bank would have already checked the title clearance and other documents necessary so one can sure that the property is free of litigations.
With real estate issues increasing every day, realty experts advise the home buyers to check the documents and the builder profile along with his previous construction track records. One can get legal help for attorneys or consultants to perform a thorough check on the property for legal clearances.