Our Blog

Buying a commercial property is a wise investment as it can make or break your future. However, buying a commercial property isn’t about investing in the property but it may take more investment to get a business started in the property. Hence, investing in a commercial property needs a lot of considerations and lookouts.

"Buying a commercial property" is a major decision requiring research and careful planning. Unfortunately, one of the key considerations of any property transaction that is often ignored is “Legal Aspects”. However, in the following blog, we’re going to discuss the main legal points to consider while investing in commercial properties in Noida.

1. Tenure (Leasehold or Freehold) –

Knowing about the tenure for Leasehold or Freehold is the first thing that must be asked before getting into a commercial property. However, both types of tenure come with their own set of risks and rewards. Therefore, you should have proper due diligence that reveals all the potential issues such as any restrictions or obligations to the landlord.

Knowing the tenure also helps you to know if there is any financial contribution in case of the un-keep of the property. It also tells you whether the consent will be required or not. However, if you are investing in a "new commercial property in Noida" or anywhere in India, you need to make sure that you get the proper notice regarding the tenants before placing it in the open market.

2. Tenants –

Tenants are a huge factor to take into consideration especially when you’re purchasing a commercial property. One of the prime reasons for this is that the lenders are happier to land for properties that are well-tenanted with good tenants. Therefore, you must be aware of the tenants’ rights under license or lease.

It is also advisable that you are familiar with the “Landlord and Tenant Act 1954”. Moreover, you should also be familiarized with –

3. Costs –

It is advised to always get a fee estimate while buying a commercial property. The fee estimates are prepared based on the information given to you and they include –

The fee estimate is required because it helps the buyers to be prepared when it comes to investing in property. The buyers will be aware of the fact that there may be extra costs involved in the buying of commercial property and they will be sure that they can afford to cover these costs too.

The additional costs also include the hidden charges for the maintenance and operation of the property. It further includes –

However, the buyer should be aware of these hidden charges and should also get a no-objection certificate from the property seller which shows all the statutory payments and dues.

4. Deal Structure –

Considering the deal structure is also important which means if you are buying a property via an auction, then it is crucial that your lawyer reviews the auction pack and prepares a title report. The title report of the deal structure goes through the auction pack in-depth and it also highlights the salient matters that the buyers need to be aware of.

However, no matter whether you are buying through an auction or buying a property through a private sale, it is still important that you’re aware of all the issues that are concerning your property. The due diligence checks are also critical before committing to an exchange.

Some major legal considerations in deal structure are as follows –

The title of a property is a legal document that is prepared to prove the history and ownership of the property. A legal title insurance policy helps protect the buyer from any potential risks or losses that might arise from title issues.

The Approval Plan is the document that showcases the permission and approval of the relevant authorities for the design and construction of the building. For instance, to have any commercial property in Noida, you must verify that the approval plan is sanctioned by the cooperation or municipal authorities.

The approval plan complies with environmental laws, zoning regulations, and building codes. However, the commercial property buyer must have the approval plan beforehand so that they can check for any discrepancies or violations.

A sales deed is a document that is used to keep a record of the transfer of a property’s ownership from the seller to the buyer. However, you must make sure that the sales deed is executed with the presence of witnesses who are registered with the sub-registrar and the sales deed should be stamped too.

The buyer should also be aware of the taxes that would be applied to the transactions including –

Hence, before buying a commercial property in Noida, the buyer must understand the tax benefits and liabilities of owning commercial properties.

Conclusion

Buying a "commercial property in Noida"is rewarding and profitable but only if it is done with due diligence and caution. To ease your task, we have mentioned some of the main legal considerations that you must keep in mind while buying a commercial property in Noida. If you consider all the above factors then there will be no chance of facing any abnormality in the future.