Although real estate is among India’s safest investments, a lot of people still end up losing money either due to fraud, incorrect paperwork, or failed delivery by the builder. It is essential to protect your investment before you sign a check. Here are the things that really help to keep your money safe.
Verify the Title Before Anything Else
A clean title is the basis of all safe real estate transactions. Pay a rupee before you pay a rupee. Before you pay a rupee, seek assistance from a lawyer to check the chain of ownership for at least 13 to 30 years, depending on the state.
Here are things to verify when checking a title:
- The seller actually owns the property free of disputes
- There are no pending loans or mortgages against it
- No court cases or family disputes are attached to the land
- The property matches its description in official land records
This is the biggest mistake buyers make because they never realize that it is not theirs to keep.
Check RERA Registration Every Time
Since 2016, any project that is launched requires RERA registration in most of the states. This is the one check that will shield you from all of these risks.
When a builder registers the property under RERA, he/she is verifying that he/she has provided the project date, property ownership (land title), and the approved building plan to the government authority. Another way to verify a builder’s past project performance is to view their project history on the RERA portal, along with any complaints made by other buyers or delays in projects.
If there is no RERA number, don’t take it lightly; it is a serious warning sign.
Never Pay in Cash
All the money that’s invested in buying a house must come from a clear source in the bank. Cash payments don’t leave any paper trail, and they can have tax issues both ways down the road.
Make sure payments are made by check, bank transfer, or a properly documented escrow system, particularly for the token amount and any payment prior to registration.
Understand the Payment Schedule
Often builders will request that payments be made at specific stages of building, such as payment upon completion. Builders often want their money payable in stages based on the building milestones. Check against the approved building plan before accepting this schedule.
Some of the checks to be implemented here:
- Ask for photos or a site visit before releasing each construction-linked payment.
- Never pay more than the completion percentage justifies
- Keep a paper trail of every receipt and payment confirmation
Get Everything in Writing
Guarantees from any builder or agent on additional facilities, quicker possession dates, or discounts cancel out once the sales contract is signed. If a promise is important to you, make sure to have it outlined in the sales contract before you sign.
This refers to dates of possession, penalty clauses for delays, and any customization agreed upon during negotiation and which the builder agrees to.
Buy Insurance Where It Makes Sense
In India, use of title insurance is still uncommon but can be inquired about for high-value purchases. It gives you peace of mind that if there’s a dispute about the title after you’ve bought it and lived in the home, it won’t cost you a fortune to find out the truth with a lawyer’s help.
Work With People Who Verify, Not Just Sell
If you are being pressured to make a hasty investment choice, then your broker or advisor is not looking out for your best interests; they are looking out for their commissions. Engage with those who make you perform proper due diligence.
What we do at BigSauda is take our walk-throughs through ALL of these checks before anyone buys a property, since protecting your money is more important than closing quickly.
Conclusion
Patience and attention to paperwork are more valuable in real estate than speed. Your money is also safeguarded at every stage of the purchase with a clean title, verified RERA, traceable payments, and written agreements. Take it easy at the beginning, and the remainder of the deal will be very safe.
