The following documents you should check before buying an under-construction property:-

Title Deed

Sale Deed

Mother Deed

Building Approval Master plans

Land Records

Change of Land Use (CLU) Certificate

Commencement Certificate Municipal Authority

Encumbrance Certificate (EC)

Conversion Certificate (Agricultural to Non-Agricultural land)

Betterment charges receipt

The latest tax paid receipt

Clauses of Builder-Buyer Agreement

Clauses of Allotment Letter

Power of Attorney (POA)

Please refer to the first question for the list of documents (The documents required for an under-construction property). Apart from those, one should ask for the followings documents:-

Completion Certificate

Occupancy Certificate

DTCP approval

Structural safety certificate

Environment clearances

Fire safety equipment and mechanisms

Water and electricity connections

No-Objection certificate from Bank in case if builder got loan from Bank

Share Certificate from Society (in case of cooperative housing society)

Society Related Documents

Possession Certificate

Khata Certificate and Khata Extract

To buy a resale property please ask the owner following documents:-

Sale Deed

Mother Deed

Building approval plan

Encumbrance Certificate (EC)

Conversion Order/ DC Conversion

Latest tax paid receipt

Khata Certificate and Khata Extract

RTC (Record of Tenancy Rights/Certificate) Document

NOC from Society

Occupancy Certificate (for a ready to move in)

Possession Certificate (PC)

Following points we should keep in our mind:-

Property valuation: It is advisable that the buyer seeks technical expertise to evaluate the property before approaching the bank, as the bank would safeguard its interests by evaluating the property at a lower rate considering the depreciating property value in future. This makes the buyer eligible for a lower loan amount irrespective of a higher income since the bank caps the loan amount at around 80 per cent of the concluded valuation.

The buyer should also cross-check if the property already has an existing loan: The buyer should always check if the original property documents have been mortgaged with the bank/financial institutions (‘Banks’). A bank considers a loan only once the existing owner completely repays the loan and has the original documents formally released. Unless the buyer obtains the original documents he/she will not be able to obtain a new loan.

The property which you are going to buy has a marketable title: The property you are going to buy either is a resale flat or individual property, ask the current owner for a clear marketable property title. It should not have other claimants. In case if the property has more than one owner make sure that they all are ready to sell.

Ready to move flat: While buying a resale flat, a buyer should check before for all amenities and other requisites. Remember to check whether there are any outstanding dues on the utility bills or maintenance and on the allotment of parking space

No Vat or Service Tax: If you are buying a ready to move in resale flat you will not have to pay any Service Tax / VAT.

Clarification on Maintenance Charge: If you are buying an old property you should always get the clarification on the maintenance charge by an association member.

Following points we should keep in our mind:-

Quoted area of the flat i.e. Carpet, Built-Up Area and Super Built Up Area

Car parking space

Location – Proximity to your workplace, educational institutions, hospitals, shopping areas, entertainment centre, transportation, pollution levels.

Construction Quality

Builder's Reputation

Water and electric supply and backup

Cost components like price, stamp duty, registration charges, transfer fees, maintenance charges and other payments

Property's resale and rental value

Other advantages and disadvantages of the property

Stamp Duty is very similar to sales tax and income tax that has to be paid in full and on time. A buyer has the sole liability of paying the stamp duty unless there is an agreement to the contrary.

The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.

Carpet Area - This is the net usable area measured wall to wall, from the inner faces of walls. Simply put, it is the area in a flat that can be covered by carpeting. Some builders may add half the actual area of a terrace or dry area while calculating the total carpet area. Others may treat these spaces like internal rooms and consider the entire area.

Built-Up Area - This is the gross area of a flat. Besides the carpet area, it includes the space covered by the wall thickness and ducts. Generally, it is 10-15 per cent more than the carpet area of the flat.

Super Built-Up Area - The current trend is to consider this as the saleable area. It is calculated by adding the markup for common spaces to the built-up area. These common spaces include the ones on the floor (lifts, staircases etc) and those in the building (entrance lobby, electrical room, pump room, flower beds etc). Basically, it includes all the common amenities that are built, but not directly charged to the customer. Parking space is excluded from this calculation and is typically charged separately.

The breakup of areas is extremely essential as builders can place any space from 65% to 85% per cent of the super built area as carpet area. It would then imply that if the area is quoted as a 1,000 sq ft super built-up area, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the vendor/ builder mention it in the sale deed.

It is definitely important to inspect the property before purchase as probably it is one of the largest single investments made by most buyers. It is crucial to know all the details of the property and the need for any major repairs/modifications before it is purchased. It is easy to crosscheck the commitment made by the builder and actual implementation if a pre-purchase inspection has been carried out. A close inspection points out the positive and negative aspects of the property, as well as the maintenance that will be necessary to keep it in good shape. Few important points to check while inspecting are:

Plumbing systems, drainage, water faucets and sanitary fittings.

Electrical systems, circuit breakers, wires, the capacity of the electric meter and functioning of light fittings.

Roof, walls, ceilings, floors, paintwork.

Foundation, basement and visible structures.

Doors and windows, latches, locks.

Structural stability of the building.

Vastu shastra is a traditional Hindu system of architecture that literally translates to "science of architecture. Vastu Shastra is an India base Shastra that was made for town planning and any kind of use of land or structure needs to be followed with five-element of the universe to make the structure long-lasting and who lives in that will get Peace, Prosperity & Happiness. No matter if it's for Residential or Commercial purposes. Wherein Feng-Shui is China-based Shastra that was for a similar purpose but it's based on mainly two elements i.e. Feng means Air and Shui means Water in Chinese. They do not emphasize breaking structure but will have more remedial items to make your life easy.

While purchasing a property if directions and Vastu are kept in mind it surely brings in good luck. The different directions are believed to be governed by various deities in Hindu Mythology and in turn, such deities govern various aspects of our life. It, therefore, pays to ensure that the property and constructed areas are in perfect harmony and accordance with their natural element and deity.

Buying a commercial property is much riskier than buying a residential property. It requires a complete analysis & comparison of all the available options & study of expected returns on investment. A few important factors which must be considered before purchasing a commercial property are as follows:-

Location: A lucrative location today might turn out to be an unwanted destination tomorrow. You cannot predict the future but can decide the basis of the past trends of businesses in the area under consideration. At the same time, it is very important to consider the distance between end-user & suppliers. The business must be accessible to the end-user to be successful.

Budget: Any activity, which needs investment, needs budget planning before execution. Similar is true for a commercial property purchase transaction. It is critical for the investor to lay down the budget allocation towards the property cost amongst all other business-related transactions. This will also help in the easy selection of the commercial property amongst the available options. However, in the absence of the entire amount of investment one may pay just a small down payment and take a mortgage for the remaining amount.

The physical condition of the property: How and for what purpose was the property used before your purchase is important to know. This will give an idea of the wear and tear this property must have gone through and what kind of repairs it might need in the future. This would also help understand the resale value or rent that could be earned in the future.

Property and its allowable purposes: Every kind of business would put the property to a different purpose. For example, a CA firm would need an office space whereas a factory owner or a manufacturer would put the property to industrial use. Thus, it becomes critical to know the lawful use that the property can be put to before finalizing.

Limitations to modify: Basis the properties of the applicable laws have, there are restrictions on modifying the exteriors of interiors of the property. Study the laws in detail & also be clear about your requirements. At the same time, each property will have some maintenance costs.

Availability of support services: Other services like parking, lift, security, etc. must also be carefully studied while finalizing the commercial real estate. These services if available, not only help in running the business successfully but also contributes to the resale value or determine a better rental in the future.

Opportunity to expand or lease out in the future: A commercial property should be such that in case of expansion it fits the requirement or in case of a business slowdown or closure it has sufficient takers for leasing.

Infrastructure and neighbourhood: Infrastructure development in the area does affect the property value both positively & negatively. Developments like railway line construction, etc. might affect the value of your property value. Also, clearly study the availability of basic utilities like electricity, water, drainage etc.

Litigation on property: The commercial property should be free of any old or existing litigation. In the case, any such litigation is found on the property the buyer gets a chance to re-negotiate or may also decide to leave the deal immediately.

Hidden Costs: Many properties have certain hidden costs. These costs are associated with the running and maintenance of the property. These potential costs must be estimated in advance and discussed in the contract itself.

Vacant land is one of the most overlooked and misunderstood real estate investments in the world. A lot of people have this erroneous notion that vacant land is a “weak” (or even “pointless”) investment because…

It doesn’t produce income.

It just sits there and nothing happens.

It’s just boring.

It’s an unfortunate misconception because the truth is – that vacant land is capable of producing some serious cash flow and it’s one of the best investments in the world because of its hands-off nature and extreme versatility. Here Are 11 Reasons Why You Should Be Investing In Land:

There’s Nothing to Replace or Renovate

With Vacant Land, You Don’t Need to “do” Anything to the Property.

The land is a “Hands-Off” Investment.

There’s No Maintenance and No Emergencies

Statistically, Vacant Land Owners are Highly Motivated to Sell.

Land Investors Have Virtually No Competition to Deal With.

You Can Do Deals Virtually

The Expenses Are Few and Cheap

You Can Create Income with Vacant Land

The land is Very Inexpensive to Own as a Long-Term Investment.

Land Gives its Owner Peace of Mind.