With its rich heritage and unique location, Kolkata enjoys an unparalleled strategic benefit in the real estate industry. Due to this, there has been a rapid growth in the development of affordable to high-end residential projects to meet the high demand for housing units.
People tend to buy things in a hurry, whenever they come across exciting deals or discounts. But if you are planning to buy a real estate property in Kolkata, hurrying will only make the process complicated. When it comes to put years of savings in real estate, everybody must remain cautious and well informed as so much of legal paperwork is involved in this process. Taking care of legal papers of the property and home loans will eventually ensure your rightful ownership on a property in Kolkata without much complications.
Home buyers look forward to bring lifetime security and earn social respect by owning a real estate property in Kolkata. A potential home owner must consider necessary legal advice and try not to make any mistake while evaluating the property papers and relevant information associated with the purchase. To avoid unwanted problems, check the following legal formalities that a home buyer must fulfil.
What to do:
1. A checklist of property papers
The Title Deed:
This document provides you with the right to the property. In case the ownership changes, this document is the only proof of that as well. Without this document, no one will be able to resell the property in the future.
The building approval plan:
The responsible government authority has to sanction a building plan before the actual construction work starts. Although, the legal formalities differ from one state to another yet a construction project without the building approval plan is considered to be illegal. Government has the right to demolish such projects that lack the necessary attributes of legal constructions.
While buying a real estate property in Kolkata, check for this certificate as this ensures your potential property is free from all mortgages. Never forget to ask for this certificate before registering the property under your name.
Certificate of completion:
This document is issued by the local municipal corporation stating whether a particular property in Kolkata has been constructed adhering to the rules of building or as per the approved plan. Without this document, home loans cannot be granted.
Certificate of commencement:
The authority issues this legal document after an inspection, while the construction work is going on at a property site. This inspection is an assurance of meeting all the project criteria. A builder must collect this paper to make the project profile more credible before his/her potential customers.
Check the status of the property tax:
If the property tax is paid on time every year, all the documents are supposed to remain on point. As it requires all the valid legal documents, it is an all-in-one assurance of the credibility of a particular construction project.
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2. Verify the authenticity of the seller
Apart from verifying the property papers, specific conditions of sellers must be rechecked on several grounds.
- Enquire about the owners before buying a property in Kolkata, even if more than one individual owns the property.
- Check whether your seller operates as a company, a trust or a real estate firm.
- Verify the status of the project along with the seller’s nationality and if they have a government license to sell a real estate property in Kolkata.
3. Certificate of occupancy
Occupancy certificate is issued by the local authority on completion of any new real estate project that adheres to all building codes, regulations and laws. Before handing over the property, an occupancy certificate is necessary to be obtained for a developer. It states that a particular building is ready to be occupied. It is also necessary when a developer or home buyer goes to apply for sanitation, water supply and electricity connection.
4. Request to take a physical survey of the property
A physical visit to a real estate property is always more helpful than a virtual tour. Along with checking legal documents, one must request a physical survey for a better assessment of his/her potential property. In case a buyer considers a site visit, necessary precautions must be followed due to COVID-19.
5. The real estate regulation and development act 2016
This act mandates all developers to register their projects under RERA authority. A home buyer must check whether a property is authorised as per the guidelines of the act. To know more, sign up to the web portal of RERA and check the credibility of your developer before investing your hard-earned money in a real estate property in Kolkata.
This online portal offers insights into the reputation of a particular developer helping a buyer to make a sound decision. While taking help from a broker make sure he/she is registered under the RERA act as well. It will be wise not to trust a broker who deals with your property in Kolkata without the RERA registration ID.
What not to do:
Tips to invest securely in your dream property in Kolkata
- Gather necessary information before you sign on any document of a real estate property in Kolkata.
- Stay at a secure distance from any illegal monetary transactions.
- Do not believe or agree on terms that offer tax discounts.
- RERA Id and property registration are the two most important aspects to verify before buying a property in Kolkata, even if the real estate agent is recommended by your peers.
- The chances of forgery increases when someone tries to sell property on someone else’s behalf. Try not to take that path while investing in a real estate property in Kolkata or across the country.
A home that brings security and peace of mind
Buying own flat or home is one of the biggest decision of your life. So, before putting your hard earned money into a real estate property in Kolkata, extensive research on the competitive costs, home loan interest rates, taxes, monthly income and EMI, security and maintenance expenditure is necessary. As a huge fund is required, think multiple times before you buy a property in Kolkata. Consult a financial advisor from your bank for availing better offers on home loans.
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Buying a real estate property in Kolkata is not just a matter of future security or investment. Owning a house in the heart of the city is a dream for many. That is why checking all the necessary details, legal paperwork before you sign up for this plan. Make sure to stay associated with trustworthy people yet never forget to cross check their credibility now and then while you go through the legal checklist.
The words Real Estate Investment can’t just be used in a passing conversation. Nor, does it sound like something people would deliberately want to chat about. It comes with a sense of load that none of us is willingly to take.
However, be assured it isn’t as daunting as it sounds. By the end of this reading, you will know what is real estate investing and how to invest in it.
It is said that the rate of property appreciation is on a rise, that is beneficial is you are looking at refurbish, reselling or renting. And if you are not, PropShala lists the most lucrative opportunities out of all Real Estate Properties in Kolkata for you to choose from.
Sound decision making will help you invest in what is best for your requirements. You can find all the required information pertaining to a property in Kolkata on our listings, however, to double-check follow the below-mentioned process and invest in what is best for you!
Why Invest in Real Estate-
Extra earnings in the form of Rental Income- Would you ever say no to an opportunity to increase your earnings ethically? Property value increases over time so the value you rent it out for will be more than what you had invested initially. The difference is your extra earnings.
- Value appreciation and profitability- Value of land and property tends to increase over time and with a good investment the scope to profit increases.
- Tax Benefits- Numerous tax benefits and deductions are provided by the government for you to cope with during Real Estate Investment and even after that.
- Leverage- You get the house upon paying a certain percentage of the entire amount, called the down payment. The life of payment thereafter is stretched and you get that benefit along with getting a house.
- A home to call your own!
How to invest in Real Estate Properties in Kolkata-
- Identity where you stand financially- It is a one-time costly investment so you don’t just have to know your current affordability but also analyse where you might stand in the future. Make sure you have a good credit score or works towards upscaling it. More customer-friendly lending processes and government benefits will assist you here.
- Depending on step 1, choose your investment strategy- Be clear on the purpose of your purchase. Your strategy needs to be an educated pick. Evaluate all related circumstantial factors before boiling down to one. Know what is valuable for you because requirements are quite subjective.
- Property Selection- You need to perform prior research to ascertain a suitable locality for buying property. Your research must consider factors such as Price, Locality, Specifications of a property among others. Availability of transportation, amenities in the vicinity, like schools, hospitals, shops have an influence on the worth of the property and should also be considered while making investing decisions.
- Be conversant with your Agent- Know before you own. We trust the properties listed on PropShala as well as its listers, find answers for all your property-related questions.
- Create maximum utility of your investment- Value of a property appreciates with time and can you maximum returns if kept in good shape. Remember to treat it as an investment and not an expenditure.
Real Estate Investment in Kolkata is generally a lucrative venture, however, it is not always risk free. Legal hurdles and disputes are common in India.
That being said, considering the government’s motto of Housing for All and PropShala’s efforts towards getting you the best real estate property in Kolkata, we are sure you can find what you are looking for with us!