Conduct
a due diligence of the property at the local registrar’s office that has
jurisdiction over the property. This can be done through a lawyer.
Ideally, the lawyer will check the last seven mutations on the khata
register. This will help identify the identity of the true owners of the
land. Title search spanning 30 years is effective and favoured by
financiers.
The
lawyer should be able to tell whether the property is subject to
litigation either directly or incidentally or facing
requisitions/compulsory acquisition.
Insist
on original title deeds, especially for land. Often, promoters and
developers begin projects when they are yet to be granted full ownership
of the land from the original owners. There is a higher risk of delay in
transactions should negotiations run into troubled waters. In instances
where one is purchasing property under development, this may not be
possible vis-Ã -vis builders. However if banks are financing such a
developer, then get a confirmation from the bank that has already
conducted it’s own diligence on that property and approved financing it.
Consult
the local ward office to see if the property is situated within grid for
utilities – such as electricity, water supply etc.
If
the agreement between the purchase and the builder includes building
costs, make sure that the payments are linked to completion of work at
certain stages.
Try to incorporate as many specific details as possible for construction
such as indentified types of fittings, particular components used in
construction, etc. Each of these becomes a term of the contract and the builder
is bound to provide these specifically.
