8 things you should watch out for before buying home

Home sales are weak. Infinite delays in completion of projects has made people wary of new apartments. Developers are struggling to clear-off their unsold inventory. However, experts say there has been no decline in the demand for plots making sellers cash in on the opportunity. Considering plots are easy to sell and require fewer approvals, here is a list of what you should watch out for before buying one

VERIFY TITLE DEED

First thing you need to check is whether the seller has a right over the property. See the title deed of the land to confirm whether the seller has the full right to sell the land. You can also take the help of a lawyer to get the deed examined. Divakar Vijayasarathy, co-founder, MeetUrPro.com, says, "A mere NOC from the panchayats or other local bodies would not constitute approval by the authority."

CHECK ENCUMBRANCE CERTIFICATE

It is important to verify that the land is free from legal dues. Sumit Jain, co-founder and chief executive officer, CommonFloor.com, says, "For this, check encumbrance certificate for, at least, 30 years. Given at the sub-registrar's office, this states that the said land does not have any legal dues and complaints."

APPROVALS BY LOCAL BODY

Make sure that the entire layout has been approved by the development corporation and local body of the city. Vijayasarathy, says, "The plan of the layout must contain the seal and signature of the authority approving the same. Without this seal and signature, the layout cannot be deemed to be approved."

RELEASE CERTIFICATE

Get a release certificate from the bank if the land has been pledged to get a bank loan. The certificate is to ensure that the loan on the land has been completely repaid. If there are coowners, take a release certificate from each of them.

PROPERTY TAX RECEIPTS

Ask for previous property tax receipts from the seller along with other bills related to the plot. The receipts will ensure there are no pending bills on the property adding later to the total cost.

VERIFY THE LAND-USE

Verify the land-use zone as per the city master plan for the plot. You can get the city master plan from the local body office in your respective city. It helps you to use the plot without any hindrance.

CHECK THE SITE

A thorough site visit should be carried out to make sure you get exactly what is represented in the layout. It is also helpful to interact with the neighbourhood to know about any illegal occupation or other disputes pertaining to the property.

TAXATION

You do not get immediate tax benefits in plots. Remember, for plots the tax deduction on interest is available only from the year the construction is completed. Jain, says, "Interest accrued during the construction period can be claimed as deduction over five years in equal instalments starting from the year the construction is completed. Thus, the tax benefits are delayed."