Saturday, September 24, 2011

Buying House/Plot -Dos &Dont to avoid cheating/fraud

Buying House/Plot-Do's & Don't to avoid cheating/fraud 
Owing a piece of land or house  is the dream of every individual[rich,poor or middle class]however ,one needs to be careful, while buying land or house to avoid legal hassles and wrangles.Which may cost your time and money,apart from mental agony of  pursuing cases in court of law and other authorities.

One must always remember the cardinal Latin principle  "Caveat Emptor" "buyer's beware"."A warning that notifies a buyer that the goods he or she is buying are "as is," or subject to all defects"" The law helps the vigilant ,before those who sleep on their rights "
The crucial exercise to be under taken by the purchaser is the investigation of the property and its title.The Nationalized Banks  will never loan, if the title is weak and ambiguous.

Warning :before buying a land check that land has clear and marketable title ,first find out tenure ,legal right of holder of lands in government records; tenure or possession right, whether free hold or leasehold or under government grant or sanad
always Remember;freehold is always preferable.It is  necessary to conduct the search in the Registry or Revenue, noting location details of the property and the ttile period to be checked.
The Agriculture land can not be used for non-agriculture purpose like group housing ,unless necessary approval or permission from local  Panchayat office ,especially suburb area of the city or town. If property is in the village panchayat area.

   Basic check list
  1. The property is transferable or not [inherited/joint  or self acquired property]
  2. The transferor is competent to transfer or not
  3. The transferor is qualified to transfer or not
  4. The object or consideration for the transfer is lawful.
  5. The transfer has been made and completed in the manner prescribed by law
  6. The property being sold is free from restriction for sale under Land Ceiling Act
  7. Always insist original documents with map for initial survey of property.&legal ownership document issued by Revenue Department  under proper seal of Tahsildar[Terms : Title book,Patta,Adangal,Pahani],whether they are authentic documents with proper seal and stamps[in case of sale deed]
  8. The title of owner shows "No Encumbrance" on the date of purchase and obtain NEC of 30 yrs  and shows no outstanding mortgage on the property to be purchased.
  9. If third party is involved in sale viz Real estate agent or promoter,verify whether he is legal entitled to sell the property like Ownership /Registered Power of Attorney.
  10. Seek the help of registered valuer to ensure the price quoted is correct as per market value.
  11. Verify the municipal tax receipts, electricity bills and water bills to ensure that there is no outstanding bills before purchasing the house.
  12. Ensure and verify the house got necessary approval and permits from competent authorities like Municipal permission for building with approved layout and cross verify any gross violation of approved lay out by builder or house owner .What is the post -maintenance arrangement of the apartment ?
  13. Verify the claims of builder or promoter and its antecedents ,their past constructions and their quality.Some times, advertisement can be misleading and deceptive to lure people with colorful brochures promising various amenities ,which may not be fulfilled by builder or promoter ,while delivering  the property.
  14. Verify the Real estate agent antecedents before seeking his help,it is prudent to avoid them,Verify whether housing society is registered body.  
  15. It is prudent to survey the property [land /house ]by making detailed personal inquiry  with local people.
  16. In case of cheating or deficiency of service by builder /promoter or real estate agent ,you can approach consumer forum directly through letter or representation with out any help of Advocate/LP or police [cheating element is involved]after taking thorough legal opinion.
  17. Ensure the meticulous and careful planning of sale transaction from investigation of title to sale deed with proper stamp.
  18. Apply for name change in Municipal office or Tahsildar office ,after sale transaction formalities were completed for possession purpose.
  19. Be cautious in money matters especially sale consideration,you can approach courts for enforcement of agreement to sale or  part -performance of sale transaction is not performed by the seller after receiving advance money or full money.

In case of any doubts about veracity of land documents ,it is prudent to approach the nearest qualified legal practitioner or professional to conduct extensive investigation of land and its title,it is advisable take the help of legal practitioner from initial stage itself to avoid pitfalls,especially people have no formal knowledge of property transactions[even though it is not necessary to approach  LP,if  you can handle things with good common sense].
The moot point to be noted is that with sheer mental alertness and common sense ,we can save our self from cheating/fraud  and ensure the smooth transaction of property.

Any negligence on the part of the purchaser will be fatal and will have to bear the heavy cost ,through litigation and mental agony. 

Note :As per recent judgment of Supreme Court of India ,the aggrieved party can directly approach consumer courts with out any help of Advocate or LP.No forum can reject the case of aggrieved party for the want of Advocate / LP.

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