What should I consider when I am buying a house or land?

One of the most critical aspects to consider when buying a land or house, is knowing whether:

The price of the property is fair 

Since land and property fall under State subjects as per the Constitution of India, laws and transactional rules vary depending on the state where the property is located. Depending on where the property is located and the nature of construction (if applicable), different states have introduced a system of determining a minimum base price for the property, called ‘circle rate’, or ‘ready reckoner rate’. These circle rates are speculative and vary greatly even within the same city- from one area to another- and are frequently updated and notified. In addition to the location-based circle rates, the value of a property is also affected by the services it has access to, and the builder/ housing society. However, these circle rates only serve as guides, and the actual price may vary based on the market value of the property, called fair market value.

The ownership of the property is free of disputes

There are various ways in which you can find out if the ownership of the property you want to purchase is disputed. The simplest way is to check the title deeds of the property in question. You can also enquire with the local tehsildar’s office or that of the village officer where the property is located. Other documents such as e-record of rights, property tax receipts, and survey documents are also used to establish ownership.