sri krishna builders - FAQ's Buyer

What should a purchaser keep in mind while purchasing a residential Site?

Some of the factors a purchaser must keep in mind while purchasing a residential Site are:

Locality i.e. transport, schools, hospitals, market, business district, entertainment centers, hotels, restaurants, pollution levels

Quoted area of the Site

Reputation of the developer or seller

Sufficient water and electric supply, other utilities of the area

Cost components : price, stamp duty, registration charges, transfer fees, monthly outgoings and society charges, costs of utilities

Potential for resale of the property

Any other distinguishing features or advantages of the property

Should I inspect a property before buying it?

Yes. Buying a site is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property before you buy, so that you can minimize unpleasant surprises and difficulties at a later stage. A close inspection points out the positive aspects of the property, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.
You need to investigate the condition of the property and all its systems.

Checklist for buying residential or commercial property.

Market Trends about prevalent rates of property in the vicinity and last known transactions

Identify the property you wish to purchase

Formulate commercial terms

Distinguish between terms and conditions of the contract which are negotiable and those, which are fixed eg. Price, payment schedule, time of completion etc.

Ask for photocopies of the all deeds of title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property. The title of the Vendor to the property must be clear and marketable.

Finalise commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.

Ascertain outgoings to be for the property i.e. property tax, water and electricity charges, society charges, maintenance charges.

Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the (a) society (b) the income tax authority (c) Municipal Corporation (d) the competent authority under the Urban Land Ceiling and Regulation Act (e) any other authority

Will you require a loan for making payment of the consideration amount. Ask for a pre approval letter from the lending institution

Permanent Account Number of Vendor and Purchaser under Income Tax laws Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration

After payment of the entire sale price, take over legal possession of the property along with documents of title in original from the Vendor of the property

Change name of the holder of the property to the purchaser in the records of the society, Electricity Company, municipal corporation, Index II etc.

What is a Sale Deed?

Sale Deed also known as conveyance deed, is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. This document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.

What is a Draft Sale Deed?

A draft Sale Deed, containing full details of the parties, advance amount paid, mode of balance amount payable, receipt of the balance amount by the seller, handing over the original documents of the property, handing over the possession of the property, handing over the authorization letter to transfer power and water meters, signing of the application for transfer of khatha, title of the seller of the property, indemnifying the purchaser in case of defect in the title, easement rights, will be prepared by the purchaser's advocate. Such draft Sale Deed should be captioned as draft Sale Deed and shall be signed by the purchaser's advocate.

What is Khata?

A Khata is an account of assessment of a property, recording details about your property such as size, location, built up area and so on for the purpose of payment of property tax. It is also a kind of identification of the person who is primarily liable for payment of property tax.
It is one of the required documents in case you require a building licence, trade licence or loan from banks or any other financial institutions. It is mandatory for all property owners/holders to pay property-tax, hence you need a khata.

What is the difference between a Khata and a Title Deed?

A khata is an account of assessment of a property for the payment of tax. The khata does not confer ownership. However, the title deed is the document through which a person derives a title or ownership of the said property.

What is Leasehold Property?

Leasehold Property is property leased to a lessee for a stipulated period. The Lessee pays lease premium and annual lease amount as fixed by the Lessor. The land ownership rights remain with the Lessor and a prior sale-permission is normally required if you plan to transfer the property.