Buying a property whether a flat or a commercial unit is always a big step in an individual’s life. It brings along a sense of pride and confidence. It is a reason to celebrate and a feeling of accomplishment. In order to make sure that this happy pursuit does not turn sour at any time one must keep following things in mind before buying a property:
Clear Title and chain of Ownership
It is extremely important to make sure that the seller of the land / flat / commercial unit that you are planning to buy the said property from – has an absolute and undisputed ownership and rights to sell the said property to you. If it is not so, the title of the said property is known as defective and which also means that there might be lawful claimants on your property at a later stage. Therefore, firstly, you must appoint a law firm that will conduct a title search for few decades (or as the need be) for you and based on the same they shall issue a Title Clearance / Title Defective Certificate to you.
Land and Developing rights
Even if you are planning to buy a flat or a single commercial unit only, the land on which the said structures is standing is indivisible from the said unit. It is equally imperative to know the ownership, reservation and devolve of development rights of the said land. Documents such as 7/12 Extracts, Tikka Sheet, Mutation entries, Letter of Right and Sanctioned plans amongst others are important for determination of land records and rights.
Basic concepts of – IOD/CC and OC
Intimation of Disapproval (IOD) is given by the authorities if the proposed plan of a structure is not as per the existing norms of the government. If the authorities are satisfied that the proposed plan is correct and acceptable then the Commencement Certificate (CC) is granted to the developer to start the construction work on the proposed site. If the entire construction is done as per the sanctioned plan then the Occupation Certificate (OC) is granted and the full and final possession can be handed over to the purchasers.
Reservations ( if any )
There are several reservations by Government such as Forest reserved land, adivasi land, agricultural and non-agricultural land (NA plots) , land reserved for school, road widening, college, hospital, government offices and quarters ETC. It is imperative to check such reservations and other compliance before investing in a land.
Real Estate Regulations and Development Act has briefly stated and laid down the punitive laws for defaulting builders and developers. It has also regularized the work of real estate brokers and set laws in motion accordingly in Maharashtra, India on 01-05-2017. This act empowers the common man to complain against the defaulting developers and it also empowers the buyer to read about the authenticity certain project and its developer online before investing. This act is a positive step ahead towards digital India.