Check for legal problems...

Before you short-list a particular property, you need to make sure that the land on which the property is being built, is free of any legal problems. If you do not do this, a few years down the line, in a Govt. drive to remove illegal property, your home may be destroyed. So it is better to be safe than sorry.

The first thing you need to check, is the "permitted use of the land" in the government records. Land CANNOT be used for real estate, unless it is "buildable" land as per government records. 

You should ALSO get your lawyer to find out from the land registration office whether the land has been sold or mortgaged to other parties, or whether any other fact has been left undisclosed by the owner of the land.

If the land area is more than 500 sq. m. check with the builder on whether he has obtained the "ULC Clearance" for development on the land.

Make sure that all the required property taxes to the municipality departments are properly paid and up-to-date! Ask the builder to provide you with the receipt of the latest tax payments to make sure that they are being payed. 

Inquiries should also be made in various departments of the municipality to find out whether any notices or problems relating to the property have been issued and not yet satisfied by the builder. Finally, it should be checked whether the property in the name of the seller according to government and municipal records.

Any land that is clear from all these issues mentioned above would be an ideal site for building. 

There is a simpler way to go about all of this investigation. You see, most municipal authorities seek "clearances" and "no objection certificates" from the relevant departments before sanctioning a building plan. So, if a promoter/builder is able to show you a sanctioned building plan, this could indicate that the land is free from legal issues. However, of course, some bribery etc.. may have been used to obtain the sanction of the building plan. So to be really sure you should investigate yourself. 

But, if you do not want to take the trouble, at least ask the builder to produce the sanctioned building plan!  

Next - Actual procedure for buying the flat.. >>

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Table Of Contents

  1. How to buy a flat? - Intro
  2. Choosing your flat! - Location
  3.       >> Functionality
  4.       >> Quality of construction..
  5. About home loans!
  6. Legal problems with land!!
  7. Actual procedure....