7 Mistakes to Avoid When Buying Property in India

Buying property is arguably one of the biggest decisions in someone's life. It's not just about investing money; it's about putting your money into your dreams, your future, and your peace of mind. 

But let's not kid ourselves. This process can be quite confusing, especially in a country like India, where the Real Estate market is immense and comes with twists and turns. One wrong decision can put a buyer in years of sorrow, excessive legal tussles, or severe financial depletion. 

But no need to worry. We have got your back.

In this blog, we'll take you through seven major mistakes people make when buying property in India and how to avoid them. This informative piece will help a novice buyer, as well as an experienced investor, make smart and prudent choices.

1. Skipping the Homework: Not Doing Proper Research

One of the biggest mistakes that a buyer is about to make is none other than not doing enough research. Buying property is different from buying groceries; you cannot just grab the first option that perceivably appears to be good. One has to dig beyond those layers.  
What to do:  First of all, find out everything about the location, builder, or the seller’s reputation. Find out whether the area has easy access to social amenities such as water and other social infrastructure. It is advisable to visit the site at different times of the day to get a general impression of the area. Do not rely on brochures or online pictures alone.
Why it matters:  Not paying enough attention during the due diligence process can lead to purchasing a property in a poorly developed area or from a fraudulent seller. It may not always be worth it, but it can definitely help you avoid a lifetime of headaches.

2. The Title Trap: Sidestepping a Title Check on Property

Imagine buying a property only to realize later that the seller wasn't legally entitled to sell it. Scary, isn't it? This happens more often than we care to believe.
What to do: Always check the title. Make sure that the seller has a clear and marketable title to the property. If there are any lawsuits, liens, or legal issues attached to the property.
Why it matters: An unclear, contentious title can breed lawsuits, which can mean you lose the property altogether. A clean title is non-negotiable.  

3. Going Solo: Unbending to Professional Help

Most buyers will save on lawyer fees or real estate agents by choosing to do it themselves. This is a classic case of being poundwise but penny-foolish. While it may sound unnecessary, not having professional services may cost you more in the end.
What to do: Involve a trustworthy and competent lawyer to scrutinize every inch of paperwork. Consult with a local realtor or property consultant who knows the marketbetter.
An example is Elite Edge Legacy which specifically helps buyers with every step in the process, from identifying the right one to the flawless completion of all legalities. With this expertise, they can save you a good amount in the end by avoiding mistakes that could cost you more.
Why it matters: A professional can recognize warning signals that you may overlook. Their guidance can protect you from fraud, particularly involving legal issues and bad deals. If you have the right team on your side, then the process of buying and selling real estate becomes that much easier.  

4. Paperwork Pitfall: Ignoring Legal Documents

Buying property involves a lot of paperwork. Skipping or rushing through it is a recipe for disaster.
What to do: Ensure all legal documents are in order. Key documents include the sale deed, encumbrance certificate, property tax receipts, and approval plans from the local authority.
Why it matters: If documents are missing or incomplete, legal complications arise and it may be hard to prove ownership or resell the property in the future.

5. Zone Out: Not Checking Zoning and Permits

Did you know that not all land can be used for all purposes? For example, agricultural land cannot be used for residential or commercial purposes without proper conversion.
What to do: Verify the zoning regulations and ensure the property has the necessary permits for its intended use. Check with the local municipal authority if needed.
Why it matters: Ignoring zoning laws can result in fines or even demolition orders, and sometimes one can lose the property altogether. Always make sure the property aligns with your plans.

6. Hidden Burdens: Overlooking Encumbrances

An encumbrance is the same as a claim or liability on some property. Encumbrance could be in forms like a mortgage, a loan, or even a legal dispute. It may pose serious trouble when overlooked.
What to do: Obtain an encumbrance certificate from the sub-registrar's office. The certificate shows if there have been any legal or financial liabilities on the property.
Why it matters: In buying an already encumbered property, one inherits debts and issues due to the previous owner's liability or lawsuits. Hence, one must make sure the house is free of all liabilities before purchase. 

7. Budget Blunder: Ignoring Additional Costs

One tends to confront only the monetary value, sometimes missing even the peripheral inks towards a purchase. In any case, the same tends to strain one's finances later on.
What to do: Include all additional costs, which may include registration fees, stamp duty, GST, maintenance charges, and interior costs, in terms of a budget plan before you purchase your dream home.
Why it matters: Negative commitment because, if not researched beforehand, it can eat up the budget and leave you in greater financial turmoil. Having the budget in place becomes a very smooth process to buy the property.

Conclusion:

Buying property in India can turn out to be rewarding if it is done rightly. By avoiding such common mistakes, you can secure your investment and realize the dream of owning a home. Perseverance and effort are your greatest allies along this road.

FAQs:

1. What is an encumbrance certificate?
An encumbrance certificate is a legal certificate reflecting whether the property has any financial or legal liabilities.

2. Why is a clear land title important?
To declare a clear land title means that the seller has the rights to sell it and that no disputes or claims are attached to it.

3. Should I hire a lawyer when buying a property?
Yes, a lawyer can verify all the legal documents, check for disputes, and see that the transaction goes on smoothly.

4. What are the additional costs of buying property?
Additional costs include stamp duty, registration fees, GST, maintenance charges, and interior costs.

5. How do I check zoning regulations?
You may check the zoning regulations with the local municipal authority or town planning department.