Buying real estate is not a very difficult task but you need to ensure that if you are spending that kind of money then the property you buy is truly legal and secure. There are many legal factors you need to keep in mind before actually buying a property for the benefit of others and yours.

What are the legal factors one needs to keep in mind?

Many documents are required from a legal point of view for buying a property. From the seller you need:

  • The original land deed
  • The encumbrance certificate
  • Property tax receipts and bills.

A buyer needs to ensure the availability of the following documents:

  • The title deed that is in the name of the buyer after transferring the ownership.
  • Receipts from payments and stamp duty charges
  • Plan approval – whatever the construction you are planning for the land, you need to get the approval beforehand for the same by a higher authority.

All the legal documents are of absolute necessity before buying and commuting the construction on the land you have bought.  The profit earned by the real estate companies and general contractor varies from one company or contractor to others. There are different ways in which they earn their profits.

  • An agreement is made estimating the total cost and the company charges the profit percent accordingly. After the completion of the house, the customer pays the commission on the cost or the amount which is decided.
  • The company sells the house to the customer and the profit is included in the cost. By this way the customer doesn’t feel cheated and that more amount is charged from them. This usually happens when one buys an apartment from real estate companies.
  • An amount is decided and a contract is made quoting the same. After the completion of the construction, the amount is paid to them. This is usually their wages. This is accepted by the contractor mostly.

Now that you know these factors make sure you apply and buy a safe and secure land for yourself!