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10 April, 2017
The Indian real estate market is witnessing a turnaround and is expected to see good growth and high returns over the coming few months. This is the right time to buy Residential Property in India as prices have corrected and stabilised post demonetisation of INR 500 and INR 1000 and are expected to escalate again over the next year.
Buying a new home or a property is one of the biggest financial decisions of your life. And before you take the big step to Buy Residential Property it is important to check a few things that will prevent you from investing in a fraudulent deal. Some due diligence on your part can help you from unscrupulous methods used by developers while buying Property in India. You can ascertain the authenticity of the purchase agreement without the need for a lawyer.
Here are some of the things that you need to watch out for when checking purchase documents while investing in residential property in India!
1. Personal details of the seller
First and foremost it is important for home buyers to check and verify the personal details of the seller. The identity card of the seller, which includes his name, father’s name, PAN number and bank account details. Make sure that the agreement is witnessed by at least two people each, from the buyers and sellers side.
2. Title Documents
The buyer must verify the seller’s property documents and check their authenticity. The ownership transfer in the agreement should be done in a completely legal manner. It is important to check that all pending dues on the property have been cleared by the seller till the date of the transfer. The agreement should also clear the buyer from any disputes related to the property once the transaction is completed.
3. Possession Date
The agreement should clearly mention the date of possession of the project, and ideally should hold the seller liable in case the delivery or transfer of project is delayed. The time of essence clause lays down the contractual deadlines for the parties and gives the buyer a right to sue, in case of any delays in project delivery.
4. Payment schedule
The agreement should clearly mention the payment schedule, including the total amount to be paid and the timely of payment. This helps in preventing any ambiguity or misunderstandings on the payment schedule, amount and plans. This can safeguard both the buyer and seller from any disputes in the future regarding the property. Mortgage details if any should also be clearly mentioned in the agreement.
5. Amenities and features
The amenities and specifications that the seller will provide to the buyer should also be motioned in an agreement. The amenities clause helps the buyer in understanding any additional benefits if any are available to them. In case of any default in the facilities provided the buyer can consider it a legal breach and sue the seller. It is also important to check approved layout and building plans with the number of floors available and be sure to get the approval plan for your building.
A penalty clause is also a must in a purchase agreement, which can be beneficial to both the buyer and seller. It should also mention the penalty amount, etc, in case of breach of contract from either party.
7. Termination clause
A termination clause helps both the parties in case of breach of agreement from either side. A ‘termination by convenience’ clause would help both the buyer and seller to end the agreement without any legal ramifications.
It is important to register the contract for the buyer after all the details have been finalised to buy property in India. Once the agreement is legally registered no changes can be made by the seller. If any changes are needed to be made by the seller, they would have to take permission from the buyer and an addendum will have to be made in the purchase agreement.
For registration of the property you can take the help of real estate site like 360 Realtors. It is one of the Top 10 Property Sites in India and offers complete help in finalising a property, preparing legal documents, as well as help you get home loans from banks at the best rates. The company ensures that the buyer’s interests and needs are met completely while making the huge decision to buy property in India.
Keeping these things in mind will help you make the right decision and safeguard your interests while buying your dream home!
Uttar Pradesh RERA: UPRERAAGT10868
Maharashtra RERA: A51900000246
Goa RERA: AGGO07180190
Haryana RERA: HRERA(REG.) 59 OF 2017
Bihar RERA: BRERAA00637/26/A- 50/2018
Punjab RERA: PBRERA-CHD04-REA0102
Karnataka RERA: PRM/KA/RERA/1251/310/AG/171113/000598
Gujarat RERA: AG/GJ/AHMEDABAD/AHMEDABAD CITY/AUDA/AA00607/230723R1
New Delhi : DLRERA2019A0057