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    Home » Buying Property? Here’s What to Check Legally
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    Buying Property? Here’s What to Check Legally

    Steve AndarBy Steve AndarApril 14, 2025Updated:April 19, 2025No Comments3 Mins Read8 Views
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    Buying Property
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    Purchasing property is a significant investment, and while location, price, and amenities matter, legal due diligence is absolutely critical. Overlooking legal checks can lead to disputes, financial losses, or even loss of ownership. Whether you’re buying a home, commercial space, or land, here’s a legal checklist every buyer should follow before signing the dotted line.

    1. Verify the Title of the Property

    Start by confirming that the seller has a clear, marketable title. The title should be in the seller’s name and free from disputes or encumbrances. Ask for the sale deed, gift deed, or will through which the seller acquired the property, and have it verified by a legal expert.

    2. Check for Encumbrance Certificate

    An encumbrance certificate confirms that the property is not pledged as collateral or under any legal liability like a mortgage or unpaid loan. This document, available from the sub-registrar’s office, ensures that the title is free from financial encumbrances.

    3. Confirm Land Use and Zoning Regulations

    Ensure that the property is approved for the purpose you intend—residential, commercial, agricultural, or industrial. Buying a residential property in a zone restricted to industrial use can cause serious legal problems.

    4. Approvals from Local Authorities

    If the property is part of a housing project, check for approvals from local authorities like the municipal corporation, development authority, and utility departments. Ensure that the builder has obtained building plan approvals, environmental clearance, and occupancy/completion certificates.

    5. Review the Sale Agreement Carefully

    The sale agreement should clearly mention the terms of sale, property description, payment schedule, possession date, penalties, and other obligations. Make sure you understand all clauses before signing and consult a lawyer if needed.

    6. Ensure No Litigation is Pending

    Search through public records or ask the seller for a declaration that the property is not involved in any ongoing litigation or court case. This will help you avoid future legal battles.

    7. Validate Property Tax Receipts

    Ask for the latest property tax receipts to ensure that there are no outstanding dues. Non-payment of property taxes may indicate a legal issue or financial problem with the property.

    8. Check for RERA Registration (for New Projects)

    If you’re buying in India and the property is part of a new project, check if it is registered under the Real Estate Regulatory Authority (RERA). RERA registration ensures transparency and legal accountability from the builder.

    9. Examine the Power of Attorney (if applicable)

    If someone is selling the property on behalf of the owner using a Power of Attorney (PoA), verify that it is valid, registered, and notarized. Invalid PoAs can result in disputed ownership.

    10. Mutation and Possession Documents

    Ensure the property has been mutated in the name of the seller in local municipal records. This mutation record confirms that the seller is paying property taxes and is recognized as the legal owner by the government.

    Conclusion

    Buying property is a major financial move, and legal due diligence should never be rushed. By checking these legal aspects, you protect your investment and avoid future complications. It’s always wise to engage a qualified real estate lawyer to guide you through the legal process, giving you peace of mind before you move in or take ownership.

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    Steve Andar

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