Clearly, there are many more than just 12 questions an investor should ask about commercial projects for sale in Noida before buying it. Contingent upon the nature of the property, its age and location and its intended use, there is a long list of detailed information and specifics that as an investor you should know in advance.
Hence, here in this article we are listing down the very common yet very important 12 questions that needs to be asked and answered before closing the deal.
1) Is the property having clear title – An Encumbrance and Ownership report can be easily and rapidly obtained before putting an offer to buy a property. While performing the due diligence, the buyer should ask for a full title report with all-inclusive details on all encumbrances against the property.
2) Does the Parent document is in sync with the described property lines – Parent document isa vital legal document that tracks down the antecedent ownership of the property right from its first owner. Make sure the document is complete in all terms and verified by the authorities.
3) Is there a road access to property – It is important that the property is approachable and there is a genuine road around the property. If there is no road access to the property then you may face huge issues when you initiate your business operations or try to lease out the property to others.
4) Does the zoning permit your proposed use of the property – It is extremely important to ensure from the local authorities regarding the zoning code and if the authorities permit your intended use of the property. Rezoning a property is allowed in some cases but not all and also it is tedious job that involves a lot of time and efforts.
5) Are there any environmental concerns – Again, an important aspect of property purchase, the property must be safe and there should not be any likelihood of contamination that could affect the health of its inhabitants today or in years to come.
6) Are there expired permits, easement obligations, unpaid municipal charges, code enforcement liens that may cause future problems for you as an owner of the property – There are various documents and payment receipts that must be available with the seller or developer and any discrepancies in these mean problems for the buyer. A few such documents include – sale deed, mother deed, building approval plan, khata certificate, encumbrance certificate, receipt of betterment charges, receipt of tax payments, stamp duty, etc.
7) Are there any physical issues with the property structure – Structural or physical issues include – roof, elevator, plumbing, electrical, fire sprinklers, HVAC, etc. It is vital to get first hand information and documents related to the inspection of these.
8) Are there any tenants (For old and working property) – If you are buying property for personal use and the property has tenants with pending lease time, or paid a deposit or rents for months in advance, then it could be a problem.
9) Is there an itemized financial record of the property – Again, there has to be financial documents and receipts starting from the first ownership of the property. Thiswill ensure accuracy in accounting. The recent property tax payments will be helpful in making income projections.
10) Is there a flexible exit plan – what if you need the money you invested in the property? It is important to invest in a property that is attractive and has a long list of pros, so when needed it can be sold for a top price.
11) Does the property in consideration fit your investment goals – The investors must ask two questions before inking down the paper – a) how well the property suit their needs and b) what place the property will take in their investment portfolio? Answer these two questions before buying a property, as not every great looking property is a good investment.
12) What are the risks involved – Sure things are the real estate investment’s best friends. Make sure the documents are asset-backed and robust. Always keep in mind the worst-case scenario and make sure you work on them and convert it into positive aspects.
Even most seasoned property investors will keep track of things mentioned above when purchasing a property. Without dedicated research about the property, investment can be a costly mistake. So be attentive and never forget to ask the above list of questions from the seller or the developer.