Buying a property is a significant investment, and in a city like Chennai, you must carefully look into several legal aspects before finalizing your purchase. If these aspects are overlooked, you may face disputes or financial losses later. Therefore, let us look at the important checks you should carry out before buying properties in Chennai.
Verify the Title Deed
The first and foremost document you must check is the title deed. This deed confirms the legal ownership of the property. It should be in the name of the seller and free from disputes. Always ask for the original deed and confirm that the property is not mortgaged or under any litigation. Without a clear title deed, the ownership transfer cannot be considered valid.
Check the Sale Deed
The sale deed is the legal proof of the transaction between the buyer and seller. This document records the transfer of ownership. Before registering your purchase, verify the seller’s sale deed and confirm that all earlier transactions are properly recorded. Missing links in the chain of ownership may indicate disputes in the future.
Look for Encumbrance Certificate
An encumbrance certificate is a crucial record that shows whether the property has any pending loans or legal dues. When buying properties in Chennai, always request an encumbrance certificate from the sub-registrar’s office for at least the past 15 years. If the certificate is clear, it means the property is free of financial or legal burdens.
Approvals from Local Authorities
Every property should have proper approvals from local bodies. For example, housing layouts must be approved by the Chennai Metropolitan Development Authority (CMDA) or Directorate of Town and Country Planning (DTCP). In the case of apartments, building plan approval and planning permits are essential. Without these approvals, the property can be considered unauthorized and you may face demolition or penalties later.
Verify Property Tax Receipts
Another key aspect to check is whether the property tax is paid up to date. Request the latest tax receipts from the seller. Any pending tax dues will become the responsibility of the new buyer. Checking this before registration avoids future liability.
Check for RERA Registration
The Real Estate Regulatory Authority (RERA) was introduced to bring transparency in property transactions. For new projects and under-construction properties in Chennai, the builder must register the project under RERA. By checking the RERA registration number, you can confirm whether the builder has complied with the rules. This also gives you access to details like project completion timelines, approvals, and legal status.
Confirm No Land Use Violations
Land use rules specify whether the property is meant for residential, commercial, or industrial use. When buying properties in Chennai, make sure the land use classification matches the purpose of your purchase. For example, a residential apartment must be built on land classified for residential use. Violations may result in penalties or restrictions on usage.
Verify Power of Attorney if Applicable
Sometimes, the property may be sold through a person holding a power of attorney (PoA). In such cases, confirm that the PoA is valid, registered, and specifically grants the right to sell the property. General or expired PoAs may not hold legal validity during registration.
Check for NOC from Relevant Authorities
Depending on the type of property, you may need a No Objection Certificate (NOC) from different authorities. For example, if the property is near highways or defense land, special permissions may be required. For apartments, a NOC from the electricity board and water board is usually needed before possession.
Verify Legal Heirs if It Is an Inherited Property
If the property is inherited, you must confirm that all legal heirs have agreed to the sale. In such cases, a legal heir certificate and a release deed from other heirs are required. Without this, disputes may arise later.
Registration and Stamp Duty
Finally, every property transaction must be registered with the sub-registrar office. The buyer must pay the applicable stamp duty and registration charges to make the ownership legally binding. Never skip registration, as an unregistered property is not considered valid in the eyes of law.
Conclusion
Buying properties in Chennai requires attention to these legal checks before finalizing the deal. From verifying ownership documents and approvals to checking encumbrance certificates and tax receipts, each step plays an important role. By carefully examining these aspects, you can complete the purchase with confidence and avoid disputes in the future.
