Ensure whether the property is legal or not!

Verifying the legal status of the property is of utmost importance before jumping to the financial transaction. Whether it is a home, land, or any real estate property, ensuring the legality of the property to crucial to avoid legal and financial issues in the future. 

Evaluating the legality of the property contains several aspects, like conducting research, checking the legal documents, and even talking to relatives and neighbours to verify the information. Buying and investing in a property is a complicated and extensive process. 

This buying guide describes eight tips that one should remember to verify the property’s legal status. These guidelines will bring potential and valuable information that can help make an informed decision. 

What is Meant By Property Verification?

Legal verification of the property is crucial during a property transaction, home loan, or mortgage of any land or estate. It is necessary to check all the documents and verify all the details to ensure the property owner is free from fraudulent activities in future and does not fall into any legal issues or loopholes. 

Eight Tips to Determine the Legal Status of the Property

Here are eight tips that you can follow and adhere to ensure the legal status of the property: 

• Ask for the Title Papers

Properties stuck in disputes of any sort have an uncleared title from the government. It means the property is under dispute, including ownership rights, illegal property construction, etc. That’s why it is important to get a clear property status. 

The construction company will have the title papers if you buy a new property. If you are buying a resale one, examine the paper thoroughly. Moreover, study these papers to ensure they are not fabricated or contain false information.

• Visit your Bank For Approval

If you are taking financing from the bank, your work for verification is halfway done. When you apply for a loan to buy the property, the bank officials conduct a proper survey to verify the legal status of the property. The property must be legally verified to get approval for a loan from the bank. However, read all the clauses before signing the loan or mortgage documents. 

• Get an Encumbrance Certificate

Getting property loans is quite common these days. However, if you purchase a property with a loan or dues not cleared, you shall be liable to pay off these dues as the property owner. Thus, you must ensure the previous owner has completely paid all the existing loans, mortgages, property taxes, and other costs.  

You can cross-check and verify this by asking the property owner or your agent for the encumbrance certificate. Bank issues this certificate, implying that the property is free of mortgage and pending loans.

• Visit the Property Site and Verify the Approved Plan

As per the government records, each apartment, building or property area has a finalised blueprint. It specifics all the construction information such as construction area, number of floors permitted, and details regarding beams and pillars. 

While buying your property, you must cross-check it with the actual site plan. You can easily get this from the building’s manager, who shall provide the approved blueprint as collected by the builder from the local authorities. With the help of this, you can verify that the construction of your property is legal.

• Property Tax Slips

Ensure you take all the property tax slips from the previous homeowner if you purchase a resale property. Property tax must be paid for both commercial and non-commercial properties. Property tax slips help ensure the previous owner has legally maintained the property and paid the tax timely. At the same time, it helps you to confirm that there are pending payments or fines on the property that might affect you later. 

A penalty is issued for the delay if the property tax is not paid before the deadline, thereby increasing the property’s dues. If you do not check this before, you must clear all the property taxes and dues as the new property owner. 

• Find Out About the Registered Society

Every apartment property is registered under a welfare or housing society. These societies help create value for the property. When you learn about these registered societies, you learn more about the property value. The association with society provides an idea about the property’s legality, which impacts decision-making. 

• Check the Sales Deed

A sales deed is necessary if you plan to make a sales transaction on the property. It is necessary to have this piece of document while you are buying or selling the property. This document is created and stamped by the government or local authorities to confirm your buyer’s identity, such as name, age, official residential address etc. This document shall help you save yourself from allying with a fraudulent identity.

• Seller is the Owner or Acquires a Power Of Attorney

Ensuring you are signing an agreement with the property owner or the individual with the Power of Attorney is essential. It helps ensure that the right person signs the agreement and is not a fraudster. Verify the property papers and the owner’s details before closing the deal.  

Steps to Follow for Property Verification

Conclusion 

Property verification cannot be neglected when purchasing or investing your life’s savings in a property. It can be considered a safeguard measure to protect yourself from legal complications and issues. By following this guide, you can smoothly conduct the inspection and verify the legal status of the property. 

 It is better to have a companion with a keen eye to find possible problems hidden in plain sight. By reviewing all the documents, checking for encumbrances, and examining the permits, you can clear all the obstacles to buying your dream property.