Legal Checklist for Buying Property in Panchkula Extension: What to Know Before You Invest
Investing in property is a significant decision, and when it comes to buying in areas like Panchkula Extension, being legally equipped is crucial. Ensuring all legal aspects are covered will safeguard your investment and prevent future complications. Here’s a comprehensive legal checklist to guide you through the process.
- Title Verification
- Ensure that the seller has a clear and marketable title to the property.
- Obtain all title documents for the past 30 years and scrutinise them by a legal expert to confirm the seller’s ownership.
2. Check Land Use
- Verify that the property is in a designated residential area and that the land use conforms to the local zoning laws.
- Confirm with the local municipal authorities whether the land can legally be used for residential or commercial purposes.
3. Builder’s Approval
- Check that the developer or builder has received approval from the local authorities for construction, such as DTCP (Directorate of Town and Country Planning) approval.
- Ask for a copy of the building plan sanctioned by the relevant authority.
4. Encumbrance Certificate
- An encumbrance certificate ensures the property is free from legal or monetary liabilities, such as mortgages or pending loans.
5. RERA Registration
- Ensure the project is registered under the Real Estate Regulatory Authority (RERA). This gives you transparency about the project and protects your rights as a buyer.
6. Sale Agreement
- Thoroughly review the sale agreement before signing. It should mention all details about the property, payment terms, possession date, and penalties in case of delays.
- Ensure that the contract clearly outlines the developer’s obligations and includes a detailed description of the property and amenities.
7. NOCs from Relevant Authorities
- Obtain No Objection Certificates (NOCs) from the electricity, water, and fire safety authorities to ensure compliance with safety and utility standards.
8. Completion Certificate
- If you are buying a ready-to-move-in property, ask for the local authorities’ completion certificate (CC) and occupancy certificate (OC). These documents confirm that the property is built according to the approved plan and is safe for occupation.
9. Tax Receipts
- Request the latest property tax receipts from the seller to ensure there are no outstanding tax liabilities.
10. Home Loan Eligibility
- Check if your property is eligible for a home loan from reputable banks. Banks conduct their legal checks before granting loans, providing an additional layer of security.
Frequently Asked Questions (FAQs)
Q1. What is an encumbrance certificate?
An encumbrance certificate is a document that proves that the property is free from legal or monetary liabilities such as mortgages or unpaid loans.
Q2. Why is RERA registration important?
RERA registration ensures the project complies with legal requirements, protects buyers against fraud, and provides transparency regarding the construction timeline and quality.
Q3. Should I involve a lawyer while buying a property?
Yes, it is advisable to involve a property lawyer to verify all legal documents and ensure no hidden liabilities or risks are associated with the property.
Q4. What happens if the property is not RERA-registered?
If the property is not RERA-registered, it could be a red flag. Buyers may need help with transparency, delayed possession, and lack of legal recourse.
Q5. How can I verify if the builder has all the necessary approvals?
You can request copies of approvals from the builder, such as the building plan sanctioned by the local authority, and check with the municipal office for confirmation.
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