What Documents Needed to be checked before Purchasing a Property

INTRODUCTION

Buying a property is a big deal. Whether it is the person’s dream home or an investment, it’s a huge step which obviously requires careful and proper planning. But when you buy a property, it’s not just about picking the right house but also includes or considers the financial and legal aspects that are related to it.

One of the most important aspects when one purchases a property is checking all the documents that are required. These documents make sure that the individual is protected from fraud and ensures that the property is legally clear.

IMPORTANCE OF PROPERTY DOCUMENTS

1. The documents help you confirm whether the seller has the legal ownership of the property.

2. The documents make sure that the property is not involved in any sort of legal or financial issue.

3. The documents ensure that one purchasing the property does not face any issue in the future when selling the property in the future or while making changes to it.

ESSENTIAL DOCUMENTS THAT NEEDED TO BE CHECKED

SALE DEED: This document is the most important document of all. Through this the ownership is officially transferred from the seller to the buyer.

It comprises of:

The purchase price that is agreed. The property related details like location, boundaries etc.

In order to make it legally valid, the sale deed must be submitted at the sub-registrar’s office within 4 months.

ENCUMBRANCE CERTIFICATE: This is used as evidence that the property is free from any financial and legal liability. For example:

Mortgages or loans taken against the property.

Court disputes or ownership claims.

The reason why it is so important is because it makes sure that the property has clear title. It protects the person from any future dispute or financial burden.

One can get the encumbrance certificate from the sub registrar’s office. It usually covers up to 30 years of the property’s history.

POSSESSION LETTER: The builder provides this document to the buyer. The document specifies the date on which the possession will be transferred to the buyer.

It is very crucial especially when buying under construction properties

Limitation: The possession letter does not prove ownership. One needs an occupancy certificate in order to legally establish ownership.

KHATA CERTIFICATE:

This is a revenue document that is issued by the local municipal authority. This includes:

Details related to property like location, size and area.

Information required to pay taxes.

The reason behind its importance is one requires this document to register the property and transfer ownership.

This is needed for utility connections like water, electricity and sewage as well.

TITLE DEED The title deed basically proves who is the legal owner of the property and the history of its ownership. It helps in preventing any dispute in the future regarding ownership.

The things to keep in mind are as follows:

One must verify that the title deed is clear and marketable, that is, free from disputes.

One must ensure that the seller has full ownership rights and has the authority to sell.

APPROVAL PLAN: In cases of under construction properties, this is issued by the local municipal authority to make sure that the building follows approved layouts and construction rules.

It’s very crucial because it verifies the legality of the construction. It protects the person from purchasing a property that violates the norms of the building.

POWER OF ATTORNEY: Power of attorney is used when an agent or a representative conducts a property transaction. This gives them the legal authority to do this on behalf of the buyer or the seller.

The document ensures that the agent is legally authorized to act on behalf of the owner. It makes sure that any fraudulent activity that involves unauthorised representatives is prevented.

COMPLETION CERTIFICATE: The document is issued after the construction of the building comes to an end by the local development authority.

It confirms that the property complies with approved plans and meets safety standards and local building codes. This document is very important to apply for utility services such as water and electricity. It is essential to obtain the occupancy certificate as well.

OCCUPANCY CERTIFICATE: Once the building or the property is deemed fit for occupation, occupancy certificate is issued by the local municipal authority.

When we talk about what all it includes, then, it confirms that the property is safe and is ready to be occupied. It also makes sure or certifies that the construction sticks to legal norms. The reason why it is so important is because it is essential or required for home loans, utility connections and renting out the property. Occupancy certificate is a must, without this, the property is considered illegal.

NO OBJECTION CERTIFICATES: One may need several NOCs depending on the property type. For ex: Fire NOC:

This ensures that the measures that are related to fire safety are in place.

Environment Clearance Certificate:

This certificate is for properties that might impact the environment.

Non-Agricultural Land Certificate: This certificate is for converting agricultural land into non agricultural use. These certificates make sure that the property is consistent with various legal and environmental standards.

SALE AND PURCHASE AGREEMENT: This agreement is a legally binding agreement between the buyer and the seller. It comprises all the terms and conditions of the sale. It consists of details related to price, payment schedule and handover date as well. This agreement makes sure that the interests of both the parties are protected. This acts as a reference for resolving disputes.

PAYMENT RECEIPTS: Payment receipt acts as an evidence that the individual has paid the seller for the property. It is essential when applying for home loans and registering the property.

ADDRESS PROOF AND IDENTITY OF THE SELLER: The buyer purchasing the property must verify the seller’s identity and address through documents like:

Aadhar Card, PAN card or passport.

Utility bills or bank statements.

This makes sure that the seller is genuine and is legally authorised to sell the property.

MORTGAGE DOCUMENTS: If an individual is using a home loan, these documents include:

Loan agreements

Sanction letters

Any collateral documents related to the property. They help streamline the loan process and make sure compliance with the bank’s requirements.

RERA COMPLIANCE: Developers must register their projects with the state RERA authority, under the RERA Act, 2016.

The things that needed to be checked are whether the property is RERA-registered and are there any complaints against the project. RERA ensures transparency and protects buyers from fraudulent developers.

CONCLUSION:

In conclusion, these documents are very crucial to ensure the property purchase is safe and legally sound. These documents are important to protect one’s investment and avoid future problems. If needed, one can consult a legal expert also to guide him through the entire process.