How to Legally Verify Property Documents Before Buying in Kolkata?

Buying a property is a very large scale decision that which we all live to see and with it comes a set of legal issues. In a city like Kolkata which has in it a mixture of old buildings, new projects, and inherited properties, due diligence becomes even more important.

In many cases a dream home purchase can turn into a legal nightmare if the paperwork is not done properly. What do you do to make sure the property you have your eye on is a sound legal investment? Here is your guide.

Title Deed Verification

The title document is the most important in terms of property ownership. It serves as proof that the seller has the legal right to put the property up for sale. Go over the title document with a lawyer to determine that the property is in fact in the seller’s name and also that it is free from legal issues.

At Property101, we have seen that in Kolkata many old properties are in ancestral names or joint names which means that verification of sole ownership is a must. A clean title deed should also present a history of the property’s ownership over the years.

Check the Encumbrance Certificate

An encumbrance certificate reports if a property has any legal or financial issues which may include unpaid loans or disputes. You can obtain the EC from the local Sub-Registrar’s office and it usually includes transactions of the past 13 to 30 years.

At Property101, we always put forth that you get an EC in to play before you pay out or sign away on anything which goes for when you’re a buyer of a resale flat or a stand-alone house in the suburban areas of Kolkata.

Mutation and Tax Receipts

Mutation is the process of updating the records in municipal bodies after a property is sold. Go to the Kolkata Municipal Corporation or local municipal office to get mutation papers which will confirm that the property has been properly registered.

Also check to see that current property tax reports are accurate. Unpaid bills may be put on you after the purchase which is a large issue also of which people do not pay enough attention to in the case of old or inherited homes. Also see that the tax assessments are recent. Unpaid taxes may come back to you which is a great issue which does not get enough of a look at in the case of properties that may have been in the family for a while or that you have inherited.

Sale Agreement and Possession Certificate

Once you are ready to proceed forward you will be asked to sign a sale agreement. This should include the terms total price, advance payment, date of possession, and penalties for delay. It must be signed by both parties and we recommend that it also be registered.

If when you purchase from a builder you receive a possession certificate at handover. This document notes the date that the property is handed over to you which in turn impacts loan disbursement and tax reports.

Approved Building Plan

In new apartments and stand-alone homes it is important that you check out that the construction is as per the government approved plans. Get a copy of the sanctioned building plan from the builder or seller which should have been issued by KMC or KMDA (Kolkata Metropolitan Development Authority).

Unauthorized growth is an issue in peripherals like Barasat and Rajarhat. Also we see a great deal of variance between what is built and what is approved which in turn leads to demolition notices and legal action.

RERA Registration

All real estate projects in Kolkata that have over 8 units or 500 sq. m. are to be registered under West Bengal RERA. Also ask for the RERA registration number and verify it on the WBHIRA portal.

RERA is at the forefront of promoting transparency which also means that a RERA registered property is protected by law in case of disputes or delay in construction.

Final Thoughts

Verifying property documents is a must it is the base of a stress free property purchase. In the many faces of real estate in Kolkata legal verification protects you from fraud, unclear title and regulatory issues.

At Property101, our belief is that well informed buyers are smart investors. Hence when you are buying your first home in Behala or putting an investment in a high rise in New Town, take the time to go over every document from a legal point of view. A few extra actions today may save you from problems in the long run.