Property registration is a critical affair and many people tend to commit many mistakes which can cause them huge penalties or delays in the registration. It is very significant to have a real estate lawyer as an advisor while registering your property. If you know the correct course of action to be taken, you can register your property within a reasonable timeline and can avoid unnecessary delay. In this article, we will talk about the do's and don'ts of property registration.
Vital Do’s While Registering A Property
Consultation with a good real estate property agent or lawyer
A person's decision to invest in Property Registration in India, also known as 'fixed property' or 'immovable property, is often the most important decision in their lifetime. When it comes to investment, rental yield, and quality of life, you might want to talk to reputed agents in the area(s) you're considering.
Know your Expenses
Financial preparation is the first step to making any significant financial investment, including apartment hunting, and it is an essential part of the process. Calculate your disposable income after covering essential living expenses by keeping track of your monthly income and outgoings. To determine how much money you have for a down payment, you need to analyze your liquid assets, such as savings and investments.
Read your Sales Agreement Thoroughly
There is no doubt that the Offer to Purchase (OTP), which once signed, becomes the sales agreement, can be somewhat lengthy. You should read the contract thoroughly and seek clarification if necessary in order to understand your rights and obligations. To understand the finer points of such a document, conveyancing attorneys are useful, as they can aid in deciphering them.
Inspect the Property Properly
If you want to maximize your return on investment, you must enter a real estate sale with realistic expectations. Unless you know the property's history, current condition, and any necessary repairs, you cannot make a fair offer. As most properties are sold voetstoots, which means without guarantee or warranty, it is important to examine them thoroughly to identify any defaults the seller may need to address.
Be Prompt With Communication and Payments
While some things cannot be prevented during the property registration process, others are within the control of the parties to the transfer and should be avoided. One should always be very prompt in their communication and payments of registration fees and stamp duties. Any delay or omission in payment can be the reason your property will take an eternity to get registered.
What are the big Don’ts in a property registration?
Not verifying the ownership of the Property
Before registering a property, it is important to verify the ownership of the property. Failing to do so may lead to legal disputes later on, giving unnecessary hassle or trouble to the new buyer.
Not verifying property documents
It is important to verify the authenticity of the property documents before registering the property. Verification of necessary documents like sale deeds, property tax receipts, and NOC from the society should be done.
Non-payment of stamp duty
Stamp duty is a tax that needs to be paid on the transaction of a property. Not paying stamp duty can lead to legal consequences and also affect the validity of the property. Hence, payment of stamp duty is one of the most important steps.
Getting an unclear title
It is important to ensure that the property has a clear title and there are no pending disputes or litigation on the property. One should ideally do a title search of the past 30 years before registering a property.
Not getting the property valued
It is important to get the property valued by a professional valuer to ensure that the property is being bought at a fair price.
Don't ignore property encumbrances
It is essential to check for any encumbrances on the property, such as mortgages, liens, or easements, before registering it. Ignoring encumbrances can lead to legal complications and financial losses for the buyer. Property encumbrances refer to any legal liabilities, claims, or charges that are attached to the property, the buyer may become entangled in legal disputes with the previous owner or other parties involved in the encumbrance. If the property has any unpaid loans or mortgages, the buyer may be held responsible for paying them off. This can result in financial loss and reduce the value of the property.
Don't forget to pay all the taxes
In addition to stamp duty, you may also need to pay other taxes such as property tax, capital gains tax, or TDS. Make sure you understand and pay all the applicable taxes.
In summary, while registering a property in India, it is important to be cautious and thorough to avoid any legal issues or disputes in the future. Seeking legal consultation from a property lawyer can further enhance the registration process and provide valuable guidance.
In desirable areas, real estate investments can yield higher returns than others due to strong appreciation rates. The property rate in some areas, however, remains relatively unchanged due to a lack of growth. The location of the house also impacts the rent being collected.
It's prudent to settle for a location with a good chance of success in the coming months or years since many people struggle to afford a home in a desirable, developed neighborhood. Make sure you've done your homework before investing and understand the full potential of the business before making any investment.