Monday, 8 March 2021

Why should you hire a property or real estate lawyer while buying a property?

 Buying a property for a common man is a complex matter because it takes a lot of thinking to zero down on a particular one which is free from any encumbrance or other type of problems.

To ensure that such a process is easy on the buyer for many reasons including his pocket, a good property lawyer should be hired. There may be an agent associated with such a real estate prospect but they can also fool their customer into believing that there are no better options available but this particular one.

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Following functions need to be carried out and only a lawyer can do so effectively:

1. Clear and transferable title of the seller:- First and foremost requirement is to ascertain that the seller of the property is has a clear and transferable ownership rights in the property. A person cannot transfer a better title than he himself enjoys. This has to be verified by perusal of the “Mother Deed” and chain of title ending with the present seller.

2. Search for title and records of right:- Based on information contained in the mother deed, records need to be searched with various govt. bodies / offices such as Public Index in the Municipal office, Local registration office, Land reform office, Land Revenue office etc to confirm that the present seller is the real owner and is entitled to transfer the ownership rights in the property.

Consult: Top Property Lawyers in India

3. Search for encumbrance, charge:- It must be ensured that the proposed property is not encumbered and / or charged as security against any loan availed by the seller. Right title and interest in an encumbered / charged property cannot be transferred unless the charge is released.

4. Search for litigation:- It must be ensured that the desired property is not subject to any litigation.

5. Searches for Requisition, Acquisition:- Searches have to be made with Land acquisition office, Improvement trust, Land Reforms and Land Revenue office, etc to ascertain that the concerned property is not under any notice of requisition / acquisition. Transfer of any property under such notice is null and void and prone to subsequent litigation.

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6. Searches for statutory approvals:- It must be ensured that all the necessary approvals have been obtained from the relevant authorities for the project containing the property. Some of the most important approvals required are site plan sanctioned by the appropriate authority; Government agencies such as land development authority, planning authority; environmental clearance authority, Income tax clearance, etc.

7. Extra precaution in certain immovable properties:- Extra precaution is required to be taken in dealing with transactions relating to the properties of trust, minor, widow, lunatic and also when it involves parties from other religions as they are separately governed under personal laws.

8. Dealing with properties that involve “Power of Attorney”:- The property in question might have been developed / being developed by real estate developers, under Power of Attorney (POA), on plots of land belonging to different land owners (which is the case in most of the instances at present) OR the property might have been / being sold by the seller in a fiduciary capacity under POA in cases of the auction sale.

Consult: Top Property Lawyers in India

9. Preparation of the Sale Agreement:- Sale agreement is the primary legal document, and all the parties involved in the transaction deal with and on the basis of this document only. In case of breach of contract by any party, the aggrieved party proceeds for legal action based on this agreement.

10. Preparation of Draft Conveyance Deed:- At the appropriate time of registration as stipulated in the Sale Agreement and by mutual consent of the parties, a draft of the final conveyance deed is prepared for approval of all the parties involved in the transaction. It must be checked and approved by lawyers of both parties.

11. Preparation of Final Conveyance Deed, Execution and Registration:- After completion of the registration of the conveyance deed and receipt of the original deed from the registration office, the buyer becomes the owner of the purchased property.

A property lawyer has the legal knowledge regarding important documents and procedures needed to be carried out while buying an immovable property. He/she is your go-to person who can find out if the documents seem ingenuine or if the property seems legally faulty. For a property valued at lakhs and crores, spending a few thousand on verification with the help of a lawyer is a wise decision as it will ensure that you are investing  in such a huge amount in the right property. 

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