Property Due Diligence - Checklist to Ensure the Construction of Your Property Meets Necessary Regulations

Explainer Sep 14, 2022

Property due diligence is the process of investigating facts related to a given property, including ownership history, and obligations or encumbrances the property may be under.

It is essential to carry out adequate due diligence of a property before you make a purchase, so as to avoid unforeseen issues - legal or otherwise after the purchase has been complete.

As part of this process, it is considered good practice to check whether the construction of your residential property meets important regulatory criteria. This article explores important checks relating to a property's construction to be considered before a purchase is made.

What Should You Check to Ensure the Construction of Your Property Meets Important Regulations?

In order to ensure the construction of the property you wish to purchase is within legal limits, the following documents should be looked into:

  • Conversion certificate: A conversion certificate allows for the use of agricultural land, for commercial or residential purposes.
  • Sanctioned building plan: The sanctioned building plan of a project or a building comprises a detailed view of the building, in addition to clearances such as NOC’s taken from the relevant authorities at the zonal and district level, and compliance with fire and environmental regulations. In case the property is a plot, the layout plan can be used instead.
  • Completion certificate: The completion certificate is a document that signifies that a building has been constructed in accordance with its approved sanctioned plan. The completion certificate is obtained before the occupancy certificate.
  • Occupation certificate: The occupation certificate acts as proof that the given property is ready to be "occupied". This document is also necessary when applying for a home loan against the property, and for obtaining connections for electricity and gas.

It is important to note that the aforementioned list follows a general overview of best practices, and is not exhaustive. There might be areas specific to your property that require deeper investigation depending on the nature of the transaction, and the location of your property.

At TEAL, we are building the next generation of property due diligence using big data analytics and machine learning. We provide reliable information about property ownership, registration status, disputes, tax compliance history and all other information that you will need to make a safe and secure property investment. To learn how TEAL can help you in your journey, get in touch with us.


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