Steps to be taken after Purchase

Steps to be taken after Purchase
of property

l By R.K. Jain
Purchase of immovable property comprises various steps, broadly categorized as pre-registration and post-registration activities. Post registration activities are subsequent to the registration of Sale Deed.
1. Obtain original documents of title from the seller and compare them with the copies, which the purchaser’s advocate should have scrutinized. If the advocate calls for other original documents or certified copies, ensure he gets such documents. It is always advisable to apply for additional copies of the sale deed.
2. Register the application for updated encumbrance certificate with the sub-registrar office on the day of registration itself. Such Encumbrance certificate should contain the registration details of purchaser’s sale deed.
3. Possession of property is of vital importance. Inspect the property a day ahead of registration. Make sure that the property is as per the agreement to sell. As per the terms of sale agreement, seller should hand over the vacant possession and the purchaser should receive all the keys of the property at the time of registration. In case of vacant site, please put up a display board with the wordings “this property is owned by ……….. Trespassers will be prosecuted”. Fencing of such sites, though expensive, is preferable. Periodical visits to the site are a must to detect encroachment.
The purchaser should verify that all the taxes, statutory payments in respect of the property including power, water charges are paid up-to-date.
He must collect all the paid receipts and also verify at the concerned offices. Power and water supply agencies collect deposits from the consumers. Purchaser should collect such deposit receipts from the seller.
After registration of the sale deed, the purchaser must ensure that the Katha in the records of the local bodies, gram panchayats or the city corporation is transferred to his name.
Both the seller and purchaser have to sign the application for transfer of Khata, which should be done simultaneously whole signing the sale deed. This is necessary to avoid unnecessary disputes and complications at a later deed is to be filed with the Gram Panchayat / City Municipal Office against acknowledgement.
Local bodies transfer the Khata in the name of the purchaser on collecting a transfer fee, generally 2%, on the stamp duty paid on sale deed and issue written confirmation of transfer in the name of the purchaser. While transferring the Katha, local bodies, usually reassess the property and issues assessment notice in the name of the purchaser. The tax paid receipt should be in the name of the new owner.
After the Municipal authorities transfer the Khata to the purchaser, the water meter and the power meter installed are required to be trnasferred. Verify the deposit, charges paid receipts carefully, which should be in the name of the seller. Obtain a letter from the seller addressed to the respective authorities to transfer the meters, including the deposits paid in the name of the purchaser.
The purchaser should, without delay, apply tot he power / water supply authorities to transfer the meters and the deposits in his name. The original authorization letter of the seller and a copy of the new Khata (in the name of the purchaser) are to be enclosed with the application of transfer. The authorities will issue written confirmation of transfer and raise the bills in the name of the purchaser. The payment is receipted in the name of the purchaser.
Obtain periodical Encumbrance Certificates at least once a year, which should be a routine exercise.