What is Evaluate Property?
A property needs to qualify certain parameters to hold a marketable competence in the reality sector. Before you make your mind to invest on any property, it is high time to know what are the parameters based on which the property is to be evaluated. In a more generic sense ‘Evaluate Property’ shall mean the assessment to determine the risk factors involved for the property which shall help you to analyse whether it is worth investing on the property or not.
Parameters for evaluating shall be broadly based on the property Location, sale price, payment schedule, delivery of possession, all legal sanctions and requisite approvals obtained for the building and the clear marketable title of the property.
How crucial to evaluate before buying?
Herein below are some significant issues to be addressed before making payments which will benefit you in your overall property search and to determine how crucial it is to evaluate property.
(A) Legal Ownership: It is utmost essential to ascertain the person who is claiming to be the owner of the property has a clear and marketable title. Verify his title deeds and other related documents and evaluate whether this property is his self-acquired property or ancestral property or joint family property, so as to determine that there are no other legal claimant’s in the property other than him.
(B) Legalized Construction: If you are planning to buy an independent home or an apartment or villa, it is of paramount importance to see the building which is constructed is as per the sanctioned Plan. If there are deviation beyond the permissible limits, such a construction is an irregular construction which holds no sanctity in the eye of law. In addition to this, even Occupancy Certificate will not be issued for such building, which may end in creating hassles for availing loan from the nationalized bank and obtaining khatha/mutation document from the jurisdictional municipal limits.
(C) Conversion: In many states like Karnataka, Maharashtra, etc. by default all lands are agricultural lands other than the gramthana or abadi land (where village population lives). Except for agriculture purpose, permission is necessary for non-agricultural purposes like residential, industrial, commercial etc. which is known as land ‘Conversion’ i.e. changing the status of land from agriculture to non-agriculture. Once a land is converted, its primary character is changed from agricultural to non- agricultural and the land permanently loses its agricultural character. If the adequate conversion order from the competent authority is not in place you should think twice before moving ahead as non-compliance of this requirement has its dire consequences, the state government may take suo-moto action and as per the prevailing laws the land shall vest with the Government.
(D) Zoning of the Land: When the owner of the land who intends to develop his land for any purpose other than that earmarked under the approved Master Plan, then the owner has to apply for change of land use before the concerned authority for the consideration. For instance if the property is zoned other than residential in the Comprehensive Development Plan, you must ask for proper Change of land Use Order. In absence of this documents your usage of the property for residential use may be questioned.
In a Nutshell: In order to avoid future legal hassles like:
- To settle any legal dispute with the person claiming legal ownership of the property;
- To pay hefty penalty for regularizing the illegal construction
- Difficulty in obtaining khatha/mutation document due to no Occupancy Certificate;
- Difficulty in availing Loan from the nationalized bank;
- Such property bought may not be that fruitful and may turn out to be a burden in disposing off;
It is crucial to Evaluate Property before buying. Happy Searching!!
