Steps to avoid litigation

Rajdutt Shekhar Singh

Purchasing a property requires utmost care. The buyer must verify the title of the seller by seeking original title deeds of the property, and ensure that the title of the seller is clear and free from all encumbrances. Since in normal course, lenders/bankers keep original title deeds of the property for granting loan facilities, this exercise (request for seeking original title deeds) assists the buyer in ascertaining if the property is mortgaged or if any third party interest has been created on it. 

n One must inspect sanction plans and completion certificate of the property issued by the authority concerned. 

n In addition, buyers are advised to obtain all tax receipts and bills from the seller. 

n The terms of the agreement to be entered into between the seller and the buyer for purchasing a property play a significant role. The buyers should include 'indemnity clause' in the agreement so as to prevent  any potential loss due to non-payment of dues/tax. 

n Buyers purchasing property directly from promoters in new projects  must know  about the Real Estate (Regulation & Development) Act, 2016 (RERA). Promoters are required to register their projects with the Real Estate Regulatory Authority . Thus, while purchasing a property, one must ask the promoter about the registration number under RERA. As per the provisions of RERA, promoters of the project are not allowed to accept more than 10 per cent of the cost of the project as an advance payment without first entering into an agreement for sale with the buyer. 

n RERA entitles the buyer to obtain information regarding sanctioned plans, layout plans along with the specifications, approved by the competent authority, stage-wise time schedule of completion of the project and may claim refund/ compensation if the promoter fails to comply or is unable to give possession of the property.

n The National Capital Territory of Delhi Real Estate (Regulation and Development) (General) Rules, 2016 sets out the rules framed under RERA. The Rules provide that all the information, as applicable, in respect of each project registered under RERA must be published on the Authority's website. The buyer must, therefore, be mindful of the above-mentioned information before entering into an agreement for sale with the promoter and making any payments in lieu of a prospective project. 

— The writer is partner, Singh & Associates