Legal Tips for Buying a New House

In India, buying a house of your own is like a dream come true but if you are not aware of the essential laws pertaining to buying a new house, it can turn into a nightmare. Builders and property dealers will show you their glossy brochures and pricing models but they will not educate you with necessary legal tips while buying a new house.

Essential Legal Tips

You can visit any builders and property dealers but many of their projects may be visible only on well-crafted brochures. Be wary because you cannot afford to take chances with your hard earned money.

Here are some basic legal tips to apply:

• Ask how the payments will be spread and whether there are any eventual penalty clauses in case of delay in completion.
• Find out in the market whether the builders you plan to finalize are known to use good quality materials and employ skilled workers. Check whether they keep their customers informed about the progress of each phase of construction.
• Ask builders and property dealers to show you any of the projects they had completed before and enquire about the level of customer satisfaction on those projects.
• Find out whether nationalized banks have already approved of the project and confirm it directly with these banks.
• Ask whether the building permits have been obtained already.
• The planning authorities in the state will be able to give you a document that shows the building regulations and restrictions for the plot that you intend to buy.
• The sub-registrar who is in the jurisdiction of the area that you plan to invest in is the appropriate person who would know the market value of the property.
• Do thorough homework about local property taxes, local stamp duty rates and construction bye-laws and local municipal laws.

Remember, you will be dealing with a variety of complex documents that require your review and signature on it. Before buying a new house, verify these documents, understand what they mean and confirm your understanding with a lawyer before you proceed with the purchase of your new home.