Important Documents to be checked before purchase of a property

Following are a list of crucial documents that one needs to check before buying a property:

(i) Authorities’ approval on Land titles and for construction permits

•            One should ensure that the land is owned by the builder.
•            Find out if the conveyance of the property is in favour of seller.
•            Urban Land Ceiling & Regulation Act clearance certificate has been obtained by the builder. Obtaining permission for using land towards non-agricultural purpose.
•            Municipal authorities’ approval of original plan is in place.
•            Commencement Certificate has issued by municipal authorities.
•            Issuance of occupation certificate by the authorities indicating the building is complete and fit for occupation.

 (ii) Title Clearance Certificate  

•            A title clearance certificate must be obtained from the advocate certifying that the intended property for purchase is unencumbered with a clear marketable title.

(iii) Society clearance and membership

•            NOC to be obtained from the society for transfer or sale of flat.
•            Society is paid the necessary transfer charges.
•            Transferring the name of the buyer in the share certificate obtained by the society.

(iv) Property tax records

Check if the seller has paid the property tax and other related taxes as set by the local civic authority upto the registration date of the purchased property. One can obtain certified copies of the property tax, water tax, water charges and electricity charges from the city’s sub-registrar’s office.

(v) Sales agreement

While executing a sales agreement one should check for the following:

• The serial number of the flat/floor is clearly indicated.
• The purchase condition of the property as well as the carpet area/built-up area is clearly indicated.
• The agreement should have the floor plan in the annexure specifying all the amenities (flooring, door, window, etc).
• The amount at which it is sold is mentioned.
• The agreement is signed and stamped laying down the payment schedule.
• The original stamped receipts and previous sale deed in case of a resale property must be provided by the seller.

(vi) Stamp duty and registration

• The stamp duty to be paid is determined on the agreement or market value of the property, whichever is higher.
• Under the provisions of the Indian Registration Act, the agreement is to be registered with the sub-registrar within a period of four months from the date of its execution.
• One should check the stamp duty and registration charges applicable as it differs from state to state across the country.
• Taking possession of the flat.
• The possession of the flat must be done as per the date specified in the agreement.
• To check if there is a provision within the agreement to provide a refund in the eventuality of the seller being unable to provide possession of the property on the date agreed upon.
• Amenities, as stated in the agreement, are present along with running supply of electricity and water.

KDMC new Property Tax collection method

While it is the end of 2015 for others, it’s the beginning of property tax collection regime for the Kalyan-Dombivli Municipal Corporation. The KDMC usually commences its property tax collection in January – February every year, however this time it has decided to start the drive early to ensure that tax payers clear their dues.

In a novel move, the civic body has decided to seize priced possessions of those who prefer to look the other way round when it comes to pay their property taxes. Evasive tax payers will not only lose costly household items but also their homes if they fail to pay property tax this year to the KDMC.

“If people fail to clear off their property dues, we will confiscate their household items like refrigerator, TV and washing machine,” said Anil Lad, Assessor and Collector of Taxes, KDMC. “There is a provision in the law to do so and we will be doing it literally this time,” he added.

Besides, if the tax liability is very high, they will seal the offender’s flat and later auction it to recover the dues.

“In 2013 and 2014, an Abhay Yojana was launched by the KDMC where people could pay their taxes and penalty on it was abolished,” said Lad. ”this time also, people are hoping for the same scheme so that they can forgo the penalty and interest. However, this will not happen,” he said adding that the abolition of octroi and LBT has resulted in huge financial crunch for the corporation.

If this drive is successful, KDMC plans to use the same strategy in water tax collection also.

Property Tax

This time Thane Municipal Corporation (TMC) is going to be tuff on property as well as water tax offenders because now corporations planning to release the list of property tax evaders in public. With a need to meet the fiscal deficit now municipal corporations is planning to take rough steps against those who have not cleared their property tax. However; The KDMC (Kalyan Dombivli Municipal Corporation) is ready to confiscate private belongings such as; fridge, television and washing machines and the TMC (Thane Municipal Corporation) has decided to make the names of property tax defaulters public.

According to Sanjeev Jaiswal, The Chief of TMC, “Soon we will release the list in public and it will contain the name of all those who have not cleared their property tax and it will applicable on those whose tax billing amounts are running in lakhs and even crores because from past many years such people haven’t filled their taxes”. The more he added that the water connection of water tax defaulters will be disconnected till the payment of bills. There are number of citizens who avoid paying their water and property tax and now corporation is ready to make tough decisions.

For the fiscal year 2015-16, the TMC has set the target of Rs 350 crore only through the property tax collection. According to KDMC officials, “It could be difficult time for tax defaulters because there are many defaulters who are waiting for the amnesty schemes of KDMC to pay the taxes, where they can get away without paying the penalty on late tax payments. The KDMC has announced that they could be confiscate household belongings of property tax defaulters.