Which documents are to be verified before purchase of a Flat ?

Before you purchase a flat, you have to have a title and document search conducted by a competent advocate. You cannot do it yourself. You have to use the services of a competent advocate. It is a professional job to be done with professional assistance.

Carpet Area: This is the area of the apartment/building which does not include the area of the walls. Built up Area: This includes the area of the walls also Super Built up Area: This includes the built up area alongwith the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units.

What are all the important documents one should check before buying any property ?

If you want to purchase a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout search, etc. Contact an advocate before you purchase a property so that he can advise you.

Who is liable to pay Stamp Duty-the buyer or the seller?

The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.

In whose name are the stamps required to be purchased ?

What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement ?

Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value which ever is higher.

Which are the instruments that attract the payment of Stamp Duty ?

The instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.

Who is the appropriate authority for knowing the market value of the property ?

The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.

What are the risks associated in buying a flat on Power Of Attorney (POA) basis ?

Purchasing a flat on a POA basis is not permitted under the law of the land.

Is a POA revocable ?

What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any ?

How to convert a POA flat into a Free Hold one ?

POA cannot be converted into anything. Leasehold properties of DDA in Delhi can be converted to freehold, as per provisions.

How to verify the authenticity of the various documents submitted by the seller of the house, particularly with regard to the possibility that the house has not been sold earlier to a third party ?

Regarding authenticity of documents, again, you have to take the help of an advocate to verify.

Do we have any agency in Delhi which can provide a comprehensive service under one roof for hassle free purchase of society flats for its customers ?

A flat in a Co-op Hsg. Society is to be gifted. What are the legal formalities? What about stamp duty ?

Gift of an immovable property is considered as a 'transfer' under the provisions of the TOP Act and you have to have the transaction registered through a Gift Deed and pay stamp duty as per provisions of the relevant stamp act depending in which state the property is situated.

Upon buying a flat from a builder in a building under construction, what are the permissions and papers that one should check with the builder, so as to ascertain the genunity of the builder ?

• Approved plan of the building along with the number of floors.
  
  
• Ensure that the floor that you are buying is approved.
  
  
• Check if the land on which the builder is building is his or he has undertaken an agreement with a landlord. If so, check the title of the land ownership with the help of an advocate.
  
  
• Check the building byelaws as applicable in that area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc.
  
  
• Check specifications given in the agreement to sell of the sale brochure. Is he providing the same actually on the ground or not?
  
  
• Check the reputation of the builder.
  
  
• Ensure that urban land ceiling NOC (if applicable) has been obtained or not.
  
  
• NOC from water and electricity authorities also have to be obtained.
  
  
• NOC from lift authorities.
  

Before buying property, it is advisable to appoint a solicitor to inspect the original title documents of the property being purchased. If the title is not clear, the number of complications arising in future may be numerous. For eg., no bank would provide a loan against a property not having a clear title, it may be difficult to transfer share certificate of the society in your name, selling of property will not be simple, etc. The following is a check list of documents that you should verify before buying a property -

Conveyance Deed or Sale Deed - This is a deed document by which the title of property is conveyed by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. This document will help you ascertain whether the property which you are buying is on land belonging to the society/ builder/development authority in which the property is located.

7/12 Extract - This is a document issued by Tehsildar or the concerned land authorities giving details such as the survey numbers, area, date from which current owner is registered as owner.

Index II - This is a document issued by the office of the Sub-Registrar of Assurances. It mainly mentions the names of the sellers & purchasers of a property for which the document is registered

Search Report & Title Certificate - Title Certificate is issued by an advocate after conducting a search on the title of the property, which is intended to be purchased. The title certificate would state if the property is unencumbered and has a clear marketable title. This search report and title certificate can be obtained from one's own advocate or if the search has already been conducted by the current owner then one can have his/her advocate inspect these reports to ascertain the title of the property. This search on the title of the property is taken for a period of the last 30 years. It is mandatory for the developer to annex a copy of these reports in the "Agreement for Sale" with the intended purchaser of the flat. These documents would state whether the title to the property is clear, marketable and free from encumbrance. In other words, it would state whether or not there is any existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely.

Non Agriculture Permission - If the land under consideration is agricultural and if one intends to develop the said land for residential/commercial/industrial use, then such agricultural land has to be converted to non-agricultural land and an Non Agriculture Order has to be obtained from the Collector of the District where the property is located. Along with this, one needs to take the latest receipts evidencing the payment of Non Agriculture Tax. In cases where the conversion from agricultural use to non-agriculture use is not done within the stipulated period then, there should be an order from the concerned authority extending the period.