I) Understanding the Legal Aspects of Buying Property in India

Property Title Verification

Before making any purchase, it's crucial to verify the property's title. This process involves checking the ownership history and ensuring that the property is free from legal disputes or encumbrances. A clear title guarantees that the seller has the right to transfer ownership to the buyer.

RERA Compliance

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to protect homebuyers' interests and promote transparency in the real estate sector. Ensure the property is RERA-registered, which means it complies with the regulations, such as timely delivery and adherence to approved plans. You can verify a project's RERA status on the respective state's RERA website.

Property Registration in India

Once the sale deed is executed, the property must be registered with the local sub-registrar's office. Property registration in India is a legal requirement, ensuring the transfer of ownership from the seller to the buyer. The registration process involves paying stamp duty and registration fees, which vary by state.

II) Financial Considerations for Property Purchase

Home Loan Process in India

Securing a home loan is often a critical step in the property buying process. Start by comparing loan offers from different banks and financial institutions, focusing on interest rates, loan tenure, and eligibility criteria. The home loan process in India typically involves submitting necessary documents, including proof of identity, income, and property details, followed by a thorough evaluation by the lender.

Down Payment and Loan Disbursement

In India, banks usually finance up to 80-85% of the property value, requiring the buyer to arrange the remaining amount as a down payment. Once the loan is sanctioned, the disbursement happens in stages, especially for under-construction properties, aligning with the project's progress.

Tax Implications of Property Purchase

Buying property in India comes with various tax benefits. Under Section 80C of the Income Tax Act, homebuyers can claim deductions on principal repayment, while Section 24 allows deductions on interest payments. Understanding these tax implications can help in better financial planning and maximizing savings.

III) The Property Buying Process in India

Initial Research and Shortlisting

Start by researching the market, focusing on location, property type, and budget. Shortlist properties that meet your requirements and arrange site visits to assess them in person.

Legal and Financial Due Diligence

Conduct a thorough legal check on the property's title, RERA compliance, and pending dues. Simultaneously, finalize your financing options, including home loans, and get a pre-approval if possible.

Negotiation and Agreement

Once you've selected a property, negotiate the terms of the sale with the seller. This includes the final price, payment schedule, and other conditions. After reaching an agreement, both parties sign the sale agreement, which outlines the terms and conditions of the sale.

Final Registration and Possession

The last step involves registering the property in your name, paying the stamp duty, and completing other formalities. Once registered, you can take possession of the property.