Property buying can often be complex. Even the absence of a particular document could cause a burden for the homebuyer in the future. Therefore it is extremely important to check all the necessary documents before purchasing a property. Check this manual for all the necessary documents before purchasing a property.
Copy of Building Plan:
A buyer must accumulate a duplicate of the building plan authorized by the statutory body to establish that the construction of the property is legal and is executed according to set guidelines and regulations.
This is the most essential piece of paper required for property purchase. The sale deed must be produced in original as it records the transfer of ownership from the seller to the buyer. You need to register the sale deed in the Sub- Registrar’s Office of the area where the property is located.
Khata certificate is an important document for the registration of a new property. It is also required in case you need to transfer the ownership of the property at a later stage. This document is proof that the property has access to the local municipal records and the development has been done according to an authorized plan.
No-Objection Certificates (NOC):
No objection certificate is delivered by several establishments like safety, electricity, water, etc. It is illegal to promote a house/property without acquiring a NOC. Before you’re making any payment towards the property, make sure that your builder has produced the No objection certificate.
It’s a most important document that will have to be signed by the builder. This could be done after the advance has been made on the land purchase.
It is issued through a developer or the housing authority, mentioning the description of the property and information of the amount paid by the buyer to the developer. Do keep in mind that an allotment letter is not similar to a settlement of sale. An allotment letter is issued at the letterhead of the authority while a sale agreement is documented on a stamp paper. Moreover, an allotment letter is issued to the first owner and different owners can ask for a duplicate of the original letter from the seller.
This document lists all types of information about the property ― the terms and conditions, the possession date, the payment plan, the specifications, the details about the facilities, etc. The agreement also holds the developer liable for the construction of the property. This document needs to be produced in original for property purchase and obtaining a domestic loan.
General Power of Attorney:
A power of attorney is a legal procedure used to give authority to another person by the property owner on his/her behalf. One can give a General Power of Attorney to transfer one’s rights over one’s property.
This is one of the most important documents that will be given to you after you have obtained the sale deed. In different words, this is a certificate that validates the possession of assets after the individual has physically taken over the property.
Collect original payment receipts from the developer in case you are buying a brand new property. If you’re buying a resale property, ask for a duplicate of receipts from the seller to be produced to the bank.
Property Tax Receipts:
Property owners must pay taxes. Ensure that the previous owner had paid property taxes and there aren’t any pending due. Property tax receipts additionally help you in proving the legal status of the property.
An encumbrance certificate is needed to show that the assets are free from any legal or monetary dues. This is one of the key documents banks ask when you availing a home loan. This certificate also has all the details related to the transactions that happened over a period of time.