Registration & Licenses

Stamp Duty and Registration in India

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Stamp Duty and Registration Charges

 

The Indian government levies stamp duty on various legal papers such as sale deeds, conveyance deeds, gift deeds, and mortgage deeds. These agreements establish the contracting parties' obligations and rights. Stamp duty and registration fees ascertain possession and serve as proof of sale/purchase in a court of law. The sum you must pay to the authorities to register a property in your name is stamp duty. The cost of stamp duty varies based on the region's circular rates. The amount of stamp duty varies from state to state. 

 

 

The most conventional method of paying stamp duty and registration fees is to purchase physical stamp papers. One can buy non-judicial stamp paper from a licensed dealer here. Papers with imprinted stamps are known as non-judicial stamp paper. The transaction information can be written/typed on the stamp paper after purchase. The conventional method of paying stamp duty and registration fees is to buy physical stamp papers. You can purchase non-judicial stamp paper from a licensed seller. Paper with imprinted stamps is known as non-judicial stamp paper. The transaction information can be written/typed on the stamp paper once you have purchased it.

 

 

The government implemented e-stamping to prevent counterfeit stamp sheets and make stamping easier. Several states permit e-stamping. E-stamping is simply stamping done via the internet. The Stock Holding Corporation of India Limited (SHCIL) has been named the official e-stamping vendor and the Central Record Keeping Agency for all e-stamps used. To perform e-stamping,  you need to access the SHCIL website. Details on the transactions that must be e-stamped are present online. After filling the application form, you can return it to the collecting center with the stamp duty payment. Different modes of payment are adopted, including debit cards, credit cards, checks, demand draughts, and internet banking. Upon paying the stamp duty,  you would get the e-certificate. The issuing date is included in the certificate's unique certificate number (UIN). E-stamping has the advantage of being accessible and allowing for online verification.

 

 

Franking is a procedure in which an authorized franking agency stamps your document to indicate the amount of stamp duty you have to pay. One should contact an authorized bank that will function as a franking agent or a franking agency to deposit the stamp duty before you complete the transaction for which you must pay the stamp duty. 

 

 

 

People Also Read This: Gift Deed: All you should know

 

 

Stamp Duty on Gift Deed

 

The transferee or donee is obligated to pay stamp duty unless there is an agreement to the contrary. An agreement or gift deed, on the other hand, might indicate differently. The stamp duty is agreed to be paid equally by both parties in many sales and gift deeds. Get the stamp papers in the name of one of the parties to the gift, i.e., the donor or the donee; otherwise, the stamp paper will be rendered useless. If you pay the stamp duty on time, it is valid for six months from the date of purchase. Penalties, such as monetary fines, can be incurred if a document that needs stamping is not stamped correctly. If you don't pay your stamp duty on time, you'll be charged 2% every month, up to a maximum of 200 percent of the amount you owe in stamp duty.

 

 

Stamp Duty Registration Calculator

 

 

The bottom line is that stamp duty is computed based on the property's entire market value. If your asset's market worth is high, you'll have to pay a hefty fee and vice versa. If the property has both a market value and an agreement value, you will pay stamp duty on the higher of the two. Apart from the property's cost or worth, the kind of property, location, the owner's gender and age, the property's use, and the number of floors in the property all influence the property registration fee and stamp duty costs. Stamp duty officials usually utilize Stamp Duty Ready Reckoner to determine the property's value. Consider using one of the many online stamp duty calculators available to figure out how much stamp duty you'll have to pay. To receive your answer, enter basic information about your property, such as its location and total worth, and then click the "Calculate" option. To calculate the total sum required to register your property, add the cess and surcharges.

 

 

People Also Read This: Land & Property Registration: All You Need To Know

 

 

Stamp Duty Value

 

 

Any value set by any authority of the federal government or a state government for stamp duty payment on immovable property is referred to as stamp duty value. When acquiring a property, it is necessary to set up a substantial sum for stamp duty and registration fees. Registration fees are paid to the same body that handles all the paperwork required to complete the procedure. Suppose the actual sale consideration of such land and the building is less than the stamp duty value. In that case, the stamp duty value will be considered an absolute value of consideration, i.e., as deemed selling price, and capital gain will be computed accordingly to section 50C.

 

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Stamp Duty and Registration in India
Registration & Licenses

Stamp Duty and Registration in India

Stamp Duty and Registration Charges

 

The Indian government levies stamp duty on various legal papers such as sale deeds, conveyance deeds, gift deeds, and mortgage deeds. These agreements establish the contracting parties' obligations and rights. Stamp duty and registration fees ascertain possession and serve as proof of sale/purchase in a court of law. The sum you must pay to the authorities to register a property in your name is stamp duty. The cost of stamp duty varies based on the region's circular rates. The amount of stamp duty varies from state to state. 

 

 

The most conventional method of paying stamp duty and registration fees is to purchase physical stamp papers. One can buy non-judicial stamp paper from a licensed dealer here. Papers with imprinted stamps are known as non-judicial stamp paper. The transaction information can be written/typed on the stamp paper after purchase. The conventional method of paying stamp duty and registration fees is to buy physical stamp papers. You can purchase non-judicial stamp paper from a licensed seller. Paper with imprinted stamps is known as non-judicial stamp paper. The transaction information can be written/typed on the stamp paper once you have purchased it.

 

 

The government implemented e-stamping to prevent counterfeit stamp sheets and make stamping easier. Several states permit e-stamping. E-stamping is simply stamping done via the internet. The Stock Holding Corporation of India Limited (SHCIL) has been named the official e-stamping vendor and the Central Record Keeping Agency for all e-stamps used. To perform e-stamping,  you need to access the SHCIL website. Details on the transactions that must be e-stamped are present online. After filling the application form, you can return it to the collecting center with the stamp duty payment. Different modes of payment are adopted, including debit cards, credit cards, checks, demand draughts, and internet banking. Upon paying the stamp duty,  you would get the e-certificate. The issuing date is included in the certificate's unique certificate number (UIN). E-stamping has the advantage of being accessible and allowing for online verification.

 

 

Franking is a procedure in which an authorized franking agency stamps your document to indicate the amount of stamp duty you have to pay. One should contact an authorized bank that will function as a franking agent or a franking agency to deposit the stamp duty before you complete the transaction for which you must pay the stamp duty. 

 

 

 

People Also Read This: Gift Deed: All you should know

 

 

Stamp Duty on Gift Deed

 

The transferee or donee is obligated to pay stamp duty unless there is an agreement to the contrary. An agreement or gift deed, on the other hand, might indicate differently. The stamp duty is agreed to be paid equally by both parties in many sales and gift deeds. Get the stamp papers in the name of one of the parties to the gift, i.e., the donor or the donee; otherwise, the stamp paper will be rendered useless. If you pay the stamp duty on time, it is valid for six months from the date of purchase. Penalties, such as monetary fines, can be incurred if a document that needs stamping is not stamped correctly. If you don't pay your stamp duty on time, you'll be charged 2% every month, up to a maximum of 200 percent of the amount you owe in stamp duty.

 

 

Stamp Duty Registration Calculator

 

 

The bottom line is that stamp duty is computed based on the property's entire market value. If your asset's market worth is high, you'll have to pay a hefty fee and vice versa. If the property has both a market value and an agreement value, you will pay stamp duty on the higher of the two. Apart from the property's cost or worth, the kind of property, location, the owner's gender and age, the property's use, and the number of floors in the property all influence the property registration fee and stamp duty costs. Stamp duty officials usually utilize Stamp Duty Ready Reckoner to determine the property's value. Consider using one of the many online stamp duty calculators available to figure out how much stamp duty you'll have to pay. To receive your answer, enter basic information about your property, such as its location and total worth, and then click the "Calculate" option. To calculate the total sum required to register your property, add the cess and surcharges.

 

 

People Also Read This: Land & Property Registration: All You Need To Know

 

 

Stamp Duty Value

 

 

Any value set by any authority of the federal government or a state government for stamp duty payment on immovable property is referred to as stamp duty value. When acquiring a property, it is necessary to set up a substantial sum for stamp duty and registration fees. Registration fees are paid to the same body that handles all the paperwork required to complete the procedure. Suppose the actual sale consideration of such land and the building is less than the stamp duty value. In that case, the stamp duty value will be considered an absolute value of consideration, i.e., as deemed selling price, and capital gain will be computed accordingly to section 50C.

 

All you need to know about Digital Signatures and how to get the Certificate
Registration & Licenses

All you need to know about Digital Signatures and how to get the Certificate

Digital signature is a technique used to validate the authenticity of a digital document. It provides more credibility to digital communications. A digital signature is defined and dealt with under Sections 2, 3 and 15 of the Information Technology Act. Section 2(1)(p) of the Information Technology Act defines Digital Signature as, “mean authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of Section 3”. In order to obtain a Digital Signature Certificate, there are certain procedures that need to be followed.

 

 

What do you require to apply for a Digital Signature Certificate

 

The following are the requirements to apply for a digital signature certificate: 

  1. Fill Form: Duly filled application form for Digital Signature Certificate
  2. Photo ID Proof: This can include one’s driving license, PAN card, Aadhaar card etc.
  3. Address Proof: Typically, phone bill, electricity bill, rent/sale agreements etc. are accepted as address proof.


Types of Digital Signature Certificate

 

Class 1 Certificates: These certificates are issued to private as well as individual subscribers. These certificates are issued to ensure that the user’s name, email address and other details provided are true and within the database of the Certifying Authority

 

Class 2 Certificates: These certificates are issued to the director or the signatory authorities of the companies. The main purpose of issuing these certificates is for the E-filing of the Registrar of Companies. Individuals who sign all the documents manually and file the returns with the Registrar of Companies, must mandatorily have Class 2 certificates.

 

Class 3 Certificates: These certificates are used for online participation or for people bidding in e-auctions or any online tenders across India. Class 3 certificates are mandatory for all the vendors who wish to participate in online tenders.   

 

 

Procedure for obtaining a Digital Signature Certificate 

 

The following steps need to be followed in order to obtain a Digital Signature Certificate:

 

Log-in to the Certifying Authority’s website: Not anyone and everyone can issue Digital Certificates. There is a list of Certifying Authorities that are licensed to issue Digital Certificates. This list is available on the MCA website and includes authorities such as the NSDL, E-Mudhra etc. In order to obtain a Digital Signature Certificate, one must log on to the site of the Certified Authority and visit the Digital Certification Services section and choose the type of form. For example, whether you want to obtain a digital signature certificate for an individual or an organization, and accordingly one must download the form.  

 

Fill necessary details: Upon receiving the form, the person must fill correctly all the required details. Some of the details asked are class of digital certificates, validity, contact details, residential address, type of digital certificates, GST number if applying for the organization, declaration etc. After filling the form, one must recheck the information provided and thereafter take a printout of the form and preserve the copy of it. 

 

Provide the required proofs: The residential proof and ID proof attached to the form must be attested by an officer. It must be ensured that the sign and seal of the officer is clearly visible so as to avoid any obstruction in the procedure further.

 

Make the payment: The payment must be made in order to acquire the Digital Signature Certificate either by cheque or by Demand Draft in the name of the Local Registration Authority. The details of the Local Registration Authority differ from the person’s city of residence, and such details can be obtained by searching the appropriate certifying authorities licensed to issue Digital Signature Certificate.

 

Send a hard copy of the form to the Local Registration Authority: After filling the form, one must send in an enclosed envelope the following documents to the Local Registration Authority-:

  1. Duly filled application form,
  2. Attested copies of the Residential Proof and ID Proof, and 
  3. Demand Draft or Cheque 

 

A digital signature certificate is extremely important at times of incorporation and during all compliance stages. Having a valid digital signature, makes authentication of electronic records easy and faster.

What You Should Know Before Starting A Restaurant Business
Registration & Licenses

What You Should Know Before Starting A Restaurant Business

Food industry in India is expanding fast. With affordability, eating out has become a part of the millennials’ culture. This has led to many people entering the food restaurant business. In fact, in cities like Bangalore and Hyderabad, many small cafes operated from homes, have also come into existence. However, opening of a restaurant business is not an easy task. There are a number of regulatory requirements involved. We will explain to you, what you should know before you decide to become a restaurant owner. 

 

 

Regulatory Requirements of a Restaurant Business

 

FSSAI (Food Safety and Standard Authority of India) License

This license is also known as the Food License. It is issued by the Food Safety and Standard Authority of India and is a guarantee of the fact that the food served by the respective restaurant is safe to eat. A 14-digit number is given at the time of registration. A restaurant certified by FSSAI is an assurance to the customers that the food provided is according to the safety standards set by FSSAI. A list of documents such as ID Proof, Kitchen Layout Plan, NOC of the owner and many others must be submitted in addition to filling an online form on the FSSAI website. Thereafter one must submit the required documents and the application form and then make a payment of INR 2000 to the Regional/State Authority. 

 

Liquor License 

The restaurants who wish to serve liquor as well in their restaurant must mandatorily obtain a Liquor license from the Local Excise Commissioner. A list of documents is required to obtain a liquor license of which the most important is obtaining a NOC from the State Fire Service department.  However, getting a liquor license is not that easy, after the verification of the documents, a fee of INR 5,000 must be paid.  An additional INR 50,000 must be paid for each additional brand like whiskey, rum, gin, brandy, vodka, etc. 

 

Signage License 

Marketing is essential for any business. Good marketing skills help a person to give fame to his business, but in order to market your restaurant, one must obtain a license. Yes, even for marketing your restaurant you must receive a license. This is known as the Signage License.  In order to market your restaurant through person, logos, symbols or posters one must obtain a legal permit. 

 

Certificate of Environment Clearance 

The restaurant is obliged to take care of the environment as well. It must take adequate measures to ensure that it does not harm the environment in any form. In order to ensure that the restaurant is environmentally compliant, it must obtain a Certificate of Environmental Clearance. In order to obtain this license, one must submit certain documents with the application form to the concerned authorities. 

 

Music License 

In order to play music in a restaurant, a specific license is required. As per the Copyright Act, 1957, those who play pre-recorded music in any non-private, commercial or non- commercial establishments must have a Music license as issued by the Phonographic Performance Limited (PPL).

 

Fire Safety License 

The safety of customers must be the top priority of the restaurant. The restaurant should be designed in such a manner so as to protect the customers from hazards such as fire. Thus, a restaurant must necessarily be fire safety compliant and must obtain a NOC from the fire department. Unlike other licenses, this license must be obtained before the construction of a restaurant starts.   

 

Shop and Establishment License 

This license is required to open a fine dining restaurant or a food truck. As per the Shop and Establishment Act, any person who commences this business must apply for this license within 30 days of starting it. The cost incurred on obtaining this license depends on various factors such as number of employees, location of the restaurant and many more. 

 

 

Conclusion


Though the regulatory requirements behind opening a restaurant are slightly complicated, they can be made easier by seeking legal help. Seeking legal help will not only make your job easier of getting all the necessary licenses but also will ensure the smooth functioning of the business without any legal hindrances.

Power of Attorney in India for Selling Property
Property

Power of Attorney in India for Selling Property

NRIs use Power of Attorney (‘POA’) as an instrument to appoint an agent/attorney to help them sell their properties in India. NRIs find it difficult to come to India and sell their property, and hence, the concept of a power of attorney exists. A power of attorney authorizes its holder to enter into transactions and take decisions on behalf of the actual owner of the property. 

Special Power of Attorney for Purchase of Property: India Format

 

You can find the format of a power of attorney here,. You should draft a POA on a green stamp/bond paper or a non-judicial stamp paper of INR 100. The NRI should authorise the power of attorney himself and the Indian Consulate in the country of residence. Once authorised, the NRI should send a power of attorney to the sub-registrar’s office and relevant witnesses, identity proofs, and photograph copies.

 

 

You should include certain clauses in a PoA to ensure that no loopholes could pose a threat to the NRI/owner/principal in case of a dispute. Some of these clauses are:

 

 

  • Full details of the parties, including relevant information such as name, age, address, occupation, etc.

  • The reason for entering into this agreement (sale or purchase of property by the NRI in India)

  • Termination clause to ensure that the power is not misused beyond the fulfillment of the objective of this agreement.

  • The clarity in the specific powers granted to the agent and the attached responsibility.

 

 

Power of Attorney by NRI to Buy Property in India

 

 

NRIs often purchase property in India for investment purposes or to have a visiting home/holiday home. However, most NRIs do not have the time to come to India to execute the Sale Deed/Agreement for Sale transaction. Therefore, a power of attorney for purchase of property by an NRI facilitates sale transactions legally. Moreover, NRIs would require a special power of attorney to execute a transaction. Through a general power of attorney, no NRI would be able to sell or purchase property in India. 

 

 

A special power of attorney gives an agent the power to act on behalf of the principal (NRI) for a specific matter, including but not limited to taking legal or financial decisions. 

 

 

To have an effective POA for the purchase of property, an NRI must sign the POA agreement in the presence of a consulate officer or Notary in the country of residence. Further, such consulate officers must attest to the agreement for it to be valid. The NRI should register the POA under the Indian Registration Act, 1908, to make it valid and enforceable in India.

 

 

People Also Read This: Get Your Power of Attorney Carefully Drafted by Expert Lawyer

 

 

Power of Attorney to Sell Property in India

 

 

Power of attorney to sell property in India also requires authorization from the country of residence. Let us examine a few countries of residence and the procedures related to power of attorney therein.

 

 

Australia:

 

 

An NRI must book an appointment with a Notary in Australia where the NRI and two witnesses and the Notary officer would sign the POAon a green stamped or bond paper. 

 

 

After notarizing the POA, you would send it to the Indian Consulate, who would stamp it with an Apostille by the Department of Foreign Affairs (DFAT) and then send it back to India to the appropriate authority duty charges prescribed by the local government.

 

 

Then, you can register the agreement, and the transaction can legally take place.

 

 

UK:

 

 

There is a 3-step process when an NRI from the UK wishes to purchase or sell property in India. 

 

 

Firstly, an attorney from India must draft the POA according to the needs of both parties and according to the applicable laws (ICA, 1872, or RERA, 2016, etc.) in India.

 

 

Secondly, the POA must be sent to the place of residence, i.e., the UK, where you can get it notarized by a Notary Public for a charge between 20 to 100 pounds. The concerned NRI, along with two witnesses and the Notary, will have to sign the document. After notarization, the Indian Consulate, located at the Indian High Commission, London, would attest the same. 

 

 

Thirdly, the document can be sent to the attorney in India where registration happens, and the transaction can legally take place.

 

 

USA:

 

 

There is a 3-step process when an NRI from the US wishes to purchase or sell property in India.

 

 

Firstly, an attorney from India must draft the POA, and the NRI and two witnesses should sign this agreement. The notarization of the document should be done in the presence of a Notary Public. Further, it must be sent to the Indian Consulate for his/her signature. An appropriate fee would be charged for attestation, notarization, etc.

 

 

Secondly, the POA must be sent to the Secretary of State for an apostille from the Department of State, Authentications Office, which will use the Seal of the US Department of State to authorize the document's validity will be sent overseas.

 

 

People Also Read This: Legal Considerations to Keep in Mind Before Selling Your House

 

 

Thirdly, the agreement shall be sent to the attorney in India for the legal execution of the transaction.

 

 

The POA is a powerful document and must be drafted between two parties that trust each other. The agent must be selected with caution as the agreement would transfer significant power to decide the owner/principal to the agent. A poorly drafted agreement that does not consider the risks involved (such as consideration, percentage of share between co-owners, obligations of agents, the role of decision making by an agent, etc.) would cause litigation which would severely affect the parties.

 

Permission for Sale of Minor Property
Property

Permission for Sale of Minor Property

The Indian Majority Act, 1875 specifies the age of majority in India. The Act states that the age of the majority in India is “18 years,” and any individual living in India who is below the age of 18 years is a minor. Minors cannot enter into contracts until and unless their guardians enter into contracts on their behalf. Let us find out how one gets permission to sell a minor’s property. 

 

Can a Guardian Sell Property?

 

 

Section 8 of the Hindu Minority and Guardianship Act, 1956 identifies the powers of a natural guardian or legal guardian. Clause (1) states that the natural guardian has all the power to do any act necessary, or reasonable, or proper in the eyes of the law for the sole purpose of such an Act is beneficial to the minor that it shall protect the minor or minor’s estate. 

 

 

Therefore, it is clear from the above provision that a natural guardian can sell the minor’s property (the Act) for the sole purpose of benefiting the minor.

 

 

People Also Read This: Property Rights of a Child after their parent's divorce

 

 

Can a Guardian Sell Minor’s Property?

 

 

The Supreme Court in Saroj v. Sunder Singh & Ors. held that a guardian cannot sell a minor’s share in the property without the permission of the appropriate Court. Furthermore, section 8(2) of the Hindu Minority and Guardianship Act, 1956 states that minors’ immovable property cannot be mortgaged, charged, or transferred by sale, gift, exchange, or in any other mode without the previous permission of the Court.

 

 

Further, Section 8(3) states that if any natural guardian disposes of any immovable property in contravention to clause (2) of Section 8, then such a sale would be voidable at the option of the minor. However, the said minor can challenge such a sale only within the limitation period, which shall begin running against them after they attain the majority.

 

 

Further, suppose a minor, after attaining majority, wishes to set aside the sale deed as such property belonged to the minor. In that case, such a suit must be filed within the limitation period prescribed under Article 60 of the Limitation Act, i.e, 3 years after attaining majority. 

 

 

Can a Minor Purchase Property?

 

 

For a minor to purchase property in India, he or she must enter into a valid contract of purchase and sale of such property. This agreement is known as an ‘Agreement of Sale’. Every agreement shall be a valid contract in India if it fulfils the criteria under Section 10 of the Indian Contract Act, 1872. Further, Section 11 highlights competent to be a valid party in any valid contract in India.

 

 

Section 11 states that every person of the age of majority will be competent to enter into a contract if they are not barred by other conditions mentioned in the section. Therefore, a minor, i.e, anyone who is not of the age of majority (18 years), will not be competent to enter into a contract. Any agreement entered into by a minor will be void ab initio (void from the beginning) the eyes of the law. 

 

 

People Also Read This: Inheritance Rights of Grandchildren in India

 

 

The provisions under the Transfer of Property Act, 1882, especially section 6 and 7 of the Act do not bar a minor from contracting. However, from the conjoint reading of the above two Acts, it can be deduced that a minor can be a valid transferee and receive property. 

 

 

A minor can acquire property through the hands of either his/her natural guardian (mother or father) or through a guardian appointed by the appropriate Court in the absence of such natural guardian. In such a case of acquisition, the purchase of property would be valid. 

 

 

After valid purchase, the natural guardian can register the property in the name of the minor under Section 35 of the Registration Act, 1908. However, the execution of such registration shall take place before the appropriate Court’s permission after satisfaction that the property acquired was legal and valid.

 

 

A minor can acquire a property by way of gift also. Here, there is no need for the intervention of the law, Court, or guardians of the minor. The reason for the same being that in case of a gift, acceptance by the donee is the only required to make it effective.

 

 

Lastly, a minor can acquire property using inheritance, be it intestate or by way of a will. In case of ancestral property of a Joint Hindu Family, the minor (both son and daughter, since 2005) will receive an equal share in the capacity of a coparcener after the death of the last holder of the property.

 

 

Hence, a minor, though not competent to enter into a contract can sell property through his guardians. A minor can also receive property through the means listed out above.

 

Things to Keep in Mind Before Buying A House
Property

Things to Keep in Mind Before Buying A House

Buying a house is one of the most crucial decisions for people in India. In India, investments in real estate and property are a luxury. A person buying a house may need to give up their entire life savings. Or, they end up being burdened with hefty home loans.

 

An investment in buying a house is not something you can easily alter or rectify. Therefore, you must keep in mind a few essentials. This way, you can avoid getting deceived and losing your hard-earned money. Also, what would happen if you did not desire such a house in the first place?

 

Your Budget

 

The first thing you should focus on is your budget. The easy availability of home loans has made people push their budgets. Instead, you should be mindful of setting up a budget to have no unwanted financial crisis in the future.

 

After setting up your budget, you can move to shortlist the available properties. Shortlisting the best possible property will be perhaps the most important task for you. Many key factors lead you to your ideal property. Factors such as availability and supply of key amenities like power and water supply, the infrastructure of the area, and the seller's goodwill are of prime importance.

 

Home Loan Eligibility

 

Secondly, look into your eligibility for a home loan. There are various factors that reduce your eligibility for a home loan. Before financing the loan, the financing agencies will look into your credit score. This determines your repayment capacity, existing loans, income, and age.

 

Many financing agencies provide a home loan calculator on their websites. You can use them to check your eligibility. Banks and financing institutions are also concerned with the reputation and goodwill of the builders. If they are not satisfied with the builder, they will not process the loan.

 

People Also Read This: Property Registration Online Procedure and New Rules in India

 

Verification of Documents

 

People usually rely on their brokers to verify the documents related to the property. This is a bad practice because you can be misled by your broker (either intentionally or unintentionally). Therefore, verifying the property document yourself is important.

 

You should conduct the necessary due diligence in verifying the title documents of the property. Documents such as any government order for grant, gift or sale deed, succession certificate, etc. will form the evidence for transfer of the property over the years. Therefore, understanding the nature of the title is also important.

 

Background Check of the Seller

 

While buying a property, you cannot overlook the identity of the seller. While buying a property, people are often interested in just the property. So, verifying the credentials of the seller is not a top priority. But, you must look into the authenticity of the seller. E.g., Check whether the seller has government authorization to sell the property.

 

In the case of joint property, identify all the owners involved. Identifying whether the seller is a company, firm, partnership firm, etc., is essential to confirm their authority to own and transfer the property. Verify all the documents that ascertain the seller's identity (Aadhar Card, PAN details, Income Tax returns, etc.).

 

Awareness about the type of Land

 

Be aware of the land use pattern. Many state laws in the country prohibit the purchase of agricultural property by non-agriculturists. However, with increasing urbanisation in the country, non-agricultural land use is at an all-time high. As a buyer, be aware about the master plan of the project and ensure that the property is being developed per the zoning plan.

 

RERA compliance

 

Don't overlook RERA compliance while buying any property. You should only engage with those projects which are registered under RERA. Make sure that all the essential provisions under RERA are adhered to.

 

Moreover, try to find dig-up any cases or complaints filed against the developer on the official web portal of RERA (each state has its website). Along with the developers, real estate brokers should also be registered with their respective state RERA. Therefore, only appoint a broker after verifying their RERA registration number.

 

People Also Read This: Legal Considerations to Keep in Mind Before Selling Your House

 

Property Insurance

 

Property insurance or home insurance is indispensable. Insurance will cover your expenses in case of any damage or loss. Moreover, it will also protect you from any third-party liability arising from any sort of injury faced by such a third-party on your property. Home insurance minimizes the financial burden in such cases.

 

Ideal home insurance will also be applicable on the contents of your property, which includes: electronic appliances, furniture, and even jewellery. You can claim such insurance even if there is any theft or robbery. Therefore, you should insure your property as it provides economical protection and covers potential risks.

 

Physical Survey

 

A physical survey of the project site is of equal necessity. In today's era, you can be fascinated and influenced by the advertisements surrounding you. However, more often than not, these advertisements lead to misconceptions about the project.

 

Therefore, make it a point to mandatorily visit the project site before proceeding with the purchase. You should verify the basics, like the exact extent and measurement of the property. In the case of the Land on which the property is built, you should identify and demarcate the boundaries.

 

Conclusion

 

Those mentioned above are just a few basic due diligence methods. You must understand that the points mentioned in this article are by no means an exhaustive list. You, as a buyer, should conduct an elaborate due diligence process to ensure that your investment is viable.

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