Navigating the Legal Maze: A Guide to Buying Property in Bangalore
So, you’ve decided to take the plunge and invest in property in Bangalore? Well, congratulations, you brave soul! Bangalore, the IT hub of India, has been a sought-after destination for real estate investment for years. Every day, developers are building new properties, contributing to the rapid development and expansion of the city. Buying a property can be a daunting task, especially when it comes to the legal aspects. Navigating the Legal Maze, with so many laws and regulations governing the real estate market, it can be hard to know where to start.
Moreover, with a booming real estate market and a wealth of opportunities, Bangalore is the perfect place to invest in property. But before you make that investment, it’s important to understand the legal aspects of buying property in Bangalore. Fear not, for BrokerinBlue is here to help you navigate the maze of legal jargon and paperwork.
1. Title Verification:
Before buying a property in Bangalore, it is essential to verify the title of the property. The title verification process includes checking if the property has a clear title, free from any legal encumbrances or disputes. It is crucial to verify the title to ensure that the property is legally sound and that the seller has the right to sell it. Therefore, BrokerInBlue recommends hiring a lawyer to conduct the title verification process for you. Don’t try to cut back on this by approaching your beloved Paternal Uncle or a jovial neighbor who loves to chat away during those morning walks.
2. Approval of Layout and Building Plan:
Local jurisdiction authorities like Bangalore Development Authority (BDA) are the governing bodies responsible for approving the layout and building plan of any new property in Bangalore. The approval process involves several stages, including site inspection, scrutiny of the layout plan and building plan, zone, and approval of the same.
3. Sale Agreement:
The sale agreement is a legal document that outlines the terms and conditions of the property sale. It includes details such as the price, payment schedule, possession date, and any other relevant terms and conditions. Hence, it is crucial for you to read the sale agreement carefully and ensure that all parties mutually agree upon all the terms. It is also recommended to have the sale agreement reviewed by a lawyer for the three most important clauses 1. Indemnity Clause, 2. Penalty Clause, and 3. Exit Clause, to ensure that it is legally binding.
4. Stamp Duty and Registration:
These are essential legal aspects of buying property in Bangalore. Stamp duty is a tax levied on property transactions, while registration is the process of registering the property in the buyer’s name with the government. The stamp duty and registration charges vary depending on the property’s location, type, and value. Also, it is predefined by the local authorities who have a set guidance value percentage for each locality and asset class. BrokerInBlue recommends consulting a lawyer or property consultant to know the exact stamp duty and registration charges applicable to your property. Psst! Do not fall prey to the hands of the touts lurking around the local bodies for their next bait.
5. Sale Deed and Possession:
Do your hair and smile at the camera! Once the stamp duty is paid and the sale deed is executed, the property’s possession and handover process begins. It is essential to ensure that the possession and handover process is carried out as per the terms mentioned in the sale agreement. It is recommended to inspect the property thoroughly before taking possession of it and ensure that all the statutory and facilities such as the Katha, Electricity, and Water are transferred into your name within 45 days.
Phew, that was a lot of legal talk. But trust us, it’s better to be safe than sorry. So, take our advice and seek professional help when buying property in Bangalore. And who knows, maybe you’ll even get lucky and find a property with a pool on the roof or a secret passageway. Am sure we all have a little bit of Harry Potter, Edmund, or even Tony Stark in us. Hey, we can dream, can’t we?
BTW, word of advice – keep all the original documents under the lock and key without laminating any of your documents.