Buying a property takes a lot of work and a great deal of investment. There are copious unpleasant stories about fraudulent made against NRIs where their property was illegally seized.
As a NRI it is most definitely hard to trust any individual when it comes to property management
If you choose to invest on property in India, keep the following in your mind:
Always Pick a Non-Agricultural Land
Make sure that the land you are investing in is non-agricultural, as any construction whether residential or commercial is prohibited on agricultural land by the government. Agricultural lands are for agricultural purposes only. You have to take permission from the collector of that area to convert the use of agricultural land for non-agricultural purposes.
Research on Land History
Always remember to research about the history of ownership of the land on at least the past 30 years. Checking records online is quite feasible nowadays. Find out the online portal of your state for checking land and property online. Almost every state has online records of property ownership.
Allotted Space around the Concerned Property
Ensure that there is a good space left around the property for adjoining roads or else you will have to sacrifice a portion of your purchased land.
Choose a Land with a Clear Title
The property that you are investing in should be free of disputes and pending court judgements. Property should not come under prohibited land of sec 22(A) of 1908, registration Act.
Security
If you are investing in a land that is situated in a remote area, make sure you deal with a developer who provides proper security and maintenance, this will help in avoiding encroachment.
Return on Investment
Research well and plan to buy a property in developing locations promising a good return on investment. Connectivity with local transport also increases the return on investment on that property.
Professional Assistance
It is always better to take a legal or a real estate professional’s assistance before making the final call.
If your chosen property meets all of the above mentioned criteria, then you are good to go ahead with the purchase of the land but not before you have checked the following property documents. NRIs must check these documents before buying a property.
These documents ensure the legality of your property:
• Sale Agreement
This consists project completion details, date of possession, payment structure and property description.
• Commencement Certificate
This certificate is issued by the local municipal authority to state that the concerned property is based on legal grounds. It also serves as a proof that the construction is not commencing on illegal land.
• Building Approval Plan
Without a sanctioned plan, every construction is considered illegal. Building approval must be authorized by the local government before carrying out of any purchases.
• Sale Deed
Sale deed acts as a proof of transfer of ownership of property from seller to buyer. It is important to get sale deed registered in Sub registrar office.
• Mother Deed
Also known as ‘parent deed’ provides a trace of history of preceding ownerships of the property.
• Conversion Certificate
In many states of India agricultural land can be converted into a non-agricultural land. The conversion certificate is important and mandatory for that purpose.
• Construction Agreement between first Owner and the Builder
This document is a contract under which a builder agrees to execute a work against remuneration.
• Allotment Letter from Builder
This letter states that remuneration is being given to the builder and the details and description of the property are also provided in this.
• Encumbrance Certificate
Besides mortgage and transaction history, encumbrance certificate indicates that the party selling the property is the owner of it as well.
NRIs are more susceptible to malpractices because of the lack of time, knowledge and adequate legal support at their disposal at the right time. With this checklist of documents and information, your hard earned money and time can be saved from such frauds.
