How to verify the documents before purchasing a flat

458 votes

1. Check for proper conveyance of title in favour of the builder.
2. Check the licence/development right/approvals of the builder. l
3. Check clear and marketable title of the project.
4. Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
5. Ensure whether reputed financial companies approve the project. This will help you in getting financial loans.
6. Check the tentative layout/building plan and verify the plinth area of the apartment. It is advisable to check the carpet area of the apartment and find out if the difference between plinth area and carpet area is reasonable.
7. Ask for Occupation/Completion Certificate.
8. Ensure the Conveyance Deed is registered after the entire payment has been made.
9. For buying a property you need to check Deed of Conveyance, Mutation Certificate (for complete property), Land Registration Status, Sanction Plan, Search Report and Payment Schedule (for under construction). It is a must that you go through all the documents relating to the origin of the property, chain of Title, Occupancy Certificate, sanctions from various authorities dealing with building plans, fire safety and Completion Certificate.

What are some common loopholes that buyer should look for in a such a purchase?

 
All constructions in the country have to be done according to the National Building Code. Though all good developers get their plans cleared by the authorities, some do not strictly adhere to them.
In a building, the maximum built-up area is linked to the plot size. The ratio of built-up floor area to plot size is called the Floor Space Index (FSI) or Floor Area Ratio (FAR). It is different for different localities.

Some spaces, such as balconies, terraces, voids, open parking lots and circulation areas, are not included in the FSI calculation. This is because these cannot be monetised.
Developers have to pay 'external development charges', or EDC, to the government for civic amenities such as roads, water/electricity supply, sewerage and drainage. The EDC is fixed by the local authorities and is passed on to buyers in proportion to the built-up area of their properties. The EDC is clearly mentioned in the agreement.

In the normal course, this should not be a problem, as builders deposit the money collected under EDC with the local authorities. But there have been cases of projects running into trouble as developers did not pay the amount collected under EDC to the authorities. If EDC is not deposited on time, a penalty is imposed. Some developers pass on the penalty to buyers.
For new constructions, developers have to seek clearance from the local authorities. When the building is ready, the local authority awards a completion certificate stating that the approved plan has been followed. This is mandatory for getting basic amenities such as water and power.

But this certificate alone does not give occupation rights. One also needs an occupancy certificate, which is awarded after authorities check that the rules for fire safety, elevators, electrical wiring, water supply and waste disposal have been followed.

LawRato LawRato

926 votes

There is no way to check the originality of any document. You have the right to approach the revenue department. You shall have to show the documents or the agreements with the original builder to the builder from whom you are purchasing the property

Advocate Siddharth Gupta LawRato

926 votes

Records of property and ownership are maintained in the Estate Office. While some records may be available online, for the records that cannot be accessed online, one can approach the Officer at the Estate Office to confirm the authenticity of the documents and the status of ownership in the property of interest.

Advocate Rohan Mittal LawRato