Monday, September 28, 2015

NEXT STEP AFTER PURCHASE OF PROPERTY

NEXT STEP AFTER PURCHASE OF PROPERTY

The activities to be undertaken by the buyer of immovable property may be loosely classified into: Pre-registration and Post-registration activities.

Pre-registration requirements:Pre-registration activities involve characteristic the situation of the property, ascertaining the valid and marketable title of the seller, Legal scrutiny report, Mode of payment, Sale Agreement, etc. Before registration of the sale deed, it's important to verify all the relevant documents in original, in order to rule out subsistence of any kind of bank mortgages or encumbrances.

As the purchase of a property involves investment running into lakhs of rupees, availing the services of AN Advocate having enough expertise in property transactions would vastly facilitate the intending buyer in protective his right, title and interest in the property.

Post-registration requirements:Post registration activities are the steps to be undertaken by the buyer once registration of the sale deed. There are certain requirements to be fulfilled so as to urge valid title and to exercise ownership over the immovable property by the Purchaser.

The following are the essential activities needed to be administered by the purchaser:
1.To obtain Original Documents: the primary and foremost activity to be performed by the buyer is to get original documents of title from the vendor and compare them with the Xerox copies, that the purchaser’s advocate would have scrutinized. If the advocate necessitate alternative original documents or certified copies, guarantee production of a similar. it's forever recommended to use for certified copies of the sale deed.

2.Encumbrance Certificates: it's conjointly necessary to register the applying for updated encumbrance certificate within the Sub-Registrar workplace on the day of registration itself, that shall be from the date of stepping into AN agreement to the date of execution of sale deed.

3.Possession of property: Physical Possession of the property is of significant importance. it's recommended to examine the property each day prior to registration to create certain that the property is as per the sale agreement. one in every of the clauses to be incorporated within the sale agreement is that the seller shall deliver vacant possession of the property and also the buyer shall receive all the keys of the property at the time of registration. If need be, one could amendment the most door lock itself.

In case of vacant sites, it's necessary to place up a board with the wordings “This property is in hand by………….. Trespassers are going to be prosecuted”. Fencing of sites or putt up compound walls, tho' costly, is preferred. Periodical visits to the positioning are a requirement to notice any reasonably encroachment.

4.Transfer of Khatha and Khatha Extract of the property: once registration of the sale deed, the buyer should make sure that the Khatha within the records of the native bodies like Gram Panchayath, CMC or town Corporation is transferred in his name. For such transfer, it's necessary that each the customer and also the seller have to be compelled to sign the applying for transfer of Khatha, that is finished at the same time whereas language the sale deed. this is often necessary to avoid superfluous disputes and complications in future.

Duly crammed Khatha transfer applications have to be compelled to be bestowed before the involved workplace, together with a duplicate of the sale deed and receive necessary acknowledgement.

At the time of execution of sale deed, the seller should sign the subsequent documents:
- Khatha transfer application,
-Letter for transfer in favor of the buyer of Statutory deposits for electricity meter,
-Letter for transfer in favor of the buyer of Statutory deposits for water, sanitary affiliation,
-just in case of used sale of living accommodations, letter for transfer of living accommodations Membership and Corpus fund should be obtained by the buyer from the vendor.

The following is that the procedure concerned for transfer of Khatha:
- To gift an application within the prescribed type within the workplace of the City/Town Municipality or Corporation having jurisdiction together with the supporting affidavit giving all particulars needed within the application. within the affidavit, it's necessary to declare that you just are this owner.
- to surround certified copy of the sale deed with the most recent tax paid receipt of the property.
-To furnish Khatha Certificate within the name of your marketer.
-The sketch showing the neighbourhood giving particulars of the ward or zone, name of the road, etc and deposit the fee fastened.

Local bodies transfer Khatha within the name of the buyer once grouping a transfer fee that is mostly two of tax paid on the sale deed and issue written confirmation of transfer within the name of the buyer. Whereas transferring the Khatha, native bodies, re-assess the property and issue assessment notice within the name of the buyer. Further, tax paid receipt ought to be within the name of the new owner.

For the properties returning among the jurisdiction of BMP, computerised Khatha Certificate and Khatha Extract are going to be issued. Khatha Certificate is an attested document to prove the possession and possession of a selected person over the immovable property. whereas Khatha Extract reflects the particular sital space and engineered up space, if the building is existing. Further, land tax needed to be paid will be mirrored within the Khatha Extract, which is able to be found out once review.

5.Building License and Plan: If you're desiring to create material alterations or proposing to construct a brand new building on the property noninheritable  by you, it's necessary for you to urge the license and set up approved the native bodies among whose jurisdiction your property falls. this may be obtained solely once depositing the prescribed fees. so as to urge the License with approved set up from the authorities, the Khatha of the property should change your name within the revenue records of the involved native body and up-to-date taxes need to are paid. The conventional procedure for securing License with approved building set up is to get ten sets of blue prints of plans from commissioned architect/building engineer.

Construction should be commenced once the license is obtained and may be completed among two years from the date of getting the license and approved set up, which is able to be stipulated within the set up itself. However, you'll get an extension if the development couldn't be completed among the stipulated amount. Once the development of the new building is finished, you need to get such a house/building assessed anew and pay taxes as determined by the involved revenue authorities.

6. Power connection: once Khatha is transferred within the name of this owner, this owner should guarantee on whether or not the statutory payments/deposits in respect of the property together with the electricity charges are paid among the stipulated time. If recent or new electricity affiliation is to be obtained, it's essential to enlist the services of the commissioned Contractor. Variety of deposit to be created depends upon the requisitioned load or number of kilowatts needed. just in case the property is already maintained with electricity, an application should be bestowed by the buyer within the prescribed type before BESCOM or alternative competent authorities having jurisdiction, inclosure an official document declaring that you just square measure this owner and by filling up the particulars needed within the application together with the consent letter of the previous owner for such transfer. later on, the electricity meter are going to be transferred within the name of this Owner.

7.Water and sewerage connection: The buyer ought to conjointly verify the statutory payments/deposits created by the previous owner and collect such deposit receipts from the vendor. For recent connections, it's fascinating to enlist the services of a professional pipe fitter. Just in case your property already has water connections, then same procedure PRN for amendment of power affiliation should be followed. However, the documents are to be bestowed before the involved authority.

8. Corpus Fund and Club Membership: If the buyer desires to purchase an living accommodations, it's conjointly necessary that the seller should issue a letter for transfer of corpus fund and club membership within the name of the buyer.

9.Bank Loan:In case the buyer needs to avail loan then the buyer is needed to deposit all the relevant title documents in original with the Bank and acquire endorsement thereto impact from the involved Bank. However, it's recommended to stay xerox copies of such documents supposed to the deposited within the Bank for private records.


Thus, mere execution of the sale deed doesn't mechanically confer the title in favor of the buyer. an individual will fancy legal and peaceful possession and delight of the property solely once the post-registration activities are completed.

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