Things to check before buying a house or apartment in India. List of Documents to check before buying a Flat

Things to check before buying a house or apartment in India. List of Documents to check before buying a Flat

Are you planning to buy a new house or apartment? It’s natural for people to get carried away by the extravagant advertising claims of real estate developers. Developers tend to blow up the cost by marketing auxiliary facilities such as walking space, park, Gymnasium, spa etc even while the project is under construction. Further there are lots of ambiguities in advertising the floor space area. Ultimately it’s up to the buyer to decide which project suits his purse. With real estate prices skyrocketing in major cities such as Mumbai, Chennai, Pune, Ahmedabad, Bengaluru etc, one must be aware of the various costs and risks involved in buying property. Today, a 2BHK flat costs around Rs 45- 60 lakhs in most metropolises while a 3BHK premium flat or independent villa could touch Rs 1 crore or exceed it.

Documents to check before buying a flat or House: Below are the important documents one should check before buying a house or apartment

1. Master plan: Often builders make extravagant claims about future infrastructural development of the area such as Highway, bridges, Special economic zone etc. Many people fall prey to such claims and buy such property thinking that they will appreciate greatly in future. Verify the master plan of the area first before buying a house or apartment. These plans are available with the town planning department of the concerned district

2. Check for approval: Many developers start marketing their project while it’s under construction. However, they might not have obtained necessary permission from regulatory authorities. Environmental and municipal clearances are mandatory. The builder must possess NOC (No objection certificate) from all related authorities viz, environmental, electricity, water etc. Such unapproved projects would be considered illegal. Similarly, ground floor must be reserved for parking lot. The builder must not use this space for other purposes.

3. Check Blue print and final construction plan: Often builders will market many additional features like Swimming pool, shopping mall etc in the Blueprint and charge for the same, but the final plan may not contain the above. Builders may include a clause in the agreement which state that they reserve the right to alter the features. Hence, make sure that the promised amenities are included and ensure that there is a provision of Penalty in case of non-fulfilment

Generally the approved construction plan has to be mandatorily displayed at the construction site by the builder


4. Undivided share (UDS): Check if the builder has the authority to transfer the undivided share (UDS) of land to each flat owner. You must also ensure that the builder does not reserve any right on any portion of the apartment that belongs to you. Sometimes, the builder may reserve a portion of the apartment for balconies and terraces

5. Additional charges: Developers will charge a premium for additional facilities. Often, these will not materialize in the final plan. If the developer has included charges for any feature that is not provided, do not pay for the same

Independent House: While buying an independent house, make sure that the seller owns the property and possesses all necessary original documents. A clear title alone is not enough to verify ownership. You should check past ownership to rule out any fraud. In case of joint ownership, consent from all owners is necessary. A Good way to check proper ownership is to go through the house agreement. There should be no litigation on the property. Ensure that all bills viz, electricity, water, property tax etc are paid in the name of the legal owner. Similarly, ensure that there are no pending bills.

It’s illegal to sell a property which is still under mortgage. In such cases, the original documents will be held by the lending institution or bank. If the seller insists that he/she has paid off the debt, ask him/her to show the discharge letter from the bank