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Legal Checklist For Buying A Property


Legal Checklist for Buying a Property

For most people, owning a house is not just a cherished dream but is also a long-term financial commitment. Homebuyers today are almost overwhelmed by the huge variety of properties that lie at their disposal. They are free to make a choice among these based on their specific requirements and constraints.

However, once you have decided which property to buy, it is of great importance to ensure that it complies with all the requisite legal checks. This is especially true for projects in Mumbai where the regulatory oversight is relatively greater and the monitoring is stricter.

Here is a list of things you must look out for:

RERA Compliance

To begin with, you should ensure that the project is registered on the MahaRERA website and has a proper MahaRERA registration number. This is necessary to ensure that the developer has complied with the real estate regulatory act. Under this, the properties need to be registered with a designated authority i.e. Maharashtra Real Estate Regulatory Authority. The primary purpose of this is to ascertain whether due principles of transparency have been followed.

Title and Ownership of the Property

Next, you must verify the title certificate on the RERA website and then based on the same, verify the documents pertaining to title of the property. See whether it is registered as a lease, a gift deed, or a freehold. Make sure that these documents are duly stamped and that the property is free of any past litigations.

Apart from the above, you might also want to check instruments like encumbrance certificate, tax payment status, etc.

Land Use Permissions

Most projects are required to be developed in accordance with the municipal authority's zoning plan. For example, residential properties cannot be developed in commercial regions and vice-versa. This is why checking whether the necessary land-use permissions have been obtained is a must.

Statutory Approvals

Once the land-use permissions have been authenticated, you need to check the building's statutory approvals. This is necessary to ensure that the developer has essential approvals for constructing the building in which the flat is offered for sale and there is no embargo or impediment on the construction thereof. The key permissions are IOA/IOD and commencement certificate.

Purchase Agreement

The agreement contains all major details of the construction project such as the project specification, apartments, payment terms, completion deadlines and the type and amount of penalty, should any party default. The agreement should also contain a clause regarding the formation of the society and the conveyance of land under the building in favor of society. This ensures the plot remains with the flat owners and that the developer cannot engage in further construction on this land.

Occupancy Certificate

In case of the ready possession flat, remember to examine the Occupancy Certificate before you take possession of the property. Any use of property without a proper Occupancy Certificate is considered to be unauthorized under building by-laws.

Final Note

Purchasing a house is a process which requires you to make a detailed and thorough examination of the property that you are going to invest in. This is why knowing the legal aspects of it will ensure that you continue to stay on the right side of the law. Though we have made every effort to make this checklist before buying a flat/property in Mumbai as comprehensive as possible, this is only a general guideline. Whether you’re looking to buy an under-construction or ready possession flat, always enlist the services of a good property lawyer who will vet the correct property documents for you and your unique situation. If you need any references, your real estate agent can easily help you with an excellent recommendation.

Whether you are looking for flats in Goregaon East or studio apartments in Andheri West, you need to look no further than the Omkar Realtors and Developers. The portfolio of Omkar Realtors and Developers spans from uber-luxury projects like Omkar 1973 to premium boutique residences like Signet, Lawns and Beyond, etc.

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