Documents That Need to be Verified Before a Property Purchase?
There are many things that a buyer has to check through before going ahead with a property purchase. Among those, one crucial task is document verification.
The available documents help in understanding whether the property has been constructed as per the rules and regulations. Legal documents also help in making the transfer process lawfully binding.
In this article, we will outline thirteen such documents that need to be verified before a property purchase.
Documents that need to be understood thoroughly before committing to a property purchase.
The Sale Deed
The sale deed is a legal document that serves as a proof of purchase. It essentially contains the details regarding the sale and the subsequent transfer of the property from the seller to the buyer.
The sale deed is finalised prior to the sale agreement. After drafting this deed, both the parties declare their agreement to the terms and conditions drawn in the sale agreement.
This document is also necessary if you want to sell your property after a few years.
The Mother Deed
The mother deed is a document that helps in identifying the property’s ownership history. This document comes in handy for home loan borrowers. Bankers often ask for the mother deed to be presented while applying for a property loan.
The local authorities usually can extend their help in the creation of this legal document.
The Sale Agreement
This legal agreement declares that both the seller and buyer explicitly acknowledge and admit to the terms and conditions. These terms and conditions are related to the transfer of the property from the seller to the buyer.
This document contains the following details-
Property possession date
Terms and conditions of the transfer process
Amount payment plan
An original copy of the Sales Agreement has to be produced to avail a home loan and to finish the acquisition process.
The Building Approval Plan/ Certificate
Under the Local Body Acts and Building Bylaws, the builder has to acquire certain sanctions to commence the construction. The whole sanction ordeal has two aspects to it, namely-
The Building Plan
The buyer has to thoroughly check whether the seller or the builder has successfully met all the terms and conditions mentioned in the sanctions. If the conditions have not been met, local authorities might take some action against the property or its owner. Therefore, this document is very essential and important.
The Possession Letter
The Possession Letter mentions the date from which the property would be classified as the buyer’s possession. The document is drafted under the seller’s/ builder’s name. This is done after the Completion Certificate is received by the buyer.
However, this document does not serve as a proof of the property’s ownership.
The Completion/ Occupancy Certificate
The Completion Certificate, also known as the Occupancy Certificate, is issued by the local government bodies like the municipality officers. The documents states two things-
The building has been inspected by officials after its construction.
The building has been constructed as per the required laws.
This document plays a crucial role. As amenities like water supply, drainage system, and electrical supply require it for their operations.
If the property does not have a Completion Certificate, then the construction upon inspection would be declared illegal. This can lead to the occupants being evicted or legally approached to pay some penalty.
In the situations where the builder fails to submit this document, the buyer can contact the local development authority for the same.
The Khata Certificate
The Khata Certificate is important for filing for and paying property taxes. It has all the details of the property, like-
The size of the property,
The plot it has been built upon,
The location of the property, etc.
This document also serves as identification proof. It is required by the bank while availing for a home loan. It is used as a documented proof of the property being in the local government records.
The Khata Certificate is also required to access utilities like water supply and electricity.
The Allotment Letter
An Allotment Letter is an important document for when you are buying a property that is still under construction. It contains-
All the required details of the payment with respect to the property
Clauses regarding any additional payments for amenities or such
Banks require home loan borrowers to submit this Allotment Letter for loan approval. This is because the letter includes the amount that the buyer has to pay to the seller.
However, it should be noted that the Allotment letter is not a substitute for the Sale Agreement.
The Encumbrance Certificate
The Encumbrance Certificate helps in identifying whether the seller has fulfilled all the necessary dues on the property or not. This document is proof that all the required financial and legal liabilities have been carried out diligently.
The document also includes the previous transactions of the building/ property.
The document can be obtained from the office of the sub-registrar (where the property has been registered). The property would be issued with a Form 16 if there are no dues on it. It would receive a Form 15 if there are any dues registered.
The Mutation Register Certificate
The Mutation Register Certificate proves the identity of the property’s owner in the records of the government. It also includes the property’s tax liabilities.
This document is a must for when the property is in a gram panchayat jurisdiction.
No Objection Certificates (NOCs)
While constructing a housing project, the builder has to obtain around nineteen No Objection Certificates (NOCs). The number of the NOCs required depends on the local government rules and laws.
It is always a safe idea to have copies of these documents at the disposal of the buyer.
Property Tax Receipts
While making a property purchase, it is essential to know whether the previous owners have paid the necessary taxes on the property or not. For that, it is necessary that the buyer has copies of the tax receipts.
The General Power of Attorney Document
This is another document that is required by banks while availing a loan. It is a proof that the transfer process of the property is being carried out by an authorised owner.
Documents might vary depending on whether the property is under construction or has been completed. But the above mentioned documents make it to the priority checklist.
Buyers are advised to carefully go through the documents required. Legal documents like the ones mentioned above serve as proof that the property has a genuine history. They also help the buyer to differentiate between real and fake sellers.
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