You might be aware that in property deals, the builders are taking the NRIs for a ride as they fail to deliver the constructed buildings in time. After making all the payments, the helpless NRIs are endlessly waiting for their possession of the building. In few cases, the buyers are slapped with notices demanding further payments. But once the NRIs decide to take legal action against the erring builders and when documents are placed before legal scrutiny for opinion, I have found many a time that serious flaws exist in the agreements, default clauses, title deeds etc., etc. which makes the case of the buyers tough because of the initial negligence on their part. This happens because once the glossy multi colour brochures are distributed by the builders, the excitement and thrill of having a beautiful bunglow or villa in Kerala takes over and most of even the most intelligent people forget to verify the exact details which in turn is proving to be fatal in case of gross defaults committed by the builder. Learning from such experiences of my NRI clients, I always advice a pre-cautionary approach in buying property.
I suggest that the first step, in buying property anywhere in India, is to get the documents verified by a professional lawyer and seek his opinion. I think it is always better to do this exercise even before paying advance.
Following documents are to be scrutinized by a professional lawyer before buying the property:-
1. Title deed of the landed property.
2. Two prior title deeds of the landed property.
3. Encumbrance certificate in respect of the land for the past 31 years
4. Possession certificate of the current owner
5. Land tax receipts updated till now.
6. Authenticated sketch of the property showing measurements and boundaries.
7A. Approved Building Plan
7B. Permit issued by the Local Self Government authority for building construction
8. Agreement between the owner of the land with the building contractor/Construction/Development agreement).
9. Name, address, legal identity (sole proprietor/partnership/LLP/Pvt or Public Ltd. Co.) of the builder with DIN and PAN numbers of the proprietor/partners/directors).
10. Balance sheets of the construction company for the past three years along with any document/information regarding any ongoing/completed projects by the same builder.
11. Copy of the master agreement that will have to be executed by buyers with the builder clearly indicating the duties and liabilities of parties and default clauses.
All the above aspects/documents need to be looked into thoroughly from legal angle before making the payments and signing the agreement. This is to safeguard the buyer's interest as the buyer is legally expected to have any defects in the title as per the Transfer of Property Act. After all it is the buyer's hard earned money and the purpose of seeking legal opinion is to enable him to take a well-informed and considered decision.
Any professional lawyer, including me, will take minimum 7 working days from the date of receipt of all the above mentioned documents and payment of professional fees for the scrutiny of documents and giving legal opinion, Generally, the professional fee is charged on the basis of the value of property, the number of documents to be scrutinized, engagement of professional time, costs of overhead expenses, and the type of legal opinion sought by the client.
After scrutinizing all the documents, you must request your lawyer to give a brief comprehensive legal opinion in writing, which can sent by him from his official email id also. In case you need a detailed report with further suggestions, you may request for the same too.
I suggest that the first step, in buying property anywhere in India, is to get the documents verified by a professional lawyer and seek his opinion. I think it is always better to do this exercise even before paying advance.
Following documents are to be scrutinized by a professional lawyer before buying the property:-
1. Title deed of the landed property.
2. Two prior title deeds of the landed property.
3. Encumbrance certificate in respect of the land for the past 31 years
4. Possession certificate of the current owner
5. Land tax receipts updated till now.
6. Authenticated sketch of the property showing measurements and boundaries.
7A. Approved Building Plan
7B. Permit issued by the Local Self Government authority for building construction
8. Agreement between the owner of the land with the building contractor/Construction/Development agreement).
9. Name, address, legal identity (sole proprietor/partnership/LLP/Pvt or Public Ltd. Co.) of the builder with DIN and PAN numbers of the proprietor/partners/directors).
10. Balance sheets of the construction company for the past three years along with any document/information regarding any ongoing/completed projects by the same builder.
11. Copy of the master agreement that will have to be executed by buyers with the builder clearly indicating the duties and liabilities of parties and default clauses.
All the above aspects/documents need to be looked into thoroughly from legal angle before making the payments and signing the agreement. This is to safeguard the buyer's interest as the buyer is legally expected to have any defects in the title as per the Transfer of Property Act. After all it is the buyer's hard earned money and the purpose of seeking legal opinion is to enable him to take a well-informed and considered decision.
Any professional lawyer, including me, will take minimum 7 working days from the date of receipt of all the above mentioned documents and payment of professional fees for the scrutiny of documents and giving legal opinion, Generally, the professional fee is charged on the basis of the value of property, the number of documents to be scrutinized, engagement of professional time, costs of overhead expenses, and the type of legal opinion sought by the client.
After scrutinizing all the documents, you must request your lawyer to give a brief comprehensive legal opinion in writing, which can sent by him from his official email id also. In case you need a detailed report with further suggestions, you may request for the same too.
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