Legal Checklist for Property Purchase in Tamilnadu

The biggest factor in valuing a property is the title to the property. Property which have clear title can be easily sold or mortgaged to raise funds. On the other hand, a property with faulty or invalid title could be worthless and cannot be mortgaged. Hence, its important for the buyer to undertake a thorough due-diligence while purchasing a property and ensuring it has clear title. In this article, we look at a legal checklist for property purchase in Tamilnadu.

Purchase of Flat or Apartment

Details of approved plan must be displayed at the site by the promoter.
Ensure if the flat or apartment has been constructed as per the approved plan.
Check whether completion certificate has been issued by the Chennai Metropolitan Development Authority (CMDA) or other authority, after completion of the building.
Check if the promoter or power of attorney holder has a right to transfer the undivided shares of the land.
Ensure that the promoter or land owner or power of attorney holder has no rights over the open spaces and the terrace, after the entire undivided shares of the land has been transferred to the persons purchasing the flats or apartments.
Ensure that the undivided shares of the land has been transferred by the promoter or land owner.

Purchase of Land or Building

Check the property title deed to ensure that the seller has a right over the property.
Verify pattah of the property.
Verify encumbrance certificate of the property. (Procedure for obtaining encumbrance certificate in Tamilnadu).
Verify the land use zone as per the master plan for the land.
Verify that planning permission from CMDA and building plan approval from the concerned authorities.
Ensure that the building follows the approved plan.
In case of building, request and verify the building completion certificate.
In case of layout, ensure that the CMDA or Directorate of Town and Country Planning (DTCP) approves it.
Ensure that the roads and park areas in a layout has been handed over to the local body by way of a gift deed.

The title to a property can be verified properly only by an experienced legal practitioner. In case one requires, property title verification in Tamilnadu, contact IndiaFilings.com or a Property Lawyer.

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Frequently Asked Questions

Common questions about Property Purchase Checklist.

Verifying the property title is crucial because a property with a clear title can be easily sold or mortgaged in the future, whereas a property with a faulty or invalid title could be worthless and cannot be mortgaged. Ensuring a clear title is an essential aspect of the due diligence process when purchasing a property.

To verify that an apartment or flat has been constructed as per the approved plan, you should check if the details of the approved plan are displayed at the site by the promoter. Additionally, you can physically inspect the property and compare it with the approved plan.

Obtaining a completion certificate from the relevant authority, such as the Chennai Metropolitan Development Authority (CMDA), after the completion of a building is essential. This certificate confirms that the building has been constructed in accordance with the approved plan and meets all necessary regulations and standards.

To ensure that the promoter or land owner has transferred the undivided shares of the land, you should verify that the necessary documents have been executed and that the transfer of the undivided shares is properly recorded and reflected in the property records.

When purchasing land or a building, you should check the property title deed to ensure that the seller has the right over the property, verify the pattah (legal document confirming ownership), obtain an encumbrance certificate (to check for any legal liabilities or claims on the property), and verify the land use zone as per the master plan.

When purchasing a building, you should verify that the necessary planning permission from the CMDA and building plan approval from the concerned authorities have been obtained. Additionally, ensure that the building follows the approved plan and request the building completion certificate.

When purchasing a property in a layout, ensure that the layout has been approved by the CMDA or the Directorate of Town and Country Planning (DTCP). Also, verify that the roads and park areas in the layout have been handed over to the local body by way of a gift deed.

While you can perform some basic checks yourself, verifying the property title properly requires the expertise of an experienced legal practitioner or property lawyer. They have the knowledge and resources to conduct a thorough title verification and identify any potential issues or encumbrances.

To ensure that the promoter or land owner has no rights over the open spaces and the terrace after the entire undivided shares of the land have been transferred to the persons purchasing the flats or apartments, you should carefully review the property documents and verify that the necessary transfers and disclaimers have been properly executed.

An encumbrance certificate is a crucial document when purchasing a property as it reveals any legal liabilities or claims on the property, such as mortgages, liens, or court orders. Obtaining an encumbrance certificate helps identify any potential issues or encumbrances that could affect the property's title or ownership.