Buying Property in India - Legal Knowledge

As with buying a property anywhere in the world, India has guidelines that every property purchaser needs to follow. If a buyer starts taking too many short cuts then either failure to succeed in a purchase or a bad decision will surely follow.

India properties are largely a great investment for a buyer, regardless of whether the property is intended for the buyers own use, or to rent out.

It goes without saying that you will need a trustable lawyer working on your behalf, who will be able to help you with all the legalities of a purchase. You can cut some legal costs by doing some searches of your own then presenting them to your lawyer later.

The need to take legal advice where needed is almost certainly a big step in the right direction. Also following some good judgment will also play in a property buyers favor.

It is not always the best practice to take on board everything that an Estate Agent has to say about any India properties. The need to do thorough inspections also do all the relevant property and land searches will lead to much better results, and definitely much wiser decisions. Remember an Estate Agent is there to sell property, although most will follow all the regulations to the book, some can be slightly sneaky in the way they do business.

Always do some research on an Estate Agent, you can find a lot of information about an agent if you look online at company records. Or if you are actually in a city in India then ask around, get a feeling from people in the area as to who you can trust.

When a property buyer is in the market to buy a house, apartment or condo, excitement can take over his or her feelings. Yes it is great to be buying property, but it is a big disappointment if you get it completely wrong and end up losing thousands.

It is always best to look for registered Estate Agents, anybody else you should steer well clear of!

India Properties - Checking For Encumbrance at the Sub-Registrar of Assurance Office

There are some things you can do on your own without the help of an Estate Agent, doing a few property checks with the Registry and Revenue Office will give you a wealth of information.

When a buyer has all the details of a property they wish to search, such as title details. Then a quick search of a few legalities will benefit a purchase.

• Check that the name of the current owner is the same as on the title deed, and that he or she is the legal owner as per Revenue Record Department issue.

• Make sure that there is no outstanding mortgage, or that a mortgage that is outstanding is to be paid off before, during or with the proceeds of the purchase. Do not hand over cash to the owner if a mortgage is involved. You will need to seek the correct legal channels.

• Check the property is Transferable.

• Make sure the present owner is of no medical condition which could affect a sale, and is authorized to make the sale and eventual transfer of property deeds to you.

• Make sure that any sale has absolutely no restrictions enforced on it.

• Check for any potential land or property disputes. India properties can have some issues with regard to land, these should be well documented.

A full list of what you should be looking to ascertain and inspect regarding a property is available at the local Sub-Registrar of Assurance Office.

The time it should take on average to complete these searches will be around 5 days, and will cost about Rs. 10,000.

India Properties - Other things a buyer should be prepared for!

Here is a list of some other point that you should consider when planning a purchase of any India property. This way you can get a little scope on time frames involved in a purchase, and you know exactly where you stand when you decide to buy.

• Final Sale Deed - Your lawyer will prepare the green document, the date and place is usually blank until the process has been finalized. It takes about 7 days to complete and costs around 18,000 - 21,000 INR. Your lawyer may charge on average 1% of the property value. Make sure you discuss this with your lawyer first.

• Stamp Duty - Expect the cost to be 5% of the property value, it is to be paid at the designated bank and will be complete on the day it is paid.

• Final Sale Deed Submission to Sub-Registrar - The Reader of the Sub-Registrar of Assurances will go through the deed and check everything is in order. Signing the documents of transfer will be done in the presence of two witnesses. Your lawyer will have all the details of how this will proceed and any advice. You will need your identification, so have all the relevant documents discussed with your lawyer ready. The transfer should be complete in 1 day if there are no irregularities. The cost is 1% of the property value or a maximum of 30,000 INR and maybe 20 INR for each page of title deed documentation.

• Application to Register Land and Property as the Buyers - This usually takes around 30 days; the application is made via the Land and Survey Office, and costs 300 INR. There are a lot of process to go through here, such as presenting the signed application, indemnity bond, affidavit and the notarized and certified title deed copy. There will be a number of checks made by the office to confirm everything is in order and a Property Tax decision will be made.

Armed with all the information above you should be now able to effectively find and search out India properties, and not fall into any traps.

India properties are a great investment as stated at the beginning of this article, good luck with any purchase and make sure you get as much information as you can before deciding on any property, and yes it is okay to haggle a deal if you can.