Some tips to our prospective borrowers intending to purchase property

It is very important to take utmost care before deciding on a property to purchase, considering that this is the single largest investment of one’s life’s savings. We make an attempt to provide prospective buyers some tips that they should follow for a hassle free purchase of their dream property: After selecting the property you want to purchase, get the title of the property verified by an experienced local Advocate. The title of the property should be clear & marketable and free from all encumbrances. In case you are also looking for a housing loan, the HFC or Bank will get the title verification done by their panel Advocate.   For properties with long chain of purchasers and sellers over a number of years, the title should be clear for last 13 years.   Make sure that water and electricity connections have been duly obtained through the concerned authorities and that house-tax has been paid for all the previous years.   Make sure that the seller has constructed the building after getting the layout plan approved from the concerned authorities. Also ask for the completion certificate as it is proof that no alterations have been made by the seller in the approved layout plan.   In case of purchase of Builder properties, consider only those builders whose projects have been approved by renowned HFCs and Banks. Purchasing property from less known builders in their un-approved projects is a risky proposition.   To be on the safer side, avoid purchasing property that has been sold or purchased on Power of Attorney & Agreement to sell basis. Shortlist only those properties that have been sold or transferred through a duly registered sale/transfer deed.   The next step is to make an Agreement to sell with the seller. Do not give bayana (Advance) to the seller unless you are satisfied that the title of the property is clear and marketable.   In case the property is leasehold, obtain the necessary permissions from the concerned authorities for a smooth transfer of property. For freehold properties, there is no need to obtain prior permissions from any authority (exception-HUDA).   Law of the land requires that stamp duty should be paid on transfer of property. In most of the states, stamp duty is lower for females as compared to males. Hence, purchasing property in the name of some female in the family would save excess stamp duty.   At the time of handing over the sale consideration to the seller, get the sale transaction duly registered at the concerned sub-registrar office by paying the appropriate stamp duty.   At some places, it is also important to get the mutation done at the office of concerned authority.