Delhi, India (PressExposure) September 11, 2009 -- Documents checks for freehold properties are simpler
Many of you must be finalising property [http://www.zameen-zaidad.com/] deals as the auspicious festive season approaches and don't of course need to be reminded that the papers for residential properties in freehold areas have to be thoroughly scrutinised before you take the final call on the purchase.
The good news is that the paperwork check for residential properties in freehold areas is relatively simpler than that of leasehold areas.
Leasehold properties come under the purview of land owning agencies [http://www.zameen-zaidad.com/], be it the Land and Development Office (L&DO) or the Delhi Development Authority (DDA) entered into lease with the buyer, generally a perpetual lease for 99 years. The lease is considered to be an agreement between the President of India as the lessor and the person allotted the land, called the lessee.
Another category of the leasehold property includes those that were earlier leasehold but were converted to freehold by the property owner after paying the prescribed charges to the authorities.
The conversion from leasehold to freehold was made possible when the government in the 1990s allowed for the conversion on payment of specified fees to the land owing agency [http://www.zameen-zaidad.com/]. But even as the rules permitted conversion of land type not everyone grabbed the opportunity. This was mainly for two reasons. One was that not everyone wanted to pay the conversion charge. Secondly, under the rules the conversion is of the land and therefore it would be the entire property on that land that would then become freehold. There were problems then in homes or buildings with different owners of different floors. Even if one or two of the owners are interested, the others were not willing to pool in for paying their share of the conversion charge.
Buyers of residential property [http://www.zameen-zaidad.com/] should now first check if it is freehold or leasehold. Then go through the papers. For freehold check the title deed. In case it is a second sale then check the sale deed. If the property has been bought by a private coloniser then look for the sale deed between that company and the owner. Also ensure that you get the copy of the building plans and check if the same has been cleared by the concerned civic agency, the latest property tax bill duly paid as also the water and electricity bills.
For leasehold property check the leasehold document be it that of the DDA or the L&DO, the building plans with due clearance, water and electricity bills paid up to date. In case the property was earlier leasehold and later made freehold an important document to check is the Conveyance Deed issued by the land-owning agency. The Conveyance Deed is given to the owner by the land-owning agency as an ownership document when he converts the leasehold property to freehold.
Do make it a point to check whether the property, even if it has sanctioned building plans, has been made as per plan. If any extra construction work has been done, and not according to what is authorised then this could mean either a demolition of unauthorized construction or at least regularisation by the authorities on payment of specified charges and necessary paperwork.
It is not easy to run checks on property papers [http://www.zameen-zaidad.com/]. The best and easiest way is to entrust the document check exercise to a lawyer specialising in such checks as he would also have the property records verified in the land-owing agency offices. No doubt these lawyers charge a fee, but it is well worth it. The other way is to verify the documents in the land owing agency oneself, but getting information in most offices is not easy and officials don't take much interest.
Courtesy:- HT dt:- 05-09-2009