Look out for history of any litigation either with a customer or civic agencies.
Verifying the Documents
There are a few documents that the NRI buyer must insist on checking in original both at the time of booking a house as well as at possession:
* Clear Title deed in original along with history of transaction on the property.
* Encumbrance Certificate.
* No Due Certificate from bank if property was mortgaged.
* Approval of layout of the project.
* Intimation of disapproval by local civic authority (valid for one year only).
* Building Use Permission from local municipality consisting of:
NOC from department of fire services, power load sanction from the local electricity board, permission for drainage and sewerage connections, permission for water supply, approval from pollution control board, permission from the public health authorities.
NRI buyers must stay clear of the arbitration clause in the agreement drafted by the developer. They should not agree to the arbitration clause in terms of conditions relating place or arbitrators. If required the buyer should insist on a sole arbitrator who is acceptable to both parties.
Before taking possession
Before taking possession, do verify the following documents:
* Completion certificate issued by the local municipal authority indicating compliance and suitability for occupation.
* Possession certificate from local municipal authority indicating completion and functioning of water, sewage and electrical connections.
* Society papers and bye-laws for maintenance of the project by the registered owners.
Marketing campaigns and smooth talk by sales executives should not be the criteria for decision on property investment in India. In order to avoid being in a frustrating realty situation, the NRIs need to cross check the developer’s reputation and the prevailing prices at the locality through government agencies, NRI forums, friends and acquaintances before entering into any property deal from abroad.
— The author is CEO, BankBazaar.com