Documents to be inspected during Sale-Purchase of Flats in New Construction - Adv. Shreeprasad Parab

Summary

This video provides essential guidance for prospective flat buyers in India, focusing on both new construction and resale properties. It outlines the key legal aspects, including the Transfer of Property Act, RERA regulations, and the importance of verifying critical documents like the Commencement Certificate (CC) and Title Search. Expert advice from Advocate Prasad Parab emphasizes the need for caution in purchasing flats, urging buyers to thoroughly check project registration, land rights, and developer transparency to avoid future legal or financial issues. This practical approach ensures a smooth and secure property buying experience.

Takeaways

• 😀 **Legal Framework**: The sale of property is governed by the **Transfer of Property Act, 1882**, particularly Section 54, which defines 'sale' as a transfer of ownership for a price paid or promised.
• 😀 **RERA Compliance**: Under Section 3 of the **RERA Act**, developers must register their projects with RERA before offering or selling properties, and the RERA registration number must be displayed in all promotional materials.
• 😀 **Importance of RERA Registration**: A RERA-registered project provides assurance that the property complies with regulatory standards, and it also guarantees that the developer has a valid registration number.
• 😀 **Commencement Certificate (CC)**: Ensure the project has received a **Commencement Certificate (CC)** from the local authority, confirming that the construction is authorized and complies with legal requirements.
• 😀 **Title Search**: Conducting a **title search** helps verify the ownership history of the property and checks for any encumbrances or mortgages on the property, reducing legal risks during purchase.
• 😀 **Land Ownership Details**: Verify the development rights and land ownership details, especially through the RERA website, to ensure the developer legally owns the land and has the right to develop it.
• 😀 **Sanctioned Plans Verification**: Cross-check the **sanctioned plans** approved by the local corporation and compare them with the construction plans to ensure there are no discrepancies.
• 😀 **Flats Covered Under CC**: Confirm that the flat you intend to purchase is covered under the **Commencement Certificate (CC)**. If not, the developer cannot legally sell it.
• 😀 **Developer Interaction**: Engage with the developer directly if there are missing documents or if further clarification is needed regarding any aspect of the property or construction process.
• 😀 **Risk of Unverified Sales**: Be cautious of purchasing from developers who fail to provide sufficient documentation or verification of the property, as it may lead to legal issues or incomplete transactions.

Q & A

What is the legal definition of 'sale' under the Transfer of Property Act, 1882?

Under Section 54 of the Transfer of Property Act, 1882, 'sale' refers to the transfer of ownership of property in exchange for a price that is paid, partly paid, or promised.

What are the key duties of the seller under Section 55 of the Transfer of Property Act?

Section 55 of the Transfer of Property Act outlines the seller's duties, including informing the buyer about any material defects in the property and providing all relevant documents related to the property.

What role does RERA play in the purchase of new construction properties?

RERA (Real Estate Regulatory Authority) requires developers to register their projects before offering flats for sale. The developer's RERA registration number must be included in promotional materials, and buyers should verify the project details through RERA's website to ensure transparency and legality.

Why is it important to verify the developer’s land development rights?

Verifying the developer's land development rights ensures that the developer legally owns or has the right to develop the land on which the project is being built. This can be confirmed by checking the RERA registration and examining the title verification report.

What is the significance of the Commencement Certificate (CC) in property purchase?

The Commencement Certificate (CC) indicates that the local authorities have approved the construction to begin. It's essential to verify that the CC covers the floor you intend to purchase; without it, the developer cannot legally sell the flat.

How can you verify the floor plans of a new construction property?

To verify the floor plans, you should compare the plans uploaded by the developer with the approved sanctioned plans provided by the local authorities. This ensures that the construction is compliant with legal guidelines.

What should a buyer check regarding the project's legal status on RERA's website?

Buyers should check for the RERA registration number, which confirms the project's legitimacy. Additionally, the website provides details on any legal disputes (litigations) involving the developer and project, and whether the project has met regulatory requirements like the CC.

How can a title search benefit a buyer in the property purchase process?

A title search helps identify any legal encumbrances, such as previous agreements, mortgages, or liens, associated with the property. This ensures the buyer is not unknowingly purchasing a property with unresolved legal issues.

What should a buyer do if the required documents are not available online?

If the required documents are not available online, the buyer can physically visit the developer's office to inspect the documents. In some cases, a personal connection, like an architect, may also help verify plans and other details.

What precautions should a buyer take when purchasing a flat in a new construction project?

Buyers should verify the developer’s RERA registration, ensure the Commencement Certificate (CC) is valid for their specific floor, check the project's legal status for any ongoing disputes, and confirm the title and development rights. A thorough title search is also highly recommended.