Buy Land Cheap

Before buying land or property, it is recommended that you seek the help of a good solicitor to inspect the original title documents of the property being purchased. Lack of a clear title would lead to a number of complications in the future including the difficulty in getting a bank loan, transfer of property to dependants, sale of property etc.

The following is a suggested checklist of documents that should be examined before buying property.

Sale Deed – This is the document by which the title of the property is transferred from the seller to the purchaser. This will help you determine the location of the property in terms of the society, land, or builder in which it is situated.

7 / 12 Extract – This document is issued by the local government authorities, the Tehsildar namely giving details such as area, date of registration by current owner, survey numbers, etc.

Search Report and Title Certificate – This document is absolutely essential as it tells the buyer whether the property is free from any existing mortgage, litigation, or any other form of claims or liabilities which might serve as an encumbrance to the buyer. An advocate issues the certificate after inspection. This can be done by your own attorney or be carried out by the current owner, in which case, your attorney should check the document carefully. It is mandatory that the builder attaches such a document in the sale agreement.

Property under Construction –Ask for an allotment letter at the time of buying a property. An allotment letter will give the following details:
> Agreed Price
> Construction and Payment Schedule
> Penaly clause for builder in case of late completion
> Date of Delivery

No objection certificate – If buying a resale flat in a society make sure that all charges such as electricity, water, property tax have been fully cleared before the sale. Make sure that you get hold of the documents like the original allotment letter, completion certificate provided by the original builder.

Stamp Duty – Stamp Duty has to be paid to the State Government and varies from state to state. The stamp duty payment has to be agreed upon and stated clearly in the sale agreement. If this has not been done, the buyer should pay the full amount and register his or her name as the owner in the land area records.