Buying a property in Kerala has never been an easy task. Changing real estate rates, property tax rules and other changes in the industry really makes it difficult to sell or buy a property in Kerala. However, if you found a property worth and planning to invest on, there are certain things you must consider before fetching out the money.
Find the right agent
An important partner in your home-buying process, a property agent is the first person you should hire. Look for an agent who is well-versed and has an experience in the localities of your choice. Pick an agent with good business acumen about the current real estate market. Their knowledge about the localities and surroundings, and home-buying process as a whole coupled with negotiation skills can prove to be boon for you as a homebuyer.
Begin to identify properties
An agent, once hired, will be your partner from the very beginning of the process. Along with your agent, begin to find the potential property options in the localities of your choice. Make sure the properties you choose fits the list of your key parameters of home buying. Figure out your expectations from your home such as amenities, features and specifications. Start touring these properties and strike out the ones that are not fulfilling all the key parameters you want in your home. Make a list of all the things you saw in each property, take pictures and make videos. Sit down and put all of these together to shortlist.
Know how much can you afford
The price of the property is a crucial parameter. Know that apart from the cost of the property, there are other overhead charges, too. This includes stamp duty, legal fees, brokerage fees, property tax, etc. Define how you plan to invest in a property. Now, pick the shortlisted properties and begin to evaluate their worth in context of the selling price of these properties. Once you find a property that fits your budget, begin to look for a bank that offers attractive rate of interest on home loan.
Perform legal diligence
Whether you are buying a primary or a secondary property, make sure that the developer or the seller has the title of the property (the right to sell). In case the property is in a housing society, know all about their occupancy certificate and safety certificates. The home-buying process would also require a legal expert to read into the agreement and also, handle other legal formalities.
When it comes to real estate property, documents matters the most. Documents, in fact, are the most important criteria to analyse and consider taking the step further. Having the right documents certainly gives confidence of investing in the legal property having no problem for the long term.
Verification of property documents
Property documents are the most important part of property investments. They have to be checked thoroughly in order to avoid any fraudulence attempts carried out by the builder to cheat the investors. It would be a good idea to get a property lawyer to verify these documents. Given below is a list of property documents that may need verification:
* Sale deed
* Mother deed
* Approval plan of the building, along with the title deed, property assessment extract, up-to-date tax receipt, drawings of the property, earlier sanction plans, property PID number, city/panchayat survey sketch, the demand drafts, land use certificate and foundation certificate
* Conversion Certificate
* Encumbrance Certificate
* Power of Attorney
* Tax Receipts
* The Completion Certificate issued by the municipal authorities
* The Occupancy Certificate that certifies that the project is ready for occupancy.
- Title Deed
This is a type of document that typically outlines the chain of ownership of the respective property. It provides full right to the owner to claim the absolute ownership over the property. While buying the property, check if it belongs to the respective seller. Check the deed thoroughly, and if have no knowledge about it you can seek help of a property agent. If the title of the property isn’t in the name of the seller, then legally the property shouldn’t be purchased unless the consent from the real owner.
- Sanctioned Building Plan
Every developer at the start of the construction has to get the approval from local planning authorities. The developer has to submit the required documents for the sanctioned plan approval. So when you hunt for a residential apartment, do check if the developer agrees to present the sanctioned plan, if not then the construction is termed as illegal.
- Completion/Occupancy Certificate
This is yet another essential document the developer of the property has to submit to the buyer. Municipal authorities issue the Completion Certificate (CC) after the completion of the project. Occupancy Certificate (OC) is issued by the local government agency after the inspection and states safe for the residents. These documents are an important part of the home loan and should be in your checklist.
- Tax Receipt
The property owner has to present you with the legal tax pay receipt failing to which the government is authorised to impose a penalty of certain percent every month on the property buyer. So do make sure to check if the existing property owner has completed the tax regime.
- Encumbrance Certificate
It is a document issues by the sub-registrar to check if there is any encumbrance on the property like mortgage, charges, etc. The sub-registrar issues the certificate with complete details about the legal dues pertaining to the property. It is important for the property buyer to check whether the property is under mortgage or loan.
- Mother Deed
This document is needed when you buy a resale property. This is the parent document tracing the ownership right from the start. There are situations where the owner may do some fraud activity by undertaking the ownership of the property illegally, which will certainly effect your investment.
- Power of Attorney
This is an important document when buying a property. It is required to know if the seller has complete right over the property and selling it. You can even check with the real owner to have a check over the enforcing of power of attorney to the seller.
- Mutation Document:
This document contains all the details about the property including the name of the owner, property size, location, and other important information. It is issued by the municipal authority in the name of the present owner.
