It’s imperative to make a fairly educated estimation of the value of the property you intend to purchase. Besides making your own assessment from the market, assistance of reputed and Government approved valuers may also be sought. A comprehensive valuation report indicating value of each of major asset and also the basis and manner of valuation must be obtained from an approved valuer.

Verification of the land purchase requirements:

The most important aspect of a purchase transaction, it must be competently handled by a reputed lawyer/solicitor/chartered accountant.

• The vendor must have a clear, valid and marketable title over the property. The document produced by him must be a registered one.
• A Non-encumbrance certificate should be obtained from the Registrar and a Good Title certificate from the concerning Tehsildar
• If the land was acquired under any scheme, the authentication certificate of the concerned Land Acquisition Officer has to be obtained

Other Considerations to be taken:

• Title Report - Also known as the ‘property card’ or the ‘saat-baarah,’ this is an investigation into the title of the land over a period of 30 years. It ensures the marketability of the land in the hands of the original owner. Ask for the detailed report, not merely an abbreviated certificate. This should be prepared for the seller by his lawyer & should be checked by your lawyer. If the title is not clear, you can be evicted from the property at any later date.
• Property under construction - If you are buying a new house, ask for an Allotment Letter or Development Agreement detailing the agreed price, payment & construction schedule, house plans, delivery date & builder’s liability in case of late completion or problems after possession. Make sure that the Developer has clear title to the land and that the relevant local authorities have approved the building plans. Once construction is over, ask for the completion & occupation certificates, which indicate that the building is in line with municipal requirements. Some other costs you will incur are society formation charges, transfer charges, deposit for electricity meter, charges for registration of agreement.
• Constructed property - Make sure that the seller has the title & possession of the property as well as the right to transfer the property. Check that relevant approvals have been obtained from the Land Development/Planning authority & the Income Tax department. Ensure that there are no tenants & get a declaration that the property was purchased from the seller’s funds and is not mortgaged. Place a notice in the newspapers about the proposed purchase. Get a No Objection Certificate from the builder or Society. Check that dues such as property tax, society, water & electricity bills etc. have been paid in full. Decide who will pay society transfer charges. Take possession of all relevant documents & also the original allotment letter, completion certificate, occupation certificate and all other documents given by the original builder.

Permissions : Familiarize yourself with the housing authorities in the area. The Housing Development Authority of an area provides all types of housing assistance. Before starting work on a property, it is essential to learn about the permissions required from the local development authorities, land ceiling regulations etc. This will help in safer investment.

Legal Forms Required in a Property Investment

• Agreement of sale
• Lease and license agreement
• Mortgage deed
• Development agreement
• Transfer deed
• Certificate of title
• Tenancy agreement
• Power of attorney
• Surrender deed
• Indemnity bond
• Release deed

Call us for any more details or doubts that you might have regarding Land Value considerations. We offer turn key solutions to all your real estate problems.