Here is a detailed insight to all this to help narrow your search & strike the right deal.



Location of Project:Several factors have to be kept in mind while checking a suitable location for a project. Distance from railway station, bus stop, highway etc. and accessibility to any of these factors that are prominent to you like schools, colleges, hospitals, shops, restaurants, temples, your place of work etc. should always be kept in mind. Also good localites will definately fetch you a higher price on resale. Basic infrastructure such as availability of water supply, regular power supply, good sanitation, proper drainage system & well-maintained roads are all essentials while zeroing in to a location.

Finalising the Builder:It's necessary to verify a builders track record so that there is assurity for quality and timely possession .

Following things have be verified before making up your mind on zeroing in to the final property selection.

1]The Builders reputation- There've been cases wherein builders promise many amenities & maintenance support during booking, but at the end do not keep their promise. The same can be verified by discussing with occupants of his earlier projects. Also taking a view from other builders, suppliers and contractors about his buisness practices would be an added advantage.

2]Check out his Achievements Tenure of builder in this buisness , projects to his credit should all be verified. Though new builders offer flats at lower rates, it would be better investing with someone who ensures quality & timely possession.

3]Housing Finance Companies Approval Loan sanctioning is much easier if that particular builders project is approved by the reputed housing finance companies.

4]Construction Quality & timely delivery A house cannot be judged basic on it's external experience. Other aspects like brands, type of cement, paints tiles, bathroom fittings, waterproofing etc should all be discussed with the builders. All doubts have to be clarified, so don't mind even if you have to ask end number of questions about the same. It's always better to ensure that you are investing in safe hands. Also make sure that there is maximum usage of space with minimum wastage area & that too inline with the interior layout. Also it's very important to ascertain the waiting period pending possession.

5]Title clearance aspects -

a]Achieving a clear title will ensure that that property is not constructed on undisputed land & that it can be resold in future.

b] By checking the Intimation of Disapproval(IOD) and commencement certificate(C.C) for the project under construction, we can ensure that builders has his plans approved by the corporation & is permitted to start work.

6]Additional Charges & other facilites Additional charges such like legal fees, society deposits, other funds etc should all be verified with the builders if the same is in the agreement or not. Similarly you can also check out if builder provies such facilities like suggestions for interior decoration, furniture costs, maintnenance services of plumber, electrician etc., LPG transfer formality, telephone connection etc. A simple review of all the above listed aspects will help you to ascertain the builder that is apt for your dream house. Even though some amount of time spend on this, it will ensure that your investment is placed in the right hands. Documents Clarification : Property buying is a serious business and one needs to examine all relevant documents. Few of the most important aspects are mentioned below. After a long hunt you finally find your dream home. Soon after you move in, you receive a notice from the Municipal Authority that the building is an illegal structure. With a few precautions a scenario like this could be avoided. As the saying goes 'Better safe than sorry.' Purchase of Immovable property requires any person who ventures into such an acquisition to take utmost caution in such a purchase whereby his / her hard earned monies are suitably protected and the roof over his / her head and / or his means of livelihood involves no complication of legal nature. The Government has enacted various legislations to safeguard the interest of the flat / shop / office purchaser, chief amongst them being the Maharashtra Ownership Flats Act, 1963 and the rules framed thereunder and which acts and rules have been suitably amended from time to time. In purchase of flats there are two possibilities. Firstly a purchase from the developer in a new building and second flats purchased in resale.

In case of a flat purchased directly from the developer the following documents should be scrutinised :

1) The Revenue Records or 7/12 and / or Property Card of the Plot on which the building is constructed. Such records should bear the name of the Developer and / or the land owner with whom the Developer has entered into development contract.

2) Title Deeds of the property and / or development agreements between the landowner and the promoter. These documents should be available with the Promoter and it should be ascertained that the Promoter has sufficient rights and power to develop the property and that the document is duly stamped and registered.

3) Permission for Non-Agricultural use from the Collectorate is a statutory pre-requisite prior to commencement of any development activity.

4) Building plans duly sanctioned by the Municipal / Local authorities and a Commencement Certificate from such authority and in cases where the building is complete the Completion Certificate are also mandatory. All Agreements in respect of flats / units purchased from Promoter or in case of resale of flat are to be registered mandatorily. This provisions is stipulated in the Maharashtra Ownership Flat Act 1963 and overrides any act or law to the contrary. A registration fee of 1% or 30,000/- whichever is lower is payable there against. The Maharashtra Ownership Flat Act 1963 has prescribed a standard format for the Agreement required to be entered into between the Promoter and flat purchaser.

In the event of flats purchased in re-sale the following precautions in addition to the aforesaid safeguards need to be observed and verified :

1) The Seller has stamped and duly registered the Agreement of Purchase.

2) The Seller has made full payment to the developer including all due outgoings.

3) The Seller's name is recorded with the Municipal authority records as the owner.

4) The Seller's name is recorded as Member with the society.

5) All taxes, maintenance charges and electricity bills are duly paid upto date.

6) The flat being purchased is not mortgaged to any bank.

7) In case of flat in Co-operative Housing Society, No Objection Certificate of the Housing Society.

8) In case of flat in a Registered Condominium, No Objection Certificate of the Management. The aforesaid are only preliminary precautions enumerated and are only guidelines for examination of the prima-facie title to the property. However every case differs since various other complicated legal aspects especially for inherited property need to be closely examined and verified. Similarly in case of a Non-Resident Indian selling his property the onus of deduction of Capital Gain Tax at source lies upon the purchasers unless an exemption certificate is obtained by the Non-Resident Indian from the Income Tax Authorities and failure to abide by the same puts liability of the tax payable on the purchaser. It is also advisable to obtain specific legal advise before venturing and acquiring properties since the stakes today are enormous involving life savings of an individual and it is therefore better to tread slowly but surely.

Stamp Duty : It is a tax that must be paid in full and on time. A delay attracts a penalty at the rate of 2% per month on the deficit amount. Subject to maximum penalty of 200% of the deficit amount of the stamp duty. (This amendment has come into force from May 1, 2001.) Documents lodged with the sub-registrar / superintendent of stamps prior to any amnesty scheme attract a lump sum reduced penalty. Documents not properly stamped are also not admitted in court as evidence. It is payable either before execution of the document or on the day of execution of document or on the next working day of executing such a document. Execution of a document means putting signatures on the instrument by the persons who are party to the document. However it is advisable to pay stamp duty before executing the document. Registration: Registration means the document which consists the seal and signature of a proper authority who has given such right by laws. For this certain procedure is required to be undergone and in the precence of the Sub-Registrar of Assurance. A document is first required to be verified to ascertain its truth, legality and if the Sub-Registrar finds it satisfactory then only it can be registered.. The parties should be personally identified by two independent witnesses. All parties and witnesses present, requires to sign in the presence of Sub-registrar on an additional page attached to the document. Parties should be photographed and their left hand thumb impression be taken. And be affixed on additional pages. The Sub-Registrar puts his offical seal and a unique numbering block on each page. On the last page he signs the document as being registered.He then records the content of the document, including additional pages, either by photocopying the content or scanning it. The photocopy or scanned image is permanently retained in his records so a copy of the document can be obtained whenever required. The copy becomes a public document, which anybody can inspect by paying inspection fees and one can procure a certified true copy. After this the Sub-registrar handover the original document to the party.

Maintenance Charges: Commotion over maintenance charges are seen in many of Mumbai's co-operative housing societies. Here are some legal aspects relating to the maintenance charges. The most recurring problems is recovery of maintenance charges from society members. These maintenance charges are meant to cover the day-to-day expenses for maintaining the society, common amenities, equipment cleanliness, water charges, security charges etc. Generally, the disputes take place area wise. According to the Honorable mumbai high court has already give a decision in Writ Petition No- 1948 of 1997 between the Venus Cooperative housing society v/s Dr. J.Y. Detwani and others, therefore holding that the society cannot charge maintenance charges on the basis of area of the tenements of the members. Generally a co-operative housing society provides services to each member according to the area of their tenements and therefore the maintenance charges are also to be equal to all members. In the byelaws of many co-operative housing societies there are means for acquiring of maintenance charges at a rate per sq.ft. and the maintenance charges for each member would be different. The recovery of maintenance charges as one tenement is only possible if the it is recorded as one tenement in the records of the society and the Local Authority such as the Municipal Corporations. Usually it happens that the member does not inhabit in the tenement granted to him/her, and has given it on rental basis, or on leave or license etc. In such case the society demands the maintenance at the double rate, and generally disputes are raised for such charges. The government has put on that if the member has parted his possession to his mother, father or to any other relatives accepted by the society, then the non-occupancy charges should not be levied on such members. Thus the maintenance charges should be collected in the above manner from the society members.