Buying a home or real estate in India involves several legal laws procedures and regulations to ensure a smooth and secure transaction. Here’s a step-by-step guide outlining the real estate in India for property buyers: Before Buying a home or real estate in India and finalizing a property, conduct thorough due diligence. Verify the property’s ownership, title, and any encumbrances by reviewing relevant documents, such as the sale deed, title deed, previous chain of ownership, tax receipts, and other relevant records.
Real Estate Laws in India
- Hire a lawyer or a legal expert to verify the property documents and ensure. There are no legal issues or disputes associated with the property. This step is crucial to avoid any future complications.
- Prepare the sale deed, a legal document that transfers ownership from the seller to the buyer. The Buying a home or real estate in India sale deed must be registered with the sub-registrar’s office within the jurisdiction where the property is located. Both the buyer and the seller must be present during the registration process, along with witnesses.
- Pay the stamp duty and registration fees as prescribed by the state government. The stamp duty calculate based on the property’s value and also varies from state to state.
- Obtain an encumbrance certificate from the sub-registrar’s office to verify that the property is free from any pending mortgages, loans, or legal liabilities. This certificate confirms that the property is clear and can also transfer to the buyer.
- Obtain NOCs from relevant authorities, such as the local municipal corporation. It is water and sewage boards, electricity boards, environmental agencies, and also any other applicable bodies. These NOCs ensure that the property meets all requirements and compliances.
- Complete the payment as per the agreed terms and conditions. Upon receipt of the full payment, the seller hands over possession of the property to the buyer.
- Apply for mutation of the property in the local revenue office or municipal corporation. Mutation updates the property records with the new owner’s details. It is essential for property tax payment and also other legal purposes.
- Transfer the property tax account to the new owner’s name. Contact the local municipal corporation or tax department to update the property tax records and ensure future tax obligations are met.