Popular FAQs: Real Estate Laws in India

When you are investing in real estate, a number of questions may arise in your mind. More so, you may not even know what to ask. The following are some basic questions that every investor should ask and find the answer for in the context of real estate laws in India.

Real Estate Laws: What You Should Do Prior to Land Registration?

In real estate laws, the first thing that you are advised to do is to get in touch with a licensed or well known land surveyor. The surveyor can take the exact measurements of the land including its borders. It saves you from a number of troubles later. It is also advisable to contact the Survey Department and obtain a survey sketch of the land but this is not easy to accomplish. Red-tapism in these departments makes it difficult for an ordinary person to get the sketch. However, give it a try. This comes in handy when you want to make a comparison to assure yourself of the accuracy of measurements. 

Real Estate Laws: What are Property Taxes?

Real estate laws require you to be aware of property tax. Property tax is calculated on the basis of the value of one’s property. The exact term used for this is “ad valorem.” The appraised or assessed value of the property changes when there is any change in the value of the property. Property taxes are also sometimes assessed using non-ad valorem assessment methods. These methods include fixed amount for every acre, lot or housing unit. In many cases, both real and personal property are taxed by property taxing units. However, lately, the practice of levying taxes on stocks, bonds, bank accounts and other intangible assets is decreasing.

Real Estate Laws: What Issues You May Face Regarding the Title Deed?

Having the original title deed is essential as per real estate laws in India. Be wary of title deeds where the seller is not be the original owner of the land. Another important safety consideration for buyers is to demand the original copy of the title deed. If the seller produces only the Xerox copy, think twice about whether you want to go ahead with this title deed. Remember, real estate involves huge sums of money and you can be cheated. Be wary of any sellers who do not have an original copy of the title deed. Also, find out if the seller may have taken a mortgage on the original deed. When you get the original deed, consult with a lawyer and get it thoroughly reviewed by him/her. As a buyer, you also have the right to look at the previous deeds, if any, of the land.

Real Estate Laws: What is the importance of an encumbrance certificate?

Real estate laws in India require a buyer to obtain an encumbrance certificate. This is a very important document that certifies that there are no legal dues and complaints associated with the subject property. As a buyer, it is essential for you to obtain this certificate from the office of the sub registrar, where the deed was registered. To obtain more clarification regarding dues, you can ask for the encumbrance certificate of the past 13 years or even 30 years,

Real Estate Laws: What Other Particulars should Tax Receipt and Bills be checked for?

The following should be checked by you:

• Make it a point to ensure that the seller has paid all taxes associated with the property till date. For this, you need to enquire in the government and municipal offices. Also, ask for the recent tax paid receipts from the seller.
• Enquire if there is any notice or requisition has been issued to the seller in the past against the property. Confirm that there is no pending notice and everything has been complied with duly.
• Inspect the property tax receipt for correct names.
• In case the seller does not have a tax receipt, you need to enquire about the original owner of the property at the village office. Don’t forget to take the survey no. of the property with you.
• Last but not the least make sure the electricity and water bills have been paid duly by the owner. .