How Buyers Can Protect Themselves from Real Estate Lemons
A home is one of the most expensive and important purchases most people will ever make, which is why it’s so important to take the time to conduct due diligence before finalising a property deal.
For projects that are still under construction, one of the most important things to ensure is that the builder has all the necessary approvals in place. For instance, documents that potential buyers should ask for include: the permission to develop land into a residential complex; environmental and municipal clearances; documented authority for the builder to transfer the undivided share of land to each flat owner; disclosure of all facts relating to the property; the Commencement Certificate; and the final blueprint.
When it comes to buying property from independent homeowners, buyers should make sure the seller actually has the right to sell by looking at the house agreement or utility bills. Buyers should also check that there are no pending charges due for the property or any pending litigation.
Finally, buyers should watch out for mortgaged properties. In this case, buyers can check the original home loan documents with the lending institution. If a seller claims to have cleared all debts, always ask to see the bank’s original discharge letter.