By Soniya Gaonkar on May 27, 2022 7:59:45 PM
Commercial Building for Sale in Pune – Top 5 Legal Factors to Check and Confirm
Legal aspects, if ignored, may lead to consequences, dealing with which could become an absolute challenge. There have been cases where people, oblivious to legal implications, have landed in legal hassles because the property wasn't legally clear or dubious.
Hence, while buying a commercial property in Pune or any other city, you must inspect essential legal aspects to ensure you own the property and that the property is free of litigations, disputes, claims, etc. You must consider hiring a lawyer to help you check each document carefully and confirm accordingly.
Buying New Commercial Properties in Pune – Legal Checklist
These documents can help confirm the legal status of the property and if you can buy it. You must submit the file to your lawyer to review it thoroughly to help you determine if it is safe to buy the property.
- Sale Deed
The sale deed establishes the ownership of the property's title. It is imperative to register a sale deed. But before you register it, you must execute the sale agreement and check for compliance with various terms and conditions mutually agreed between you and the seller.
Additionally, before you execute the sale deed, you must check if the property has a clear title. The seller should also confirm if the property is subject to encumbrance charges. We'll look at what is an encumbrance certificate later.
Before the sale deed, the seller should have settled statutory payments like water charges, cess, property tax, electricity charges, maintenance charges, etc.
- Mother Deed
The mother deed document helps trace the property's origin/ antecedent ownership from the beginning, especially if the property has had multiple owners. It helps further sell the property, thus establishing the new ownership.
The document includes a charge for property ownership. It should record the sequential, continuous, and unbroken references to the previous ownership.
If a particular element is missing, you must check the revenue records or recitals, records from the registering office, etc. Nevertheless, in any case, it is necessary to update the sequence until the property's current owner.
- Khata Certificate and Khata Extract
A Khata and B Khata refer to the account of the property's owner. They are an imperative requirement to register a new property and to execute the transfer of a particular property.
Khata Extract refers to obtaining property details from the assessment registrar. You need it while buying the property and getting the trade license.
'A' Khata has properties listed under the corporation's jurisdiction, the construction of which is legal. On the other hand, 'B' Khata has properties under local jurisdiction, but which have violated the rules and the construction of which is deemed illegal.
It is obvious that you must avoid purchasing a B Khata property considering the illegal aspects involved in them. However, if you felt a B Khata property to be potentially remunerative and useful in the long run, you may convert it to A Khata under certain schemes by paying the required penalty.
- Property Tax Receipt
The seller must have paid all the property taxes to date and should have proper and legally valid receipts. You must confirm this with the local government body or municipality before engaging in the transaction with the seller.
The seller should produce the original tax-paid receipts and bills. As the buyer, you must check the details of the owner's name, the payment date on the receipt, and the taxpayer's name. Suppose the owner fails to produce a receipt or does not have it. In that case, you must connect with the local municipality and provide the property's survey number to confirm the land's ownership.
- Encumbrance Certificate (EC)
Encumbrances refer to the charges in the ownership or liabilities created on a property held as security against a home loan. It comprises all the registered transactions related to the property during the period for which the EC is sought.
The certificate serves as proof of the property's sale and the presence of any mortgage or transaction concerning it. You get an EC when you submit the sale deed. It may take around four to seven days or more to obtain the EC. The time required to get the EC depends on the period of the EC you look to seek.
Other important documents to check while buying a commercial space in Pune include Power of Attorney (POA), betterment charges receipt, building approval plan, and stamp duty. Your lawyer can help you check every document from the legal angle, point out concerns and help you address them appropriately with the property's developer or seller.
Want to Buy a Commercial Space in Pune? Choose KWT
Kohinoor World Towers, widely known as KWT, is an upcoming massive business center in the heart of PCMC near Pune. The project comprises multiple business towers, several multi-sized offices, and ultra-modern amenities.
It is conveniently located on the Old Mumbai Pune Highway and proximal to Chinchwad Station and the newly built metro station. Additionally, it provides excellent connectivity through the arterial road and is easily accessible from various industrial and IT centers spread in and around PCMC and Pune.
Call +91 20 6764 1818 to know more about KWT.