When finalizing a big deal, it is essential to be prepared beforehand. Buying a commercial property is one such thing. Unlike buying a house in Tricity, investing in a retail space is a far more significant investment and a lot is at stake. So, here is a checklist that you must follow when opting for commercial real estate investment.
Check Sale Deed from Property Seller
One of the foremost things to do when buying a commercial property is to check a sale deed.
So, what is this, and what do you need to understand about it?
Sale Deed – It is a legal document that a buyer of property received from the seller of a property. It is proof that the sale and transfer of property’s ownership have been done and only after this does the property register sale and transfer of property’s ownership has been done and only after this, does the property get registered. Even if you are buying a 2BHK flat in Kharar, you need to sign a sale deed. So, not just for commercial but residential properties too, this agreement paper is very important.
Importance of Sale Deed – Before you execute the sale agreement/deed, it is necessary to check for compliance with other terms and conditions. In a way, this establishes that the property holds a clear title under you. Further, it helps you confirm whether the property is subject to encumbrance charges or not, all the statutory payments, such as property taxes, cess, electricity charges, maintenance charges, and many other such things have been settled by the seller or not.
Get Hold of Mother Deed – Sometimes in rush, we forget about a parent document like a Mother deed. Imagine you are planning to invest in a commercial property somewhere around a shopping center near Chandigarh. You need to trace who was the antecedent owner of the property right from the start. This is the only way to establish legal new ownership of a property.
In the dearth of Mother Deed, you may end up investing in a disputed property. Absence of the original agreement of the first buyer of the property certified registering authorities can also use its copy. If you find an absence sequence on the property ownership, then take an extra effort and check the records from the registering offices.
Construction Approval Plan – Any property whether apartments in Mohali or commercial ones, all have a building plan which is approved by the respective Corporation or Municipal Authority. It is the responsibility of the owners of the building to get the construction plan approved by the jurisdictional Commissioner or any other officer authorized by the respective Commissioner.
Building Plan – A building plan covers the entire design, architecture, and layout of the building including other utilities. No added construction is allowed and the authorities can demolish it if the construction plan doesn’t meet the original building plan.
Sometimes buyers look for property for sale in Kharar, try to incorporate changes in it, and forget to take cognizance of the original plan. This should be avoided and you are advised to get hold of the original construction plan of the building by the seller when buying a property.
Encumbrance Certificate (EC)
In real estate, an encumbrance is created as a charge on any asset that determines whether a property is free from all legal or monetary liability or not. Technically, this is a legal document that shows the asset is not a disputed property and highlights whether the uncleared loan or a mortgage is there on a property or not. To obtain an Encumbrance Certificate (EC), the buyer needs to submit a copy of the Sale Deed obtained by the seller.
Obtain Latest Tax Paid Receipt
It is essential for all those buyers willing to invest in any type of commercial property to obtain receipts for property tax bills. This is the only way to prove the property taxes are paid. As a buyer, you have the right to obtain the latest original tax-paid receipts and bills from the seller that includes the taxpayer’s name, and the date of payment. Apart from this, you can also ask for other essential bills, including water and electricity, or updated maintenance and society charges.
Conclusion
Nowadays, many people are investing in commercial buildings. The challenge that lies ahead of you in making such deals is avoiding becoming a victim of fraud. So, it is better to look for a genuine real estate agency in Mohali. This way, you can obtain all the desired documents effortlessly.