Before buying properties in India, follow up on the legalities and legal documents must be checked.
- Property Tax receipts: Property taxes are what is charged first on any property that is paid to the municipality or the government. So you will need to conduct an inquiry in municipality and government offices in order to make sure if all the taxes were paid till date. You can even ask the owner for the latest tax receipt. This will let you check if any requisitions or notices are issued on property or taxes that are due on the property. When you check their property tax receipt, there are a couple of column in it. The first you need to do buying properties in India is if one has the name of the owner so make sure you verify it and the second one is for the taxpayer. In certain cases, the owner may not be holding the tax receipt. In such cases, you will need to contact the rural office with the land’s survey number and confirm the original owner.
- Property’s measurement: It is important that you measure the land prior to registering it. This will help you ensure that the borders and the measurements of the land are accurate and perfect. You will need to get it done with the authorised surveyor as this will help you keep off problems in the future. For knowledge’s sake, you must take the sketch from the survey department and this will make sure you ensure accuracy.
- Torrance Plan: Torrance plan is a detailed plan of any property that is done by licensed surveyors. All the details of measurements mentioned in this plan are quite accurate in terms of borders, length, width etc. this plan is needed for certain areas only.
- Pledged Land: A good number of property owners take hand loans or bank loans by pledging their property. Make sure you check if the whole due of the loan taken on the property is already paid for. When the entire due is paid for, the bank releases a ‘Release Certificate’. You must ask for this release certificate since you may need this in the future if you will have to take a loan in the future.
- Owners or owner: It is possible that a property has more than one owner. This is when you will need to get a release certificate or No Objection Certificate from all the owners.
- NRI owner: An NRI can also put his property on sale. The NRI will need to give Power of Attorney to a third person. This will entitle the third person to sell the property on his behalf. The most crucial thing is to make sure that the Power of Attorney is witnessed and is signed by an Indian Embassy officer. But in such cases, the Power of Attorney that is signed by the notary public will have no legal standing.
- Property Registration: All of the property sales are going to be illegal unless and until the transaction is though the sale deed registered and stamped. Once all of the documents are checked and collected, you will need to register the property/land at the Sub-District Magistrates or the Sub-Registrar of your locality.
NRIs must make sure they have a local contact when they buy or sell a property in India so as to be careful of getting cheated.