Legal Aspects of Buying Property in Hyderabad
Buying property in Hyderabad, like in any other city in India, involves several legal aspects to ensure a smooth and secure transaction. Here’s an overview of the key legal aspects you should consider when purchasing property in Hyderabad:1. Title Verification
- Clear Title: Ensure the property has a clear and marketable title. The seller must have legal ownership without any disputes, encumbrances, or claims by third parties.
- Title Deed: Check the original title deed and verify it with the sub-registrar’s office to confirm authenticity.
- Legal History: Review the history of the property for at least 30 years to ensure there are no pending legal issues or disputes.
2. Encumbrance Certificate
- This certificate proves that the property is free from any monetary or legal liabilities, such as mortgages, leases, or unpaid loans. It is usually issued for a period of 13 to 30 years.
3. Sale Agreement
- A legally binding document that outlines the terms and conditions of the sale, including the price, payment schedule, possession date, and other mutual obligations.
- It must be executed on a stamp paper and signed by both parties.
- Ensure it covers the construction schedule (if under construction), penalty clauses, and a clear handover timeline.
4. Ownership and Identification of the Seller
- Verify the identity of the seller through Aadhaar, PAN, or passport and cross-check these details with the title documents.
- If the property is owned by more than one person, all co-owners should sign the sale agreement.
5. Building Approval and Land Use
- Zoning Laws: Ensure the property complies with Hyderabad’s zoning regulations (residential, commercial, etc.) and land-use policies.
- HMDA, GHMC, or DTCP Approvals: Check if the property has approval from the Hyderabad Metropolitan Development Authority (HMDA), Greater Hyderabad Municipal Corporation (GHMC), or the Directorate of Town and Country Planning (DTCP). Unauthorized constructions or deviations from approved plans can lead to legal trouble.
- RERA Compliance: If the property is part of a real estate project, check if it is registered with the Telangana Real Estate Regulatory Authority (RERA), as mandated by law.
6. Property Tax Receipts
- Ensure all property taxes have been paid by the previous owner. Unpaid taxes could become your responsibility once you acquire the property.
7. Conversion of Agricultural Land
- If the land was originally agricultural, ensure it has been legally converted into non-agricultural land (residential or commercial use) through the appropriate permissions from the relevant authorities.
8. No-Objection Certificate (NOC)
- For certain properties, obtaining a NOC from various departments (such as fire safety, water, electricity, etc.) may be necessary, especially in large projects or under-construction properties.
9. Stamp Duty and Registration
- Stamp Duty: In Telangana, the stamp duty on property transactions typically ranges from 5% to 7% of the property value.
- Registration Fee: The registration fee is an additional 1% of the property’s value.
- Ensure that the sale deed is registered at the sub-registrar’s office to transfer ownership legally and prevent future disputes.
10. Possession and Occupancy Certificate
- If buying a flat or apartment, ensure the builder has an Occupancy Certificate (OC), which confirms that the building is ready for occupancy and has followed all building norms.
11. Loan and Mortgage
- If the property is being financed through a loan, the bank will conduct its own due diligence. However, you should still cross-check the legal aspects personally.
12. Inheritance and Succession Laws
- If the property has been inherited, verify the succession documents such as the will, legal heir certificates, or partition deeds to ensure the rightful ownership of the seller.
13. Litigation Search
- Conduct a litigation search to check if there are any ongoing legal disputes over the property in any court. This can be done at the local court or through legal advisors.
14. POA (Power of Attorney)
- If someone is selling the property on behalf of the owner through a Power of Attorney (PoA), ensure that the PoA is valid, specific, and registered.