Sunday, August 19, 2012

Most Common Documents To Check For Property Purchase

One of the most important things to do for buying property is to examine the completeness and genuineness of all the documents. Since the real life is beset with a number of complicating situations and add to it the complexities of a multitude of laws and bylaws, the documentation work of properties becomes quite a tedious task. However, the knowledge of all the necessary documents and their legal importance shall be known to the home buyers as well as the people associated with the property business.

Title Deeds (Registration documents, Power of Attorney, Conversion Deeds for Freehold Property)

You need to check where there is clear title to the property or not. The Registry done at the court is the conclusive proof of the ownership of the property. All people who are named in the property as owners shall agree to the sale of the property and shall be willing to sign the documents of transfer of title. In certain cases, the people tend to avoid the registration of properties due to heavy stamp duty rates prevalent in the area. In these situations the transfer of property is done on the Power of Attorney. If this practice continues for long, this becomes a convention and is deals are held sacrosanct by the parties. However, it shall be noted that Power of Attorney is no conclusive proof of the title of the property in the eyes of law.



Another document which shall be checked is the Conversion Deed which converts the leasehold property into a freehold one. Most of the modern housing projects offer the freehold spaces to the people.

It is quite common for people to take the home loan for their properties. So, if you are buying the property from any other person, you shall check whether the loan has been taken or not. This is typically the case when the original Registration documents are not available. Further, there is a need to check that the property is free from all encumbrances.

An important point to check while examining the title is that there shall be a continuous chain of buyers of the buyers if it has been sold many times over. Allotment letters, possession letters, occupancy letters, transfer letters and other documents from concerned authorities after each stage of construction shall be present in original

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Receipts of Taxes and Bills
All dues of the government and other bodies or persons shall be checked to ascertain whether these are clear or not. The owner must have the latest bills paid of the property tax, water and electricity bills and other such dues. If these are not cleared at the time of negotiations, these shall be cleared by the time the possession is taken on making the final payment.

These are some of the most common documents which shall be checked. There could be different complications in the property transaction from case to case. A person shall have a full knowledge of the importance of documents, their legal tenability and shall be capable of using his rationale on practical grounds to determine whether a property has clear title or not. Normally, the experienced property dealers know all documents and are experienced in meeting any issues in complex documentary deals.

The pranayam, Puri pratham, Diplomatic greens .

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