Real estate deals are frequently one of the largest financial investments a person can make. Whether you are buying, selling, or renting property in Hyderabad, it is critical to understand the legal implications. Legal compliance ensures that your investment is protected, the property’s title is clear, and the transaction runs smoothly and transparently. In this blog, we’ll look at the most significant legal issues for real estate transactions in Hyderabad, as well as why you should engage with a licensed real estate company.
The Value of Due Diligence in Real Estate Transactions
Due diligence is the first step in ensuring that you are making a good investment. This process entails validating the property’s legal status, checking for encumbrances, and guaranteeing that the title is clear. For example:
Title Deed Verification: A clean title deed is required for a valid transaction. A licensed real estate company in Hyderabad may assist in ensuring that the property seller has the legal authority to transfer the property.
Land Use and Zoning Regulations: Make sure the property can be used for its intended purpose (residential, commercial, etc.).
RERA Registration: Ensures Transparency and Accountability
The Real Estate (Regulation and Development) Act (RERA) was implemented to protect homebuyers’ interests and increase openness in the real estate industry. All real estate projects, whether residential and commercial, must be licensed with RERA before they may be marketed or sold. Here’s why RERA registration is important:
Builder accountability: RERA makes builders responsible for finishing buildings on time and with the promised facilities. A licensed real estate company in Hyderabad can ensure that the property you are contemplating is RERA-registered, giving your investment credibility.
faults Liability: If any faults are discovered in the property during five years of possession, the builder is obligated to rectify them. RERA protects homebuyers against shoddy construction.
Agreement for Sale and Sale Deed
The legal process of buying property in Hyderabad includes two crucial documents:
The Agreement to Sale is the original agreement between the buyer and seller that outlines the terms and circumstances of the transaction. It comprises the sale price, payment schedule, and other crucial details.
The Sale Deed is the last document that legally transfers ownership of the property from the seller to the buyer. It must be signed on a non-judicial stamp paper with the proper value and registered with the sub-registrar office.
Both these documents should be reviewed carefully by a legal expert or a licensed real estate company to ensure all terms are fair and legal.
Stamp Duty and Registration Fees
Stamp duty and registration fees are key aspects of real estate transactions. These costs vary depending on the property’s valuation and are required by law for the legal transfer of ownership. In most cases, these costs must be paid by the buyer.
Stamp Duty: This is a state tax, and the rate is based on the market value of the property or the sale price specified in the sale deed, whichever is greater.
Registration Fee: This fee is usually a percentage of the property’s value and is due when the sale deed is registered with the sub-registrar.