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buying a property

What are the documents you need to check before buying a property?

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.

Sale Deed:

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:

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.

Allotment Letter:

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.

Sale Agreement:

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.

Possession Certificate:

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.

Payment Receipts:

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.

Encumbrance Certificate:

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.

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