Buyers get cheated by individuals who project themselves as builders, developers, and financial advisors having membership of Multi Commodity Exchange (MCX), or, when a buyer is unaware of the legal know-how of property buying
Deepshikha Chauhan
If you are planning to invest you’re hard earned money in buying a house for yourself, be vigilant, and do not trust the big brands blindly. About 250 people trusted a big market brand and invested in the controversial realty developer Supertech's two under-construction 40-storey towers in Noida. Today, they all feel cheated. After they’ve invested most of their money, they have come to know that the high rise buildings are being constructed
illegally.
Such instances of being cheated by sellers/developers in the garb of big names and brands is not knew, people often get cheated by believing in individuals who project themselves as builders, developers, and financial advisors having membership of Multi Commodity Exchange (MCX), or, when they are not aware of the legal know-how of property buying. Taking advantage of buyer's unawareness, the seller/developer then gets a chance to over-promise, over-price, and also safeguard their vested interest in case they fail to deliver. To ensure buyers do not get cheated and have a comfortable sleep once they have booked their dream house, it is imperative they consult a good lawyer and take his legal opinion before they think of investing in property.They should also ensure, the lawyer hired checks all the documents related to the property and gives a written opinion that the documents are in order before the purchase deed is signed. Here is a checklist of the documents your lawyer should check to ensure you’re heading the right way:
- The sale deed should be in present seller’s name
- Property’s Khata certificate from the Municipal Corporation
- Latest receipt of the text paid
- If there is an outstanding loan on the property, there should be one latest statement from a bank
- Encumbrance Certificate from date of purchase till date
- Agreement of sale and construction executed by developer in the favour of the seller
- Latest electricity bill & receipt for the flat
- NOC from Apartment Association
- Sanctioned building plan
- Possession/occupancy certificate from builder
- All title documents of land owner
- Joint development agreement, GPA, Sharing/supplementary Agreement, between land owner and builder
- Ensure originals are available for inspection if no loan is taken
- A Copy of all registered previous agreements (in case of re-sale property)
- RTC (Records of Rights and Tenancy Corps) or 7/12 extract
- Conversion Order issued by the concerned authority
- Registered development agreement (In case of Joint Development Property)
- Original copy of power of attorney/s if any
- Photocopy of Society Share Certificate and Society Registration Certificate.
Speaking on the issue, D Bhattacharya, real estate advocate, Supreme Court, Delhi said, “The buyer should ensure the seller has the right / ownership of the property and regulations of the construction land. The sanction plan and completion certificate from the authority of the project is very important. In the Supertech case, buyers relied on the brand name without knowing the pros and cons and are no waiting for the court to direct the Supertech developers to compensate for their loss.”
Hitesh Kumar, real estate lawyer, with A&R Associates, a legal law service firm in Dwarka Sec-5, said, “All the approvals have to be in place. The home buyers are mostly unaware and do they not ask the developers if he has all the civic approvals for the property or not. To be on the safe side, the buyers should ensure all such approvals from the municipal bodies like building plan approvals, floor plan approvals, NOC from the civic authorities, structural safety
certificate, environment clearances and others are taken, to avoid future troubles.”
A good lawyer will safeguard his buyer’s interest, and will provide him the best paperwork details right from the scratch until the transaction is finalized to save him from future tangles involved in property investment. Now, since it is your money at stake, take the final plunge only after you’ve taken an independent and unbiased legal opinion.
( With inputs from and Monica Sangwan)
