33.45 Legal Considerations that all Buyers need to be aware of!
Why do so many people avoid Real Estate purchases?
Because there are a lot of steps involved.
Even after you scout a good property, find a good deal.
You need to make sure you have considered all the legal requirements.
This is extremely important to protect your downside and thatās what we will take a look at today.
Buying process: Documentation
The proper documentation requirement for your property depends on the city of purchase.
These are some documents required in Goa,Ā
These are important irrespective of where you intend to buy your property:
1. Sale Deed
- The MOST IMPORTANT document.Ā Consider this as the bible for your property.
- It jots down all the details of your property - how it has moved from the builder to a particular owner, the exact area, amenities, etc.
- You must thoroughly check this document.
2. Nil Encumbrance Certificate
- To determine whether there is a pre-existing loan on the property or not.
- If the lender had mortgaged the property to a bank, then you will not get this certificate.
- The apartment needs to be taken over by the buyer.
3. No Objection Certificate - from the society
- To ensure all dues to the society have been paid off by the previous owner.
- In such a situation, the society will let you know if there are any additional charges that must be borne by either party.
4. Power of Attorney
- If the apartment is under the ownership of 2 people (For instance, Husband-Wife),
- You will need the signatures of both owners to make a legitimate transfer of ownership.
- If either of them doesnāt sign, the transfer will not be considered valid.
- Now if either of the owners is unable to attend the signing of the deed, they can opt for power of attorney. This isĀ a legal authorization that gives a designated person the power to act for someone else.
- Simply put, with power of attorney, the wife will be able to sign the deed on behalf of her husband, and vice versa.
There is higher chances of scams and unncessary headaches in future when you deal with properties through power of attorney.
- Donāt hesitate to hire a lawyer, even if it means you pay a little extra in charges.
- You will save a lot of money in the long run.
Other Documents
Just to give you a better idea of the short-term rental market in Goa, I mentioned that you have 2 ways to run a Business on your property:
- Either you manage it on your own
- Or you rent it out to a Rental Manager.
If you choose to do the second (which I did for some of my properties),
You need to create agreements here as well.
For example:
I decided to have a Leave and License Agreement that gives me a set fixed amount every month from a rental agreement.
As seen below:
The key takeaway is that:
- The documentation process is highly contextual to your place of purchase.
- Please be aware of the particular documents you would require as per your location.
- Spend time learning about this.
Source
- Akshat Shrivastava 26/30 days Newsletter.
