[vc_row][vc_column width=”2/3″][vc_column_text]Investing in a villa? There are a few important things you should do before you issue a check to your developer. You need to pay attention to legal aspects along with checking the Interiors, Amenities, and serenity of the place.
Real Estate is a great, in fact, an intelligent investment option. Buying a property is a major financial decision, especially if you are a first-time buyer.
As said checking legal aspects is the major thing you need to do after choosing a beautiful villa. Here are those 10 legal aspects you must verify before investing in a villa.[/vc_column_text][vc_column_text]10 Legal Aspects to Consider Before Investing in a Villa
Most good things come with risk, overseeing those will only land you in trouble ultimately. Fortunately, you can avoid any legal issues sooner or later in the future by checking the documents even before you invest in that beautiful villa.
Title Deed
This is the first thing you need to check for. Title deed circumscribes the ownership of the owner to the property. Simply put, it is how you verify the legal status of the property. You can know the right owner of the property and any disputes associated with it by visiting the sub-registrar’s office. As some people only have the development rights of the property, you need to check it to avoid any issues later.
Make sure you check the title carefully before you proceed to buy the property.
Encumbrance Certificate
As a buyer, you need to thoroughly inspect all legal documents to avoid disputes related to land or tax dues in the future. After all, you are buying a premium villa in a serene landscape to live peacefully, right? So, while reviewing the legal documents pay attention to every single document and receipt. The other legal document you need to look at is the Encumbrance Certificate. Encumbrance Certificate (EC) tells you if the property has any disputes and dues. This also shows you all the transactions done over the property from the period EC was registered. This way you can know if the property is under a mortgage or has any due etc. You might need to submit a copy of Sale Deed to get an EC from the sub-registrar’s office.
RERA Registration
All the projects that are built in 500 square meters or more and with 8 apartments in the projects should be registered under the Real Estate Regulatory Act AKA RERA. However, this applies to only the newly built and ongoing projects from 1st January 2020 onwards. So, verify the RERA certificate if you are buying a new property.
[/vc_column_text][vc_column_text]
[/vc_column_text][vc_column_text]Master Plan
If you are investing in a villa that is newly developed, there might still be some developments pending. Also, there will be a huge change in the surroundings such as some tall buildings, shopping malls, schools etc. in the coming years. You need to be aware of those as well before you invest in the property. While the development of the area is a good thing, you need to ensure if you don’t miss seeing the sunlight on your balcony.
So, consider checking the master plan of the area along with checking the master plan of your villa.
Land Use Certificate
You should also check if the residential property you are buying is in the residential zone and not in any commercial zone. As the property will be changed from agricultural to non-agricultural if it is so before they start developing the project. However, you need to still verify the Conversion Certificate and Land Use Certificate that says the usage of property land.
NOCs
The other important legal documents you must check is No Objection Certificates (NOCs). Verify NOCs from Fire Department, Pollution Control Board, Railway and National Highway Authorities, Aviation Clearance whichever is necessary based on the location of the villa you are going to invest in. You should also check for a copy of NOCs for water and electricity as well.
Commencement Certificate
The commencement Certificate is issued after the town planning department verifies the building plan, superstructure, layout, boundaries, etc. So, ensure you verified this certificate to make sure the property is constructed after he had got all the sanctions.
Occupancy Certificate
Occupancy Certificate is important to have as it says the property or the villa can be legally rented for tenants. Local Planning Authorities issue the Occupancy certificate after confirming that the villa is constructed fully under all rightful regulations and rules hence can be occupied.
So, you need to check this as well, no matter if you are planning to reside in or rent it.
Sale Deed
Sale Deed states that the ownership of the property is transferred to the buyer and finally the property is sold. However, before your seller issues this you need to know all above legal documents of which Title Deed and Encumbrance are majorly important to check. Also, make sure that the Sale Deed is prepared with the right details and is registered according to the authority’s rules.
Property Tax Receipts
Tax receipts are the mandatory things you should check before investing in a villa. A builder or the owner must pay the land tax of the villa every year. So verifying the property tax receipts not only tells you the right ownership but also lets you find any dues. If the builder or the owner fails to pay the taxes, you will be liable to clear the dues after you purchase the property. To avoid such extra burdens check the land receipts when you are walking through the legal documents.[/vc_column_text][vc_column_text]
[/vc_column_text][vc_column_text]Bottom Line
There are many legal documents to check before you invest in your dream villa. However, there is nothing to feel overwhelmed if you have a checklist of documents you need to verify. Along with the above documents, also pay attention to other things such as Environmental Clearance, Conversion Certificate, House Approval Plan, Mother Deed, Power of Attorney (POA) etc. before you invest. If you feel that reviewing these documents is a little daunting, don’t hesitate to seek the help of advisors or someone who better knows about such things. This way you can prevent yourself from landing into any legal trouble in the future.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_column_text el_class=”post-contact-form”][fc id=’2′ align=’center’][/fc][/vc_column_text][/vc_column][/vc_row]