Why you should take legal advice while buying a property?

Buying a property could be a daunting task in Mumbai and once a property is chosen you could actually drown in the needed paperwork. However, there is plethora of minute details that shouldn’t be overlooked. The expertise to comprehend the clauses and legality of the paperwork is very much required. Therefore, it is wise to not overburden your existing schedule and feel anxious about the dealings but to avail services of a legal property advisor for the same.

We must consider the significance of legal assistance during a property purchase and how it can help home buyers, not only to guard against defects but also save money in the transaction

Since you are putting your life savings in buying the property, you should take legal opinion for the process, to safeguard your interest. Furthermore, purchasers should acknowledge the Importance of title ship and marketability of the property

Importance of Title in the property

The matter of title is so complicated that the real estate regulations require a developer to buy a title insurance, with respect to the new project in Mumbai that he is developing, in order to secure the buyers against any claim or defect in the title of the property. In case the property has been mortgaged by depositing the original documents, a buyer may not know if the original documents have been handed over to him, as it is not difficult for people to get copies of documents made in such a way that they look like the original. To avoid any litigation with respect to the property which you are buying, it is important to ascertain whether the developer has duly complied with all the laws and procedures, related to the construction of the property. There are many properties that have not received occupancy certificates, due to non-compliance of some conditions imposed at the time of obtaining approvals for the plan from the local authorities.

Real estate purchase agreement and other documents

This may be in relation to the land, as the property may have been constructed on freehold land, where the absolute title is transferred to the buyer. The land may have also been acquired under a lease, where the ownership of the land eventually passes on to the original owner, at the end of the tenure of the lease.

A majority of property buyers do not take the help of lawyers for drafting of the purchase agreement and instead, ask the broker to help them get the agreement done. The brokers, in most of the cases, have a standard agreement, in which they merely replace the details of the property and the buyer and seller. They seldom realize that there may be special circumstances, which warrant that the agreement should be drafted on some specific lines for example when the property is sold by a legal heir or an executor of a will.

Stamp duty and income tax implications of property purchase

For all transactions of immovable residential property in Mumbai, the purchaser has to pay stamp duty on the market value of the property. Every state has its own stamp duty ready reckoner rate, popularly known as circle rate. The rates specified in the stamp duty reckoner, are the base rate at which stamp duty for property has to be paid. Nevertheless, certain deductions are allowed from the market value, based on the age of the property, whether it is on leasehold land or freehold land, etc. As per Section 50C of the Income Tax Act where the stamp duty ready reckoner valuation is higher than the agreement value, the seller is presumed to have received the consideration as stated in the stamp duty ready reckoner and is required to pay capital gains tax accordingly, unless the difference is not more than five percent over the agreement value.

Only a person, who knows all the laws pertaining to the purchase of property, can help you save money, as well as safeguard your interest in the property. The one or two percent of the cost of the property that you spend towards this will help you take the right decisions while purchasing a property.

My name is Rahul Pawar and currently I am working as a Sales executive with one of the most renowned builder in Mumbai. If you are interested to buy a href=https://www.ashwinshethgroup.comresidential property in mumbai then contact me directly