Buying a property is not a straightforward process, but consists of many steps. You can read more of it in our Checklist: Property Hunting article. In this article, we focus on the most important part of it all: Documentation. There is a rise in fraudulent cases when it comes to this aspect of real estate. Hence, one should ensure that one’s builder has provided all necessary documents, with all terms and conditions clearly laid out in them, before finalizing the deal. Here is a list of documents to be checked before buying any property:
- Title Deed: This document traces the legal owners of the property. It confirms whether the builder has full rights over the property. You can obtain it from registration offices in case the builder does not have it.
- Sale Deed: This is the only document that will prove transfer of ownership from the builder to you. It should be compulsorily registered. It comprises of the terms and conditions that you and the builder have agreed upon. Make sure the name of the property is bearing a clear title.
- Approval Plan: This document shows that the property layout is authorized by the jurisdiction commissioner or the local body in charge. A few other documents/certificates need to be submitted to get this document:
- Title Deed
- Property Assessment Extract
- Property PID number
- City/Panchayat survey sketch
- Tax receipt
- Sanction plans
- Drawings of the property
- Demand drafts
- Foundation certificate
- Land use certificate
- Tax Receipts: If you are buying a property in a resale transaction, make sure you have all the previous tax receipts. These receipts will notify you if there are any pending bills. In case the seller doesn’t have the receipts you can obtain them from the municipal body by using survey number of the property. Electricity and water bills also hold similar importance.
- Power of Attorney: The POA is a legal document that gives the authority of the house to a person (X), other than the owner. This document lets person X to mortgage, sell and demolish the property on behalf of the owner. Be extremely cautious when offering a POA, as these could be liable to misuse.
- Land Use Certificate: It is illegal to use agricultural and industrial land for residential purposes. The Tahsildar office and land regulatory will provide with a NOC in cases where the land use has been converted. The conversion certificate is given to agricultural lands so that they can be used for residential properties.
- Encumbrance Certificate: EC verifies that the property is free of any legal dues. It consist of registered transactions made in the name of the property before the EC is registered.
- Completion certificate: The CC is a vital and mandatory legal document that a is given once the property is completed. It states that the building has been constructed in compliance with rules and according to official plans.
- Occupancy Certificate: In simple terms this certificate states that property is ready to be occupied. This will be given once the local authorities perform a check on the property.