NRI should be aware that courts are slow in India and cases involving in buying property can take decades to resolve. Therefore, it is best to be careful to verify the documents before buying a property in India. Horror stories of real estate transactions are not infrequent in India. Most of the registration offices for property in India are not yet computerized. The records are kept in the manual records, and it is all the more necessary to obtain all the required documents and keep them carefully.
Tips for buying property, flat or vacant land in India.
- The builder’s reputation must be reviewed. What other projects has this builder built? Do not just look at glossy brochures and be satisfied.
- See the documentation of the lands on which the floors are to be built. There must be an appropriate certificate issued by an attorney with a position of at least three years. The documents usually name the parties from whom the land was acquired, etc. (It is always better for your lawyer to advise you on these matters).
- Verify that the plans provided by the builder have been approved by local government authorities.
- What happens if the project is delayed? It is not uncommon for builders to raise prices later if market prices rise. So ask the questions before giving the deposit.
- Obtaining written promises like verbal promises are not useless when there is a dispute.
- Take steps to let the builder know that you will be provided with a certificate of completion that has been issued by local authorities BEFORE possession.
- Get clarification in writing about how the builder will deliver after the build is completed. Such as cooperative society, etc. This may not seem important to many buyers when buying property, but it can prove to be a costly affair later.
Know More About: Issues With Real Estate Developer
Note: You have bought an apartment in India, and now it is not clear about who runs the building. The builder is not willing to give up control and has an administrative authority to manage the building. At the same time, some residents have formed a partnership and want to take control. This type of situation is widespread in India because builders do not want to dispense with the control. The reason behind this is usually greed. When they are pressurized by the resellers, they must have a certificate of no objection (NOC) from the company.
If no company does, then there is the builder who offers and usually charges a heavy fee to give an NOC. This can be a percentage of the selling price and can run in lakhs of rupees. I have said that if a builder does not relinquish control of a target in a building society then he still owns the land and with any relaxation in building code you will have to build more floors in the building and keep the proceeds from the sale. For example, if the law allows you to add another floor to the building, in India, the builders refuse to take full money by check. Usually, there is a black market value involved a cash payment. Stay away from these shops. NRIs should only use valid bank notes. Some well-known builders understand and accept them. Make checks even later in the repatriation to help secure their money if you sell the apartment at a later date.