The real estate sector plays the second most important role in the economic development of India after the agricultural sector. The demand for property touched the sky with the arrival of globalization and urbanization. This got reflected in the development of other industries too like retail, hospitality, housing, etc.
Along with the developments, fraud cases too increased in every sector. In the real estate sector, property frauds occur due to the ignorance of buyers or developers not sharing the proper information. Some of the cheating ways are like providing fake documents, taking advantage of loans on the property, providing general power of attorney, fake layout, etc.
To prevent these types of real estate fraud, the ministry of housing and urban affairs Government of India introduced the RERA Act in 2016 and GST regulations. The Real Estate Regulation Act (RERA Act 2016) was launched to secure the interests of buyers and developers.
The speed of real estate growth also resulted in the speed of increased property fraud. Technology provides the details of any subject at our fingertips, but still many got cheated by real estate frauds. India is one among the top in reporting property frauds. Property buyers have to be sharp-eyed while buying a property in India.
While purchasing a property in India one of the most important documents to be checked is the sale deed. It is a legal document, proof of the transfer of ownership, title, and other rights of property from the seller to you. Before signing the document you have to cross-check each term on the deed, property title, and every condition specified on the deed.
The property owner must acquire an approval plan from the jurisdictional commissioner or any other officer appointed by him/her. To get the approval you have to submit the documents mentioned below to the officer:
The mother deed is the parent’s legal document that helps you to trace the antecedent ownership of the property. This is a very important document for you if you wish to sell your property in the future. It is strong proof of your current ownership. You also have to ensure that the mother deed has recorded the list of previous owners in chronological order.
Power of attorney is an important document to avoid property fraud. The power of attorney grants you the right to rent, sell or mortgage the property on/her behalf. You will get the legal rights only if the power of attorney is registered.
It is another important document to avoid property fraud. It is issued by the revenue authorities. A no-objection certificate or NOC is required from the tehsildar’s office for the conversion. It grants you the right to change the farmland or agricultural land into land for housing or residential purposes. Lack of this document will show you as illegal and your property will be considered farmland.
It is necessary for obtaining a property in India post-RERA implementation. It is issued by the Municipal authority. This certificate will ensure you that the house you are buying is completed in compliance with the rules and built as per the approved plan.
It indicated the change in ownership of a property that was held against a home loan. It gives you the details regarding proof of mortgages, title transfers, or any legal transaction against your property.
It is an important certificate to avoid property fraud. An occupancy certificate certifies your project only after an inspection conducted by the authority to ensure the building meets all the required norms. This certificate certificates the building is in ready-to-move condition and one can live in it.
It is very important to check all the tax receipts before buying a property. You have to check all the receipts to ensure that the taxes have been paid correctly until the sale date. To establish the credential of the owner you can ask for the latest original receipts.
If your seller lacks the tax receipts, you can contact the municipal authorities. With the property survey number, you can easily confirm the ownership. Other bills like water bills, and electricity bills should be checked.
Buying a home is a dream come true moment for you. So be vigilant in dealing with real estate properties. Above are some of the important documents which help you to ensure property fraud. These documents will help you to know whether the property you wish to buy is legal or not.
It will also help you to know that you are making a lawful transaction and not involved in property fraud. It is advisable to hire a lawyer to guide you through the purchasing.