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Listed below are some of the things that have to be kept in mind while purchasing a residential property:

1. Locality:- Proximity to Transport hubs, Schools, Hospitals, Market, Central business district, Entertainment centres, Hotels, Restaurants, Pollution levels, Safety records of the Neighbourhood.
2. Total area of the Property i.e. Carpet + Built Up Area + Super Built Up Area.
3. Adequate car parking space.
4. Construction should be of a high quality.
5. Reputation of the Builder or Seller. Check around with local sources to find out more of the Builders reputation.
6. Adequate Water, Electricity and other Utilities should be an important factor.
7. Get a good idea of the costs of various components like Price, Stamp duty, Registration charges, Transfer fees, Monthly outgoings (Expenses ), Society charges & Costs of Utilities.
8. Assess the Potential Resale value or the Potential rental income of the Property.
Documents to be verified before buying the property
Certificate of Encumbrance is issued in respect of charges created on a Property. In case the property has been offered as a security for a loan or has been purchased with borrowed money, a charge is created in the form of an encumbrance. The Property may be Mortgaged as a security for any debt or obligation.
In case of any transaction of Sale or Purchase of Property, a No Encumbrance Certificate is a very important document to be obtained. It is also issued for the purpose of Mortgaging a Property against a loan. It certifies that the Property in question is not already Mortgaged. If it is already Mortgaged, the liability of the outstanding loan will also devolve on the new owner.
The Encumbrance certificate is usually issued in the language in which the registers and records are maintained at the Sub-Registrar’s office. However, an english translation can be obtained on payment of an additional fee.
The purchaser of the Property generally obtains this certificate from the office of the Registrar.
To obtain a No Encumbrance Certificate, these procedures need to be followed:
1.Apply on Form 22
You should apply on Form 22 (with a Rs 2 non-judicial stamp affixed) to the Tahsildar giving your complete Residential Address and the purpose for which the certificate is required. You should attach a copy of the ration card or any Residence Address proof showing the address duly attested.
2 Total area of the Property i.e. Carpet + Built Up Area + Super Built Up Area.
2.Details of Property
The application should furnish details of ownership of the Immovable Property concerned giving the correct Survey number and place where it is situated. It is very important that the period you need the certificate for, full description of the Property, and its measurements and boundaries are clearly mentioned in the application.
3.Form 16
In case the Property does not have any encumbrance during the period, Form 16 is issued. This certifies that no Encumbrances - i.e. no charges have been Registered on the Property.
The application should be submitted to the jurisdictional Sub-Registrar’s office. It is essential that the requisite fee be paid. The fee is to be paid year-wise, with any fraction of the year being taken as a full year. The Tahsildar will seek a report from the patwari whether there is any entry in favour of any person or legal body. In case there is no such entry and the report is favourable, the No Encumbrance Certificate is issued. The time taken may be any-where between 15 to 30 days. The No Encumbrance Certificate is issued on either Form 15 or Form 16.

In case the Property has any charges Registered against it, Form No 15 is issued. Form 15 discloses the nature of charges created, documents of the Property that have been registered, amount secured, references etc.

In case a particular document is not registered with the office of the Registrar, it won’t be captured in the Encumbrance Certificate. For example, in case of creation of Equitable Mortgage. This is a Mortgage by deposit of title deeds, where the borrower deposits the original documents pertaining to the Property with the bank and does not get it Registered at the Registrar’s Office. Also,Testamentary documents need not be registered with the Registrar. Further,leases for a period of less than one year need not be registered. As such, transactions won’t be captured by the Encumbrance Certificate and you have to rely on the attendant circumstances to protect your interests.

The certificate discloses the Encumbrance status of the particular Property. The Certificate is issued for a particular period of time and does not cover any period prior to or following the period mentioned. The Certificate is an extract of the register maintained by the Sub-Registrar’s office, which in turn is based on the documents registered with the Registrar’s office.

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- C.G. Jung


#441/35, 20th Main Road,
Near WTO Center, West of Chord Road, 1st Block
Rajajinagar,Bangalore- 560 010,
Karnataka ,India.
080-2332 5900.