What Precautions Need to be Taken While Buying Property?

Buying a property? Well, we all know how valuable it is for us to buy a property. For some people buying a property is like to add or feature another asset to their lifestyle while for some it’s to spend their hard-earned money which they have been earning for lifetime. Regardless of what the case is, everyone knows that buying any kind of property needs quite a lot of money and we can’t take any sort of risk while investing such a huge amount into any non-profitable property. There is an old proverb “ Precaution is better than cure”,

Thus here are some of the precautions that every person should take before or while buying a property -:

1. Research on property

(a). “ This is the foremost affordable project in this area to date ” While buying any property from a builder or any agent this would be the most common speech that we’ve been hearing. We all should be beware of falling prey to these pleasing words , instead we should always self-check whether the project or the property therein area is

  • Most Affordable project therein area
  • Fitting our budget
  • Worth investing
  • Profitable in future
  • Fulfilling our needs

(b). “You can never fail with the property”  While investing money in property one needs to be self satisfied  and for that the person must  self check . The person should not fully trust the builder or agent .

Whiletrusting the builder or agent , you need to be sure of certain things ;

  • Whether the builder or agent have good reputation.
  • Whether the property provided to you by builder or agent is of specific price or not.
  • Whether the project location mentioned  by builder or agent is reliable.

We all know that it is advisable to take real estate’s advice but one shouldn’t be completely dependent on that .

(c). What to checkout in property ?

There are certain more things that one needs to lookout for, they’re as follows;

  • Measuring the land – whether the area of land  is as per mentioned by the builder or agent.
  • Don’t go by a sample property – one should inquire about each  and  every aspect of the property because most of the times one does not get the things mentioned while showing sample  property.
  • What type of property is it? – residential or agricultural or for business purposes.
  • No hidden cost – one needs to check whether there are any hidden costs in the property or whether the property is pledge land or not .

2. Legalities

After you get satisfied with the property’s location, price etc,  the subsequent step  is to do the paperwork because usually most of the property disputes are associated with the paperwork legalities.

People nowadays often don’t  read the crucial  paperwork and this is the sole reason later in future most of the disputes take place.  Well here are number of the documents that are needed to be checked and skimmed properly so as to avoid any kind of disruptions in future associated to their property.

(I) NOC ( No Objection Certificate ) – According to modern law, NOC’s aren’t  so important but it is useful as it tells that the vendor has no dues left before selling such as tax, loan etc, Sometimes it’s  also called No Dues Certificate.

(II) Approved building plan – In  case of shopping for  a developing property  i.e which isn’t ready but are going  be ready in future, there is need for building plan approved by the government. This will cause less disputes in future.

(III) Encumbrance Certificate  – This certificate is issued to make sure that the property is free from legal disputes.

(IV) Sale  Deed  or Agreement  – This is one the most important document. The deed depicts the transfer of property from seller to buyer and therefore the  agreement shows that there have been affirmation on the price from both the sides of the party etc.

(V) Title deed – This deed shows the person’s right to the property . This deed makes sure that you simply  are the authentic owner of the property and you’ve got  all the necessary transactions done .

3. Other things to look for

(I) Getting your finances right !

While buying any kind of property one of the most important thing is to getting the finances right . It’s obvious that purchasing a property leads  in excessive amount of  expenses and people often do not fix their budgets. You ought to fix your budget and control  your expenses before buying any property and always aim for the property that comes within your budget, not what the builder or agent wants you to shop for.

“We have every sort of  connections for any kind of  loan”

Even after it seems that you simply can afford the over budgeted property mentioned by the builder or the agent, it’s obvious that you will be likely going for loan and then, you are offered builder’s connections to the loaning authorities. The builder or agents start referring to the sources of loan to which people often fall prey, in future it is often resulting in problems like unreliability of sources or even sometimes forgery and so on.

Therefore, one should self-apply for the loan in the bank.

One should be beware of these kind frauds. If you are looking for any property through any builder or agent make sure

  • He is reliable
  • Affiliated to CREDAI or BAI
  • CERTIFIED, because they carry more professional approach

(II) Make sure bank pre-approves the loans for any property

In case if you are borrowing loan from the bank, make sure that the banks pre-approves the loans, because most of the banks approves the loan only when they self inspect the property once, thus this decreases the probabilities of any disputes in future .

Hence, these were the precautions that one needs to take care of while buying any kind of property.

Hope this will help you. May your property brings you prosperity in future.

This article is written by Arpit Chauhan, 2nd-Year BBA. LLB. Student at Gitarattan International Business School, GGSIPU.

Also Read – What Are the Documents You Need to Check Before Buying Property?

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