Can you assume the property is legally correct, if the project has pre-approved loan sanctioned?

We see a lot of hoardings and ads that say that the building or flat in Bangalore has a pre-approved home loan sanctioned to that project making it easy for buyers to avail loans at the bank in their endeavor of buying their dream home.

let us dig into this in a little more detail :

What is a pre-approved loan ?
A pre-approved loan is a document that is given by the bank to you to showcase to the buyer, your intent of buying property is very much real and serious. It says that the person is qualified by the bank to avail a loan for the amount mentioned in the document.

It is not the sanction of a loan. The bank just sums you up based on your salary and other income flowing in, if you are eligible to take on a loan and actually fulfill the loan in the agreed time. It is more of an internal check that it can give this person a loan upto this number considering the actual of their annual tax returns, salary and other income sources.

One must be aware that the pre-approved loan amount may not be the exact amount that finally gets sanctioned at the end, by the bank.

Why is the pre-approved loan important?
It gives the buyer a typical estimate of the loan they can avail, this can give them a range of properties that fall in their budget range.
It is also a indication to the seller, that this person can avail a loan from the bank to pay him or her for the property sale.
The document is valid for 6 months, wherein one can finalize on a property and ask the bank to approve the loan at the earliest.

What does it mean in terms of the legality of the property under question ?
The pre-approved sanction makes no claims on the legality of the property in question. This is to be clearly understood by everyone, that the banks have no legal obligation to verify the entirety of the documents of the builders. i,e in case there are problems that come in the long run, the bank shall naturally ask you to pay your dues.

The pre-approved loan sanction that most builders and sellers suggest one to obtain through certain banks of their choice, the legal document flow gets done internally and at most times it comes favorable towards the builders since the bank too is getting benefited with the home-loan procedures. It is best that one does their due diligence, checking the Khata, encumbrance certificates, title deeds and other documents of the property before taking the plunge.

The pre- approved loan certificate does not guarantee that the bank shall sanction a loan to that amount, it may vary with subject to conditions of the property. The final rates of interest also can vary at the time of the actual loan-sanctioning.
Although projects with a pre-approved loan sanction makes work easier for a lot of buyers it is recommended that they do check the legal aspects of the property with property verification lawyers and then decide to invest in the project.

Also interestingly, this document shall in no way guarantee or state that the builder/ developer shall actually complete the building in the stipulated time.

So it is better to err on the side of caution and verify the legal aspects of the property even if there are pre-approved loan sanctions present for a project. It is better safe than sorry.

Did you know the importance of a sale agreement in buying a home

You have often heard this is in all ads that are featured on the television,radio etc. that say
Please read the offer document carefully before investing
The real estate deals are not exempt of this due diligence, in fact it is here that you need more patience and do your home work right.

In the scenario that you have looked at a property that is up for sale, seen its documents of the Khata, encumbrance certificate,title deed etc, got it legally verified by property lawyers around or got an online verification of these documents done and got their green signal and decided that you shall go ahead and buy the property. The paperwork that is normally associated with buying a dream home is still not complete without the sale agreement, transfer of the name in the title deed etc.

What is the sale agreement ?

Like the word itself says, it is an agreement between the seller and the buyer that details all the aspects of the sale,the property details, the address or the location of the property, the agreed upon price of buying, the date at which the transfer shall happen etc.

Why is this important?

The answer to this question lies in the aspect that this document is legally binding to both the buyer and the seller, if the conditions of the sale is not met as agreed in the sale agreement, the grieving party can sue the other legally and obtain the compensation for it.

What can the sale agreement normally have ?

Like it is mentioned previously, there are a few set of information that is almost always available, the details of the property being transacted with, if it is a single independent house, a warehouse that is shared among others or an apartment that is being built or already available to move in.
Also mentioned shall be the information regarding the actual sale, i.e the amount to be paid for the property, inclusive only of the carpet area for the apartments. The details of the initial amount to be paid,also known as token advance or earnest money, the date of payment of installments if any. It is suggested that there are clauses neatly mentioned that indicate the plans for contingencies, if the buyer backs out, the seller makes changes to the building plan or the property is being bought as is or with renovations made as requested.

With the advent of RERA, the property buyers in Bangalore and all over India are now in a place to ask the apartment sellers for penalty in case the completion of the project is delayed from the time of agreed delivery.

It is best that one hires an expert lawyer to get the work done, because a shoddily done sales agreement can lead to complications later.
Areas of pain that can be avoided –
1) Draft a condition if in case the buyer or seller draws out of the contract
2) Make sure the agreement details whether renovations are to be made or given as is.
3) Please include the details as to what happens to the earnest money after completion of the sale.
4) In case of houses in lease, details regarding the payment of the dues or change in the owner to whom the money shall go should also be mentioned.
5) In case of houses under loan already, it is best to note if the amount is used to clear off the loan and get the papers back to the original seller and then proceed.
6) Check on the details such as property tax payments, no dues at all the government agencies.

Although these are markers for consideration, every sale agreement is different in its composition since its a system of agreement based on two entities of the seller and buyer. But it is something that needs to be read through twice, maybe even thrice so that nothing can come back and haunt you later.

So take your time and read draft a strong sales agreement that can keep both parties at peace. It is important to read the offer document before investing or signing on the deal of your house/property.

Buying a resale property ? Here is what you must do

“A home feels like home, when its something our own, not just four walls that surround us.”

There are a lot of us here in Bangalore that still prefer the old school values of looking for an independent plot rather than look for flats in Bangalore. There is a huge market demand for resale properties that open up in the market today.
some of them are sold like hot cakes, while others are lapped up soon. But the resale properties are to be dealt with some caution as they may be breeding grounds for complications.

here are a few things that one needs to consider to go ahead while purchasing these properties:
1) Location, Location & Location:
You would have heard this a million times before, but we will tell you again, the first thing to know is the location of the property. Please check if there are upcoming projects of development coming up in the area that can affect you both positively and negatively.
For example: Metro work starting in the area is sure to up the land rates in the long run but in the short-term mean that traffic is going to be wrecked. There are other considerations to check also, with regards to the location that is very important that deciTde whether the property rates are on up-draft or low-draft.

2) Reasons for sale:
This is a rather unwritten rule too. This is something that carries a lot of weight-age too, as the sales of property can be because of internal reasons such as property disputes, debts and other issues that come to bite one badly later. But if this is not the case, there are other due diligence to be made on your end.

3) Due Diligence is a must
Whether it is a flat, an independent plot or a resale property, one needs to always cross check if all the documents are in order.
The first on the list is the Title deed, that indicates that the said property indeed belongs to the person that is selling it or someone who has been granted the power of attorney to make the sale.
The next check is on the completion and possession certificates that are given in case there is a apartment building that is up for resale. These checks are vital and it is best that you hire a good property lawyer and get the paper verification done. This can be done by you or by experts online as well in case one needs to get the verification done faster.
The list goes on to the next document on the agenda, in terms of the Encumbrance certificate, Khata certificate and the payments of the property taxes. Once all of these are clear . one can proceed to the next stage.

4) Inspection of property:
The property may be legally correct but it is another best practice to actually visit the resale property, look at its vibes and then make a decision. This is needed more in case one decided to keep the same structure as the one previously available or tears it down to build new ones. Another thing to consider is if the house is actually built according to the sanctioned plan from the local authorities or have their been encroachements or extensions that are illegally constructed.
Also one needs to check if the house is in need of repairs, any breakages or leakages that are bound to happen.

5) Loans:
Once the property is upto your interests, one has to check if a loan already exists on the present plot or property and decide the actions that you are taking to make it work in your favour, whether you pay off the loan as a part of the buying process or some other arrangement needs to be thought off. Also one has to check if the banks can provide a loan for you to buy the property and provide them with documents that support your claim of buying a particular plot.

6) Sale agreement :
The sale agreement that captures all information regarding how the sale shall happen. If there are installments in which one shall pay the amount, the date on which the entire amount shall stand cleared, the date of transfer of documents to the buyer, every tiny detail of relevance has to go into this agreement.

These steps in general are a few things that one must check for when looking at a resale property that has opened up on the market.

Assureal – your ideal Property Verification Partner

Everyone who dreams to have a house in Bangalore, needs to follow certain procedures that are mandatory in making sure that the dream shall not remain a dream. In that long list of things to do, the most important of things is to make sure that property papers are perfectly aligned.

It is best to get your property papers verification done through property verification advocates in Bangalore, these professionals are well versed in this process. The process shall begin with you providing the details of the plot, upon which begins the work of these property lawyers. Assureal, can help you bridge the gap of running around to your lawyers with the list of documents that are needed for the green go- ahead for buying the property in Bangalore. They provide you with a chance to have your property verification done online anywhere in Bengaluru or in Karnataka entirely.

As you may have heard, due diligence with regards to the property papers have a lot of papers, deeds and certificates that need to be looked and verified. Assureal makes it simple for you, by providing you a list of services that cater to making this verification process, hassle-free for you as a buyer.

What does Assureal do – as a part of the legal verification?

The builder or seller will have provided you with a series of documents, Assureal shall come and pick this up from you and then cross check if the details given to you are genuine and match up to the documents in the local governing bodies.

The survey numbers that are provided are subjected to check and scrutinized, poring over all the details and seeking to see if they are a perfect match. The Title deeds, sale deeds and Encumbrance certificates, khata’s – these terms may sound alien and confusing to you but Assureal has been doing this verification work for sometime now and are well versed in the art of verification of property documents in Bengaluru. The verification of the above documents shall be made in with due diligence, given to every detail that needs attention. They are teamed with property verification lawyers that can perform all the legal work involved in obtaining these documents and verifying them for you.

But if you are wondering, if the builder or seller gives you a softcopy of the documents instead of parting with the actuals, even then – Assureal has you covered, with an in-house logistic team that shall extract all the data relevant for the verification – to check if there are legal or monetary constraints associated with the property in question.

There is a saying in Kannada, it is better to know in person and listening to them from someone. Assureal and its team of lawyers go the extra mile, with a visit to the site and perform the inspection of the entire plot to check if even in the physical form, they are telling exactly what is promised in the documents legally. The dimensions, the certifications, safety and other facilities that are promised are upto the mark and legally binding or not.

Adding on the team of experts shall also review the sale agreement, sale deed and the construction agreements made by the builder and help you make the best decision possible.

But if you are wondering, looking at the list of documents that are to be verified and you are in a jam when it comes to time constraint, then too Assureal has your back by providing you an expedited delivery that can make this entire process a little quicker to accommodate your timeline and help you make the right decision.

Assureal provides you the best services for the online verification of plot papers. We are here to enable you to relax knowing fully well that your work in safe hands and that you can take a breath of relief, when it comes to property verification of all the legal papers associated with the plots.

So, drop a mail to us at Assureal and rest easy on this cumbersome and tiring processes related to verification.

Khata certificate made friendly for all the property buyers in Bangalore

 

If you have been hunting for buying a plot of land, you would have been bombarded with a lot of jargons, like sale deed, encumbrance certificate and much more. In that long list of documents that are needed to complete the list is the Khata certificate.

Well this document is aimed to make the Khata certificate is no longer a question to you !

If you are a lay man, Khata is in its very authentic meaning is an account; like the term that you may have often heard, “Bank mei Khata kholo”- Khata here holds the account of the every piece of land that comes under the BBMP, i.e Bruhat Bengaluru Mahanagara Palike and is used to calculate and access the property tax that needs to be paid for – to the government for enjoying the civic amenities like water, electricity and so on…

The Khata certificate holds all the data regarding a particular site, including the name of the owner, the size, the area it covers and so on… It is not be confused with the title deed that specifies, under whose name the property is currently belonging to but here the case is to access and make sure that each property has paid its due with the usage of the amenities provided. The entire account is held by the BBMP, detailing if the property tax has been paid with regards to the property.

It is also important to know that in case of a sale, the Khata data also needs to be updated with the new owner of the account, so that the new owner is now responsible to pay the property taxes for that property.

How to apply for one?

Buy an application form from the BBMP and fill in the details of the plot and send the same to the Assistant Revenue Officer of the concerned area along with the information on the taxes paid for the plot, the Khata certificate shall reach you within 5 weeks either from BBMP or the Panchayat offices.

So, the next question would be – What is A Khata and B Khata?

The answer lies in the segregation with regards to the which authority is collecting the taxes, if the BBMP is collecting the taxes then it shall be a A Katha, if the municipal authorities are collecting it then it comes under B khata. In the year when BBMP was formed with the merger of BMP and seven city municipal commissions and 110 villages, it was observed that many plots had still no history of paying the taxes it needed to pay for the authorities either to the BMP or the CMC but they had not done it, so the BBMP regularized this with the introduction of two Khatas; A Khata and the B Khata.

The B Khata signifies that now the taxes are being collected by the local municipality with A Khata it is done by the BBMP.

Which Khata is better?

Although both Khatas are valid, the A Khata is the more complete one that can be used to get loans on the property and be used for trade purposes too, hence the A Khata is more preferred.

The B Khata can be changed to an A Katha if the plot has been DC approved, property taxes are upto date for the plot and a fee called the “Betterment Charges” need to be paid.

 

Now that this information has been made available to you, we hope all doubts with regards to the Khata certificate has been cleared and has aided you in your efforts to buy that home in Bangalore.

 

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