What is the return on real estate?

When you're considering purchasing property in India, ensuring the genuineness of the asset is crucial. Real estate transactions often involve significant investments, so it's imperative to verify their authenticity before proceeding. While the process might seem daunting, there are straightforward methods you can employ to ascertain the legitimacy of the property and protect your interests. Here, we explore some simple yet effective ways to verify the authenticity of a property in India, ensuring a safe and secure investment.

First and foremost, one of the simplest ways to check the genuineness of a property is to conduct thorough due diligence on the property's title deed. The title deed is a legal document that confirms the ownership of the property. Ensure that the title deed is clear, marketable, and without any legal encumbrance. By examining the title, you can confirm that the seller is the rightful owner and that there are no disputes or litigation attached. Request a copy of the sale deed and examine its chain of ownership to ensure the legal transfer of property over the years.

For a more comprehensive verification, it might be beneficial to scrutinize the encumbrance certificate. This document serves as evidence that the property in question is free from any monetary or legal liability, such as an unpaid loan or mortgage. In India, you can obtain the encumbrance certificate from the sub-registrar's office where the property is registered. It typically reflects the financial transactions related to the property for a specified period, providing you with an additional layer of security when assessing potential property investments.

When considering a property, verify whether it is built on legally sanctioned land. You may check land conversion certificates, particularly for properties situated on agricultural land. The local municipal authority issues these certificates, confirming that agricultural land has been legally converted into non-agricultural land for construction. Understanding the land type will protect you from investing in illegal or unauthorized constructions, which can lead to potential issues with municipal authorities and property disputes in the future.

Examining the approval documents issued by local authorities is another practical step. Check for the sanctioned building plan, which details the layout and dimensions of the property. Unauthorized constructions often deviate from the approved plans, leading to encroachments on public or neighbor's land, which might invite legal challenges later. Make sure the property adheres to all stipulated building regulations and zoning laws to avoid complications in the future.

One cannot overlook the importance of verifying the seller’s background. While this step might seem cumbersome, knowing who you are dealing with can prevent potential frauds and misrepresentations. It is advisable to perform a background check on the seller and the builder by assessing their reputation in the market, inspecting their past projects, and reviewing any existing customer feedback. Checking if the property is registered under RERA (Real Estate Regulatory Authority) can also provide an added assurance, as RERA registration implies that the builder has complied with certain prescribed standards and practices.

One potential drawback when performing these checks is the possibility of incurring additional costs and time. For instance, obtaining copies of various documents or certificates may require additional visits to government offices, which can be time-consuming. However, many of these records are now accessible online in some Indian states and cities, which can streamline the process considerably. Though they may seem tedious, these measures serve to protect you from fraudulent practices, offering peace of mind.

In summary, thoroughly verifying the property’s documents, background of the seller, and legality of the construction is of utmost importance for ensuring the genuineness of property transactions in India. It is a preventive measure that safeguards buyers from future disputes and legal complications, offering both security and a solid foundation for investment. By taking these steps and being diligent, you can enhance the likelihood of a successful and legitimate property acquisition, thus ensuring your protection in the dynamic landscape of Indian real estate.

Exploring the real estate market offers exciting opportunities but can also be complex. Whether you're buying a home, making an investment, or keeping up with market trends, having the right insights is key. Stay informed, plan strategically, and make confident decisions to secure the perfect property. Your real estate journey starts here!