Property Buyers Guide
Planning to Buy, Sell , Rent Property in Haldwani ? Property Our Property Buyers Guide will help you to get Genuine, and Best Property transaction in Haldwani.
Property Buyers Guide to Residential Land / Plot.
• What is the total cost of acquiring a property?
• Does the site provide as much space as you need?
• Is public transportation available for passengers and students ?
• Is the location going to develop soon ?
• Is the site located at a popular area ? If not, you will have to spend a lot of money in transportation.
• Are basic utilities available (E.g. water, electricity, sewer, gas etc.)?
• What is the history of the site?
• Does location has a hospital , Banks, General store, Vegetable shop, Dairy nearby,schools.
Property Buyers Guide to buy Commercial Land / Plot.
If you are looking for land to start up a business please consider following points to evaluate the location that you have chosen, answer the following questions:
• What is the total cost of getting a property?
• Does the area you are looking for provide as much space as you need?
• If buyers visit your place of business – Is Sufficient , convenient and safe parking available? & Is public transportation available?
• Is the location likely to develop “drop in” or “impulse” consumer traffic?
• Is the site located at a popular area? If not, you will have to spend a lot of money marketing your product/service reducing your profits!
• What other types of businesses are located around your site? Are they going to compete with your business?
• Is fire protection close by?
• Are basic utilities available (E.g. water, electricity, sewer, gas etc.)?
• Are you going to be transporting products from one part of state to the other? If so, are the express-ways located close to your location?
• What is the history of the site? What types of businesses were previously run at the site? Why are these businesses no longer there?
After seeking answers to these questions you will be able to get a good judgement of how good the location you have selected is.
In some businesses some questions are more important than other questions. For E.g. If you are in the manufacturing business, you will not have too many customers coming to your site. So you do not have to bother about customer parking. If you are in the retail business, customer parking is an important factor.
Check the “Legal Documents”
Title Deed / Certificate of Title of the Land:
What is a Title deed?
A title deed is “a legal document proving a person’s right to property” as defined by a law dictionary. An advocate prepares a title deed after studying and scrutinizing the property and verifying that all is in order.
So as a buyer what you need to do is ask the owner of the land you wish to purchase for the tile deed and review it properly. Do not accept a Xerox copy of the deed. Ask for the original “Title Deed”. Some times the seller might have taken a loan and given in the original deed to the bank.
You need to make sure through the title deed that the land is in the name of the seller. Also you need to verify that he has full right to sell the land and that he is the sole owner of the land and no one else is. It would be wise to get the title deed reviewed by a trusted lawyer just to make sure that there are no loop holes.
As a buyer you may also ask for previous title deeds of the land and get these verified too by a lawyer.
Ask for the “Encumbrance Certificate“:
The next step is to demand an “Encumbrance Certificate”. This is basically a certificate that says that the land is not under any sort of legal dispute. The encumbrance certificate can be obtained from the sub-registrars office where the deed for the land has been registered. The encumbrance certificate for the past 13 years should be taken and verified. You could even ask for the encumbrance certificate of the last 30 years for more clarification.
In the case of “Pledged Land”:
Some people may have pledged their land previously for taking a loan. In this case, it would be wise to ensure that all the loan payments have been made and that no amount is due. Ask, the seller to produce the “Release Certificate” from the bank that is necessary to release all debts over the land legally.
Measure the land:
Get a recognized surveyor to measure the land and see that the dimensions, area, borders etc are accurate as stated by the seller.
If there is more then one owner:
If there is more than one owner, it would be wise to get a “release certificate” from everyone involved before going ahead with the process.
If the owner is an NRI:
If the owner of the land is a NRI, then the seller of the land in India should be given “Power Of Attorney” to sell the land on behalf of the NRI. The power of attorney has to be signed by an officer of the Indian embassy in the presence of a witness.
After all these initial checks are made you can go about the actual process of buying the land.
Once all the initial checks are made and the land to be bought is properly examined and the negotiation of the price is done, comes the process of actually buying the land.
The first step of actually buying the land is to draft an agreement between the parties involved in the transaction. An agreement is made to make sure that none of the parties involved in the transaction change their mind and go back on what has been decided about the transaction.
This agreement has to be made on Rs.50 stamp paper.
The agreement should cover the following basic things:
• Agreed cost of the land between seller and buyer.
• Advance amount given by the buyer.
• Time span in which the actual sale should take place.
• What procedure has to be adopted if any of the parties default on the agreement.
• How the losses have to be covered if any of the parties default.
• Particulars of the land.
An experienced lawyer should carefully draft this agreement. Many a times, because of an agreement that is not well drafted it becomes possible for one of the parties to default and get away with it.
Along with this agreement, the agreed advance has to be paid by the buyer. After the document is drafted and verified it has to be signed by both parties and two witnesses.
The next step is to prepare a title deed. You could get the title deed written by a government licensed “Document Writer”.
Even lawyers can prepare the deed, but the document can only be computer printed or typed, not handwritten. Only those who hold the “scribe license” can prepare handwritten documents. Make sure all the details mentioned are accurate.
After the agreement is prepared, the next step is “Registration”
The land is to be registered in a sub registrar office. If there is in-correctness in the documents after registering, new documents with the correct details have to be registered and depending on the in-correctness, the registration expenses will have to be repeated.
Make sure that the title deed is registered within the time limit mentioned in the agreement.
Along with the title deed, the other documents that are required for registration are:
• Original title deed
• Previous deeds
• Property/House Tax receipts
•Torence Plan (optional) etc.two witnesses are needed for registering the property.
What is a Torence plan?
Torence plan is a detailed plan of the property prepared by a licensed surveyor that will have accurate details of the measurements including width, length, borders etc. This plan is needed only in some specific areas.
For land costing more than 5 lakhs, the seller should submit either his Pan card or Form Number 16 during registration.
The Expenses Involved
The expenses involved during registration include Stamp Duty, registration fees, Document writers/ Lawyers fees etc.
The stamp duty will depend on the cost of the property and varies from location to location. 2% will be charged as the registration fees. Document writers fees also depend on the cost of the property and varies with individuals. There is a percentage prescribed by the government as Document writers fee and they cannot charge more than the prescribed limit.
The actual process of registration at the sub-registrars office:
• Take all the documents mentioned above.
• Submit the document along with “input form” at the token window and get the token number.
• Wait till the token number is announced.
• On token number being announced, all parties to the document must present themselves before the sub-registrar to admit execution of the document, photographed, thumb impression and signature taken on additional sheet of paper in presence of sub-registrar.
• Pay the required registration fees and computer service charges in cash as per the receipt (Computer service charges are @ Rs.20 per page).
• The document will be returned within 30 minutes of getting the receipt.
Note: Please deal only with Officers and staff of the Registration Department who always display government identity card with Government Seal.
Having completed all the above formalities, your land is now registered in your name. Congratulations!