Buying property requires sizeable funds — at times one's lifetime savings — and involves a lengthy process. Besides, it also carries certain risks and may lead to huge financial losses. After zeroing in on the property you want to invest in, there are many things that must be taken into consideration before you make the payment. Forged papers and false promises are one of commonest frauds that are reported by property buyers.
However, with the right measures and precautions, you can easily safeguard yourself against any fraud while buying property.
Since the introduction of RERA (Real Estate Regulatory Authority), the number of frauds and scams has reduced. However, conmen are still on the prowl and ready to pounce on unsuspecting buyers.
The real estate industry involves heavy transactions and therefore, it is susceptible to frauds and scams. In India, investing in real estate, especially land, holds great value and is a life-changing decision as it consumes a big chunk of your hard-earned money. At times people even invest their entire earnings of a lifetime to acquire a new property. Thus, it is important to avoid getting scammed and make the right decisions regarding your investment.
Here’s a look at the complete land buying guide for buyers so that they can avoid being duped. Follow these steps before deciding to buy the property of your choice.
Remember, research is as essential as document verification.
1. Ensure that the plot has been approved by RERA.
2. Check whether the plot or house property has basic amenities like sewerage, electricity connections, roads, schools, hospitals and public transport.
3. Buyers can also hire surveyors for land measurements and floor space index of the property.
4. Conduct research on the capital appreciation value of a plot to ascertain the return value.
Documentation
Check/verify/obtain all the necessary documents listed below:
Sale deed: Core legal document and a proof of sale, transfer of ownership.
Mother deed: The parent legal document required to trace the antecedent ownership of the property/land.
Conversion certificate: Issued by revenue authorities, this document certifies the change in land use from agricultural to housing.
Non-agricultural order (NA order): One of the most important documents, the NA order validates that the land is non-agricultural land.
Encumbrance certificate: This document gives proof of mortgages, title transfers or any legally-registered transaction. Make sure that the land is not mortgaged and there is no loan against it.
Approval plan of your building: Naturally the next step after buying a plot would be to build a home or property. For this the owner must obtain an approval plan.
Documents required for the building plan:
Buyers can take the help of lawyers or consultancies to assess the accuracy and authenticity of the documents.
