Know the Taluk before buying property in Chennai

Arvind Kandasami had bought a property in the outskirts of Chennai in the GST - NH45 area sometime back. He cross checked all the documents and got the property registered in his name in 2013.

 

When he got information that somebody was constructing on his property, he immediately took steps to counter it. Imagine his shock when his lawyer informed that he had registered his property in the wrong Taluk.

"Apparently, the said property is on the border of two Taluks and while all the neighbouring properties come under one (which is where I too had registered mine), my property and a few others, due to their location, came under a neighbouring Taluk," says Kandasami.

Though he was able to address the issue on priority and got the illegal construction removed, clearly it was a close call. If you too, are planning on buying property in the outskirts of Chennai there are several aspects one must keep in mind.

"Although prospective buyers are smart enough to check the documents and the sale validity when making a property transaction, there are several aspects they miss out," says Vaibhav Sankla, director at H&R Block, an income tax services provider firm with offices across India and abroad. "Prospective buyers need to know the geography, the registration, location and classification of the property and the area under which it falls, to ensure proper validation of ownership."

Some of the basic checks prospective buyers must watch out for:

1. Does the land come under city corporation limits?

2. If not, under which local government limit is it classified?

3. Does it come under a Taluka area? If so, which Taluk?

4. What are the land rights documents that are required for the said area?

5. Have the respective government bodies legally approved water and electricity connections?

6. What are the administrative fees, duties and taxes to be borne by the buyer?

"These aspects are essential especially if you are buying property in the outskirts of Chennai," says Nagabhushana Reddy, a property consultant who focuses on this area. "These checks need to be done irrespective of whether you are buying land or an apartment."

The other key aspect includes the Sub-division fee and getting an NOC for even government properties.

"Fees whether taxation or registration change (or are sometimes done away with altogether) frequently. Buyers need to ensure they are paying the latest amount as per rules. Also even when buying from government approved agencies, you need to insist on an NOC. Just because it has government approval, it does not mean you have the luxury to let go of the no-objection certificate," says Reddy.