So, you already know the basic which is to do good research
both virtually and in person about the location, connectivity, amenities etc.
But, property investment requires a huge amount of cash to be satisfied with
just the basics. Doing proper background research of both the builder and the
broker is how you should proceed about it. Then comes the most vital aspect,
which is the legalities including an endless list of paperwork.
Listed below are some of the significant documents that you
should not just read but also understand clearly before you decide to buy a new flat:
TITLE DEED – A revelation when it comes to buying a property.
A Title Deed is a legal document that tells you whether the builder owns the
property being sold and if he or she has the freedom to transfer ownership and
sell the property. Always make sure that you insist on seeing the original copy
and not the photocopy. At the same time, it is advisable to get the Title Deed
reviewed by a lawyer for a crystal clear picture.
INTIMATION OF DISAPPROVAL (IOD) – There are various
permissions that are required at different stages of construction, which
requires getting approvals and No Objection certificate (NOC) from various departments such as the Storm Water and Drain Department, Sewage
Departments, Forest Department, Environment Department, Traffic and
Coordination Department, Chief Fire Officer, Airport Authority and Pollution
Board, among others.
COMMENCEMENT CERTIFICATE (CC) – As the name
suggests, it is a document issued by local authorities that legally allows a
builder to proceed with the actual construction work. So, make sure that you
ask for the Commencement Certificate as you would not like to buy a flat that
is illegal.
ENCUMBRANCE CERTIFICATE (EC) – This document is
issued from the office of the registration authority (the sub registrar’s
office) and tells you if the property carries any liabilities both legal and
monetary or if it has any litigations pending. The liabilities can date as far
back as three decades.
APPROVED LAYOUT PLANS – The planning
authorities are responsible for approving the layout plans. You must double-check
the approved layout plans with the actual construction as many builders deviate
from it by adding extra floors or reducing open areas making it a questionable
construction.
PURCHASE
AGREEMENT – What you read is what you get. That’s right. A purchase agreement
is that document which incorporates all the details such as project
specification, apartments, payment terms, completion deadlines and the type and
amount of penalty if any. It should also contain a clause to transfer the
common areas to the society ensuring no further construction by the developer.
Remember, you can only hold the builder legally accountable for the
deliverables mentioned in this document and not the flowery verbal promises.
OCCUPANCY CERTIFCATE (OC) – Finally,
the Occupancy Certificate is the last thing you should check to ensure that the
property has been constructed in compliance with all legally provided
permissions. The OC is only received after the builder has completed all the
necessary civic amenities connections such as water, sewage, electricity etc.
