7 ways to ensure a home buyer is legally safe without a lawyer's help!
Talk about a lawyer and most people start stressing; after all they do have a reputation of making you go broke.But sometimes it’s necessary to take their help especially when it comes to dealing with property.So does that mean if you decide to buy a property you need to rush to a lawyer?No! In fact if you keep this checklist handy you will not need to hire one.
1. Check for all clearances from housing finance institutions
A builder can proceed with their construction only when they have proper approvals from leading financial institutions. If bank approvals are there it means all legal hassles has been taken care of.So if you find a property with these clearances you can rest assured that it will be safe to invest in it.
2. Check for invalid documents
The mistake most buyers make once they decide buying a property is they rush into buying process without verifying documents. One of the most important being the approved layout plan, so don’t forget to ask your builder for the copy of the same.Again sometimes an area may be disputed and may not be marked for residential projects. So check for the BDA approval in case you are buying land in the city. It is also advisable to only buy a property if the title of the land is clear and valid.
3. Check the actual plan
Many small to medium level builders do not follow the legal building guidelines. They also may make some deviation from the sanctioned plan.For example, say you have purchased an apartment on the fourth floor. After buying you realize that the sanctioned plan or the legal allowed limit was only for three floors.However the builder has gone ahead and built upto the 6th floor. After you take possession of your apartment it will be you who is sitting on unsanctioned premises.It would be wise to ask for a copy of the sanctioned building plan before you buy a property.
4. Getting lured by freebies
Something grabbed my attention as I was reading the newspaper the other day. There was an advertisement about an apartment that promised a car for every booking!You will find many such property advertisements nowadays. Though we may laugh it off there are many people who do fall for this.Now why is it not a good idea to go for these offers? I would have got a house and a car at only the price of one!But the truth is that these offers are made most often to hide some inadequacy or some problem. The problems could range from anything from legal hassles, bad quality of construction to construction without approvals and many more.The end result is a piece of property that is more of a burden than peace of mind.But if that is not the case and if a car is really being offered with a property which is of good quality then rest assured that the cost has somehow been woven into the price of the property. So basically you are paying for both, but you are made to think you are only paying for the apartment.
5. Calculate the Hidden costs
While booking a property remember the price quoted is only a part of what you need to pay.There are many other costs that we tend to overlook like brokerage costs, stamp duty, legal fees, registration fees etc. These can run upto lakhs of rupees and you need to prepare for these beforehand.So before signing on the agreement and making the payment get the builder to sign and acknowledge the price which is the final amount.
6. Insist on a copy of the draft agreement before signing
You must be aware that you should never sign a document unless you read, understand and agree to everything. Similarly when it comes to signing the agreement, insist on getting the draft copy before signing.Once the signing is over, making any changes to the draft is not easy.If there is something that is bothering you in the draft talk to your builder about it, but unfortunately changes in the drafts are never made. This is to keep an uniform set of rules for everyone.But what you could do before signing the agreement is to check the history of builder, the quality of construction of his earlier projects and his adherence to time commitments.
7. Make sure to get the allotment letter
An allotment letter will be given to you by the builder once you pay a certain percentage of the property price. The document consists of the architectural plan, construction details, apartment information, payment options, delivery dates etc.The document is indispensable while availing a home loan. Moreover it will act as the proof of purchase and will be helpful if there is any problem in the future.Most people are only satisfied if they have the sale deed, khata and tax receipt, but they are not enough. Make this checklist a must for yourself if you are planning on buying a property and you may give the visit to the lawyer a miss!