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TIRUCHIRAPPALLI 14TH OCT(TECHNO NEWS): It is everyone’s dream to own a house or a plot in his lifetime. Here are some facts that each should know while buying a property. In order not to face any issues after the purchase of the property, it is always better to consult an advocate regarding the encumbrances involved in the property and a valuer regarding the probable value of the property. A person who wishes to buy or sell a property should be aware that there are Valuers approved by the government to value the property to the nearest value. In order not to face any issues after buying the property with the hard-earned money, there are many aspects to be borne in mind.
Er. B. Kanaga Sabapathy, Former National Vice President of the Institution of Valuers from Tiruchirappalli, enlists the various points to be borne in mind at the time of purchase of the property.
Responsibility is on the Buyer The buyer of the property is more responsible than the seller. It is his responsibility to check whether there are any encumbrances in the property, or whether the seller has mortgaged the property and is hiding the fact, or whether the so-called seller is the real owner of the property, by consulting an advocate.
Also, he should know about the present value of the property, whether he will face any issues if he wishes to sell the property by consulting a Valuer.
Correct identification of the property is very much essential. The buyer has to ensure that he constructs the building in his plot only and not in the wrong plot or adjacent plot. Then he may not face any unsolvable issues later.
While buying the plot ensure that it is in a government-approved layout. A visit to the site is very much essential so as to ensure that he buys the property from a genuine buyer and the correct government-approved property. At the time of registration a copy of the layout plan showing the boundaries of the property, its dimensions are mentioned clearly. If a building exists on the plot a plan of the building is also to be enclosed along with the registration document.
By paying an additional charge prescribed by the Registrar, a copy of the registered document may be obtained. The original may be preserved in a safety locker and the copy at home.
After a few days of registration of the document, it is necessary to obtain an encumbrance certificate from the registrar so as to ensure that the property has been transferred in the buyer’s name. Then the buyer becomes the legal owner of the property. It is absolutely necessary to ensure that there are no omissions or errors made at the time of preparing the documents. If found after the registration, it is very difficult to write a rectification document and get it registered, especially when the seller is in another city, or state or country. In order to reduce the stamp duty and registration charges payable, it is not advisable to show a lesser area of the building and its specifications.
While selling the property which is acquired for investment purposes it is advisable to approach a valuer to determine the fair market value and the probable capital gains.
Purchase of Flats
While it is necessary to indicate the four boundaries of the plot at the time of buying the same, in case of buying a flat in an apartment, it is necessary to indicate the six boundaries. While it is North, South, East, and West boundaries are indicated for a plot, in the case of a flat, it is necessary to show the upper floor and the lower floor as additional boundaries.
The Valuer is the competent person to fix the fair rent receivable for a flat, when there is any controversy in fixing the same. About 2.% of the value of the flat divided by 12 will be the normal rent of the flat. That is if the Value of the flat is Rs. 60 lakhs, multiplying it by (2.6/100) and dividing it by 12, will give Rs. 13,000/- as the expected monthly rent for the flat. On the same line if the monthly rent of the flat is multiplied by 460, the value of the flat may be obtained. That is if the monthly rent is Rs. 10,000/-, the approximate value of the flat is Rs. 46 lakhs. This percentage will vary for a residence and a commercial shop, depending on the marketing condition.
Partition of Property
After the demise of the owner of the property, a Valuer’s guidance and advice may be sought in order to determine the share of the legal heirs. In order to avoid disputes between brothers, if the elder brother does the partition, the younger brother selects his share first and vice-versa.
Taking proper advice from qualified and reputed consultants, like an advocate and an approved valuer, will solve many issues later after buying the property. Paying an appropriate fee to these experts will save a lot of unwanted expenditure in the future in case of any issue. Never hesitate to buy an elephant goad, when you decide to buy an elephant.
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