NRI and PIOs who are thinking of buying property in India should first and foremost discover the purpose of such a purchase. Determine whether you want to live there? Or you wish to have a place in India for short-term visits that you and your friends can use. Is this for a parent? Or is this strictly for investment prospects. Your answers to issues like these will help you get a fair picture of what you intend to accomplish and help you determine where and what to buy. Either way, location is a powerful factor when it comes to buying real estate in India or anywhere in the world. Here are a few tips to consider when buying property in India

1. The property should have a clear title, check with the office of the Sub Registrar
2. Insist on a completion certificate (cc) and a map with the sale deed
3. If purchasing land. Establish how the land was obtained by the seller
4. Before buying vacant land, a copy of plan approval from the local authorities should be collected. The seller should be able to give this. It is up to you to verify these documents
5. Zoning was not a difficulty several years back. However, things have changed now a lot. Don’t buy household property for commercial use unless the plans are approved. It is common for the municipal authorities to demolish buildings after they have been built and sometimes years after they have been developed
6. Be very cautious when buying a property from sellers who possess a power of attorney status to sell the property. Individually I would NOT recommend buying such property. Ensure that title is clear and the owner is the one selling the property, and there are no legal disputes for ownership of the property.
7. Get Sale Deed registered as per Registration Act 1908.
8. When purchasing re-sale properties, don’t rush to close the deal if the value is too low as per market standard. Make proper inquiries. Ensure that the property is developed legally and abides by all building codes and laws of the municipality and the state.
9. When purchasing a new property from the developer, it is important that the builder’s reputation is checked. Previous developments, whether delivery, is on time etc. are things that can tell you a lot about a builder’s reputation in India. Even your bank in India should be able to provide information about new housing complexes. If banks are reluctant in approving loans for a project, this should be a red flag.
10. When buying from developers, get everything in writing. Read the agreement carefully and delete what you don’t like. Several builders print great brochures but many times don’t provide all those facilities that they mention initially. Sometimes they even increase the value after you buy, as they may have some clause in the legal paperwork that you signed that allows them to do so. Review and recheck sale agreement before buying property in India.
11. Maintenance charges is a huge problem these days in India. Some developers will take a one-time maintenance charge and say the monthly maintenance will be paid from the interest of the invested money. Turns out at a succeeding date that they still demand more monthly charges for maintenance.
12. Don’t pay cash for any property purchase. Make payments only through legal banking channels. This will help you avoid problems and even repatriate your money when you decide to sell your property in India.