Making investment in Real Estate

Making investment in real estate requires a lot of caution and verifications- right from site selection till the registration of the land. Here’s a quick checklist to ease your purchase.

• Ask the seller to share all original documents to confirm that the land has a clear and marketable title. A certified copy can be obtained from the local sub-registrar's office on payment of a nominal fee. Don’t rely on photocopy as it might signify that the original are mortgaged.   
• Obtain 'No Encumbrance Certificate' for the past few years to ensure that it has not been pledged or there are no outstanding loans on the property. Also, get clearance under the Urban Land-Ceiling and Regulation Act wherever applicable.
• Appoint a lawyer who could certify from the documents about the legal status of the property.
• In case of sale by an authorized representative or agent- check whether he has registered power of attorney to sell the property.
• Seek assistance from a reputed evaluator to assess if the price quoted is the correct market value.
• Sale deed or Agreement to sell must be executed by the seller and buyer. Make a clear agreement on the price to be paid and payment terms. Payment should include a clause on payment, on possession and registration.
• The Sale Deed prepared earlier is only an initial contract. Before registration, the Final Sale Deed is prepared on stamp papers of appropriate value which will be the prevailing rate of stamp duty in the respective States. This set of documents should be executed by the seller.
• Under Section 230A of the Income Tax Act, 1961 all Sale Deeds in case of immovable property valued at more than `25 lakhs should be cleared by the Income Tax Officer. Only then, the Registrar will register the property.

Thanks and Regards

Team

Saarthi Financial Planner

Email: saarthifp@gmail.com

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