A house is one of the basic needs of man and the most valuable lifetime saving which gives him a sense of protection, privacy and comfort. It is the place where our mind relaxes amidst many busy activities. While thinking about the construction of a house many questions and doubts too raise in our minds; ‘where to start?’ ’ how to start?’ ‘how to do the documentation?’ ‘Which all sanctions are to be taken?’’ which are the rules to be followed?’ and so on…
Many of us don’t bother about these facts until we have a need for it. But then it becomes a tough job to gather information and follow. The major huddle in this aspect is that many of the tasks have time limits and the applications are to be given at the specific period. Unless we are aware of this fact it is risky to act.
Legal menu of this portal showcase a set of information about the legal procedures, dealings, contracts and rules which are inevitable for the one who plans to make the dream of his house come true.
- Buying a plot/ house-
Title deed is a set of documents which gives the right to a person or more to own a property. Most commonly they are used to attain the ownership of a property or a vehicle. A title deed is written by a Government licensed document writer. Even lawyers can prepare a title deed but this will be typed or computer printed, hand written documents can only be prepared by a person having scribe license. In most part of the world a title deed confers certain rights and privileges to sell or transfer the property by owner. A title deed is an error free written description about a property, in such a manner that it does not create confusion with any other property. The deed is written in the name of the property owner, multiple names can also be listed. The official seal is used in the document to show that it is recorded. The document is signed both by the owner and the witness (who may be a regional official or clerk). It is always important to keep the records safe. Taking copies of the deeds is useful at times when the original gets damaged or is lost.
Some people do not wish to transfer the deed to other person but adds another person’s name to it. Be cautious while adding a new name as it permits right over the property to the other person too. To add more names to the existing deed it is necessary to go to an agency such as a title company, for real estate, produce a written document requesting to grant the permission to add names.
Before buying a property go through the ‘original title deed’ and conform whether the property is in the name of the owner himself and there are no loans and liabilities upon it. It is better to get it checked by a lawyer. Ask the owner for the former title deeds (if it exists) for reference.
Tax receipts and bills
Tax imposed by the Government or the municipality are the dues which are to be paid off correctly. Contacting the relevant departments and ensure that the payment of taxes of the land/ building were done. Collect the former tax receipts from the owner for verification. If the owner does not have it with him, you can collect the required receipts from the municipal offices with the help of the survey number of the property. Also inspect whether any notices or requisites put by the Government are issued upon the plot.
While inspecting the tax receipt go through both the columns in it. One shows the owner’s name and the other shows the name of the person who paid the tax. Ensure that the electricity and water bills are up-to-date and if there any is balance of payment to be made, ensure that it is made by the seller.
Measurement of the property is to be done perfectly before registering a plot to your name. Accurate measurement of the plot and the borders can be done with the assistance of a recognized surveyor. For further clarifications compare the Survey sketch from the Survey department. By doing so it is easy to terminate problems and disputes that can come up in future.
The encumbrance certificate is used in property transactions as an evidence of free title/ownership. Encumbrance certificate is a detailed evidence for all the transactions of a particular property over a time period. While buying an apartment, land or house, it is important to confirm that the land or property does not have any legal dues. Therefore before buying a property collect the encumbrance certificate from the sub registrar office where the deed has been registered. This gives us the right information whether the land have any legal dues and complaints. You can demand for encumbrance certificate for 13 years, for further clarifications check the certificates of past 30 years. If you still have doubts seek for the possession certificate, of the ownership of a particular land, from the village office.
A release certificate from bank is a document which can give us information that a property is relieved of all loans. Some people might have taken loans upon their property, before buying a plot, make sure that all of them are paid off. Do not trust the repayment receipts but ask for the release certificate. It is possible to buy a land without the releasing certificate but when you are in a need to take loans upon this property a releasing certificate is to be produced. In some cases the property will be owned by more than one person then release certificate is to be obtained from the rest of the members too.
A sales deed is also known as a conveyance deed. A sale agreement is a document by which the ownership is transferred from a seller to the buyer. This document enables the purchaser to know whether the property that he owns is in the land of a society, builder or a development authority.
Registration is the process of recording a copy of document which is done under the supervision of a registrar in a sub registrar office, soon after preparing the title deed with all relevant information. It acts as a poof of the transaction taken place between two or more men. A draft should be prepared before the actual deed. Registration is done only after a complete the document is made. Maintain maximum accuracy as the secondary registration by rectifying the errors requires more amount of money based on the number of errors committed. Registration is to be done within the time period as specified in the agreement. Original title deed, previous deeds, Property/ House Tax receipts, Torence Plan (optional) and two witnesses are needed for registration to progress effortlessly. The expense involved during registration includes Stamp Duty, Registration fees, Document writers/ Lawyer’s fees etc.
Stamp duty should be paid prior to registration. The stamp duty will depend on the cost of the property and varies from Municipality to Corporation to Panchayat. In Panchayat the stamp duty will be 4% of the cost of the land whereas in Municipality it is 5% and in Corporation 6%. 2% will be charged as the registration fees. After Registration the document is handed over to us within 2-3 weeks.
Plan approval to possession certificate
Submit an application as prescribed by the authorities in Panchayat/Municipality/Corporation office to get the plan approval. Three copies of the plan, copy of the title deed, possession certificate, land tax receipt etc should be attached with the application form. The original title deed is to. Plans attested only by the licensed Engineer or supervisor receive sanction from the Panchayat office. The permission to start construction is issued within 30 days after close verification of the details. The construction is to be done within the period of 3 years; this time limit can be extended by remitting 10% sum of the fees paid before. Application for getting the number for the building has to be moved after the completion of construction. Completion certificate and the plan should be produced with the application form. After this, the concerned officials will visit the property to ascertain the tax and provide the number. Possession certificate will be issued after applying for it along with the fees required.
The process of changing the former owner’s name to that of the buyer from the village office records is termed as mutation. The property sale is only completed only when the mutation is over. A copy of the newly registered deed is required. It is to be noted that you get the registered copy with document number, office seal and signature from the village officer. This should be submitted in the village office to complete the mutation process.
Electricity connections are of two types- Commercial and Residential connection. To get the connections apply in the office concerned via application form and produce the relevant documents such as- Identity card, possession certificate, approved plan/permit, wiring plan etc. Rs. 125 is the fees for those who are below poverty line and for those who are above the poverty line Rs. 300/ Kw is to be paid for the connected load. The connection is issued on a priority basis. OYC (Own Your Connection) is to be paid to get the speedy connection. Rs.1500 is the amount to be paid if the connected load is 5 to 10 kW. For connected load of 10-25 kW it costs Rs.9900. An additional amount is to be paid to have an electric post. If the request for electric connection is not given by the owner, authorization letter of the owner saying that he wish to electrify the house has to be produced.
Water connection can either be taken while the construction is at progress or after it is completed. If a connection is needed during the construction, you can apply for a casual connection which has the validity of a year. Later this casual connection itself can be converted to permanent one by giving an application along with the building plan, ration card and house plan to the Water Authority Sub divisional office. After this the assistant Engineer will visit the site and grant the permit for water connection. The owner of the house should sign an agreement in a stamp paper worth Rs.50. With this he has to submit the water meter also. The office accepts the deposits and the required fees. Later on the work order will be issued .The applicant can engage a plumber at this stage and get the work done. The works are to be completed within 6 months of time. A completion certificate from the plumber is to be produced before the officials. Once the officers are convinced with the completed work they grant the permission for water supply. A separate application is required to convert the casual connection to domestic connection. Permanent water connection is given only when the house gets its number from Panchayat office. The deposit money will be reimbursed once the casual connection is converted to domestic connection.
Allottee of a government development authority
- Allocation letter
- Allotment letter
- Possession letter
- Receipts of payments made to authority
Seller is a power of attorney (POA) holder of a government development authority
(Usually banks and financial institutions give loans only up to the first power of attorney holder due to attendant risks involved otherwise. However, in such a case, these documents need to be referred to)
- Allocation letter by the authority
- Allotment letter by the authority
- Possession letter
- Receipts of payments made to authority
- Permission to mortgage
- Authorization letter signed by the seller
- Receipts of payments made by purchaser to seller
- Verification of signature of seller from his bank
- General power of attorney
- Special power of attorney
- Agreement to sell the property