Groww Digest

6 Day Course

Theme: checklist before buying real estate

Dec 26, 2022 to Jan 1, 2023

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Day 1: Monday
6 Day Course | Theme: checklist before buying real estate

Real estate is going to be the most expensive

purchase nearly everybody makes in their lives.

It is important to check all the paperwork before

buying.

In this week’s course, we’ll learn about a few of

them.

Title deed: this document records the ownership

of a property. It also has a record of the
property’s history: inheritance, ownership,
transfer, etc.

A clear title is a must.

The nature of the titles can be of a few different

types. Example: freehold, leasehold, etc.

Identity of owner: before purchase, it is

absolutely necessary to research the owner and
his/her authenticity.

Page: 2
Day 2: Tuesday
6 Day Course | Theme: checklist before buying real estate

Existing loan against property: if there are

loans, check their status.

Has it been fully repaid? If not, what

arrangement is being made? Will the existing
owner pay back the full loan before selling?
Will you be paying a part of it?

Tax payment: check if there are any tax dues

pending against the property. If tax is owed,
you can ask the current owner to clear the
dues or adjust the dues in the price you are
paying.

Occupancy certificate: does the property have

an occupancy certificate? Newly constructed
properties cannot be occupied without this
certificate.

There are different authorities that issue this

certificate in different areas.

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Day 3: Wednesday
6 Day Course | Theme: checklist before buying real estate

Conversion and permits: many properties are in

zones and can only be used for designated
purposes like commercial use, residential use,
institutional use, etc.

Check the zoning rules and the ability to change

the use.

NOC: No Objection Certificate (NOC) is given by

any authority that has a say in any matter.

Depending on where the property is located,

there could be several authorities (municipality,
fire department, excise department, etc) that
need to give the property owner an NOC before
the property is used.

Find out all the NOCs needed. Then, find out

how many of the required NOCs are not
obtained already.

Some NOCs are easy to get. Some NOCs can be

difficult to obtain. Factor these before deciding
on a property purchase.

Page: 4
Day 4: Thursday
6 Day Course | Theme: checklist before buying real estate

Conversion and permits: many properties are in

zones and can only be used for designated
purposes like commercial use, residential use,
institutional use, etc.

Check the zoning rules and the ability to change

the use.

NOC: No Objection Certificate (NOC) is given by

any authority that has a say in any matter.

Depending on where the property is located,

there could be several authorities (municipality,
fire department, excise department, etc) that
need to give the property owner an NOC before
the property is used.

Find out all the NOCs needed. Then, find out

how many of the required NOCs are not
obtained already.

Some NOCs are easy to get. Some NOCs can be

difficult to obtain. Factor these before deciding
on a property purchase.

Page: 5
Day 5: Friday
6 Day Course | Theme: checklist before buying real estate

Buying a property is always a giant decision.

So far in this course, we’ve discussed some

technical things you need to check.

As with any spending, you also need to keep

in mind the other side: does the expense
make sense? Is it going to give you what you
want?

What you want could be anything — a good

place to live, a good return on investment,
and so on.

Think of all angles before proceeding.

Page: 6
Day 6: Sunday
6 Day Course | Theme: checklist before buying real estate

We’ve reached the end of this week’s course

that started on Monday.

Here’s a test you should take. Get pen and

paper!

Question 1:
Title deed records:

-Past ownership
-Name of person renting property (if any)

Question 2:
If the property has an outstanding loan
against it, the owner cannot sell the property.

-True
-False

Page: 7
Day 6: Sunday
6 Day Course | Theme: checklist before buying real estate

Question 3:
NOC stands for:

-No Occupancy Certificate

-No Objection Certificate
-Not Occupied Currently

Question 4:
Lawyers can check for pending legal cases
against a property before sale.

-True
-False

Question 5:
Occupancy Certificate is optional.

-True
-False

Page: 8
Day 6: Sunday
6 Day Course | Theme: checklist before buying real estate

Answers:

Q1: Past ownership;

Q2: False;
Q3: No Objection Certificate;
Q4: True;
Q5: False.

Page: 9
 That’s it for this week!

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See you next week!

—Groww Digest Team

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