How to avoid Campa Cola Fiasco? Documents you need to check before buying a house...

Only a fool learns from his own mistakes. The wise man learns from the mistakes of others. In the city of dreams, where space is a crunch, Campa-Cola fiasco should not be allowed to repeat. Just because you are getting to buy an apartment in the most coveted location at a cheaper price, let’s not fall prey to it. It doesn’t cost you much to be prudent and take a well-researched decision to save yourself from investing your lifetime savings to buy your dream home. Some important steps that you need to take to make a well informed decision are:

1. Title Deed: This is the first document that you need to check before buying any property. The title deed is the legal document which authenticates the ownership of the property. Ensure that the document is original one and not a photocopy because owner can take loan against the said property. To go one step beyond, you should also ask for the previous deeds of the land which the seller possesses. Title deed would also include the sale deed and Conveyance deed. To understand these terms in detail, refer to Important Real Estate Terms.
2. Encumbrance certificate: The land that your property is built on should be free from any legal suits. Encumbrance certificate can be obtained from the sub-registrar office where the title of the land has been registered. The certificate ensures that the title of the land is clear from any liabilities or charges on the property.
3. Tax receipts and Bills: You should duly check whether taxes on property have all been made to the government and municipal offices. The owner should have no trouble to show the receipts of recent taxes paid.
4. Intimation of Disapproval (IOD): IOD should be obtained from respective authorities before they can start construction or sell the property. Normally, IOD’s are valid for a certain period of time and if the construction has not started within a year’s time, the same has to be obtained again. Make sure that the builder has obtained IOD before making a purchase.
5. Sales Deed: Buyer should always get a sales certificate from the builder. If the builder has obtained loan against the property it should be duly mentioned in the certificate that payback of loan is sole responsibility of the builder. Sale deed also contains the detailed information of the flat you purchase.
6. Completion Certificate / Occupation Certificate: Builder obtains completion certificate from the local government body once the construction is complete and the building adheres to the set rules and regulations pertaining to the design plans. Occupation certificate is obtained once adequate provisions for water, sewage and electricity has been made.