Legal issues to consider before buying a property

credit scoreOwning your own house is a dream of everyone in this modern age. Having your own house just doesn’t gives you a peace of mind but it can also acts as a great investment option for future. Most of us work hard in our professions and dream to achieve it. With your own home you can also create additional cash flows to your existing income with product like LAP. You can use this to further fulfill your dream of expanding your business, buying new machine or paying your existing debts etc. When we buy a new home for ourselves we check for facilities like Shopping malls, parks, Movies theatre, hospitals etc but more often than not we tend to forget about legal issues that directly affects property buying. LoanKuber has prepared following points about legal issues to be considered before buying a property –

  • Title Deed – It is one of the most important documents to check before buying a property. A person cannot cibil scoreclaim himself as the seller if the property isn’t on his name and he doesn’t hold any title over it. The buyer of property can ask for all the documents related to title of property. The title deed should be free of any disputes and seller should be clear owner of the property. Moreover, you can’t put your property as mortgage in loan if title is not clear.
  • Encumbrance certificate – Property that you are buying should be clear of any legal issues whatsoever. Encumbrance can be checked in a sub-registrar office by filling up a form and providing a duplicate copy of sale deed. To add to above point, you can’t create a mortgage for your loan application if there are existing legal issues over property.
  • credit score rangeMaster Plan – More often than not builders and sellers entice naive property buyers with things like Shopping Malls, Movie halls, Metro etc. These things are not certain to be built in nearby locality. You should always check property’s master plan for verifying these claims.
  • House Plan approval – You should make sure that place where your property is located has been approved and building plan has been approved by relevant authorities or not.
  • Land Use Certificate – It is imperative to check before buying a residential property that it doesn’t fall under any agricultural, commercial or industrial land. Any residential property constructed on these lands is illegal.
  • Agricultural to Non – Agricultural land – You should always check before buying a residential property that it doesn’t come under an agricultural land. If you are going to “use agricultural land for non agricultural purposes then you loan against GPA propertyshould get a “No Objection Certificate” from town planning authority.
  • Property tax receipts – You should check that seller of property is paying all property taxes on time for at least past 5 years.
  • Sale deed – It is one of the most important documents before buying a property. It is a legal proof that that property has been sold and legal title of property has been transferred from seller to purchaser. Care should be exercised for registering your sale deed.
  • Khata certificate – A “Khata” account is essential for buying a property. It is an account mentioning all the past owners of the property that you are going to buy.


faq6Additional important documents to be considered before buying a property are –

  • Completion certificate
  • Power of Attorney
  • Will
  • Occupancy certificate

Buying a house will be the most important and biggest financial decision of your life. It is important to be rather safe than sorry. To add to above factors you should also analyze total cost, reputation of builder, list of banks financing the projects, original site of the land etc.

Buying a property with absolute title will not only give you peace of mind but will also act as a great investment and cash generating option with financing options like LAP. We at LoanKuber can assist you in fulfilling your dream of getting a loan at lower rates and longer tenures.