Documents You Must Check Before Buying A Property In India

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Buying a property is a dream for many home buyers. But, it is important to buy a home from a reputed real estate developer. Once you finalize on a property and wish to buy it, check for all the documents. All the documents should be verified by both – the buying and the selling parties.

If there is an issue related to your property in the future, documents will bail you out of trouble. A genuine real estate deal will give you complete peace of mind. But, are you aware of all the documents related to the home buying process? If not, then here are some documents you must check before buying a property.

Documents to be Checked Before Buying a Flat From the Builder

Building Plan

The building plan is an important document that needs to be checked and verified before the final purchase. Local municipal authority approves the building plan, which is also known as the site plan.It gives you a blueprint of the equipment layout, utility, and project.

The developer has to submit the sanctioned plan well in advance. The buyer of the project should ensure that the layout of the project or building is fully approved by the local authorities. This is important because an unauthorized building plan runs the risk of getting demolished in the future.

 Title Deed

The title deed document outlines the chain of ownership. It is a deed that provides a full claim of ownership over the property. You need to check if the property belongs to the respective seller if you are buying a resale property. You also need to check all the terms of the deed.

If you are a new buyer, then you might not understand the details and terms of the deed. In this case, you can contact the property dealer or an advocate to understand the details of the title deed. If the title deed is not in the name of the seller, then the property is risky to purchase.

 Occupancy Certificate (OC)

An occupancy certificate is normally issued by a local government agency once the project is completed. It is the most essential document that the developer of the property has to give to the buyer of the property.
An OC is issued after the inspection of the project, deeming it safe for the residents to stay there.

The OC reads that property is developed under the laws and approved codes.  It is only issued once the property is suitable for occupancy and there are no legal issues involved. Also, an occupancy certificate is a mandatory document while seeking a home loan from banks or financial institutions.

 Encumbrance Certificate

The encumbrance certificate is a document that is issued by the sub-registrar. It is to check if there is any kind of encumbrance on the property like added charges or mortgage. The sub-registrar generally issues the encumbrance certificate with complete details about any legal dues of the said property.

A property buyer must check if the said property is under any mortgage or loan. Encumbrance certificate also helps to ensure that property is free from any kind of legal issue or dispute over the title. In short, the certificate assures that the property has no legal liabilities or monetary issues.

Documents Required For Land Purchase

  • The Land deed is an important document for land purchase. It should have the name of the current owner and previous owners with proper details of the title.
  • A Release certificate from the bank is again an important document. In the case of a loan, it states that the loan on the land has been completely repaid.
  • The tax receipt is a document, which has to be produced by the property owner. A legal tax receipt is important for the purchase of land, failing to which the government can impose a certain penalty every month on the property buyer. The existing property owner has to complete the tax regime before selling the said land or any other property.
  • A land-use certificate is also essential in some transactions as it states that the land is completely ready for use. Land use is generally divided according to state policies. The purpose of the land use should be mentioned in the land use certificate.

Checklist Before Buying a Flat

Check the Location and Infrastructure

Before building a property, you need to choose the location of the property. The ideal location should be in close proximity to schools, colleges, and workplaces. If the property is too far from the necessities, it will affect your commute time.

As a home buyer, you also need to check the liveability factor of the locality. The infrastructure should be good and well-maintained. The area should be well-connected to different modes of transport. The presence of good health centers is also an important factor that you need to consider.

Check real estate developer’s credentials

A buyer needs to do proper research on the real estate developer. As a new home buyer, it is important to research on completed and ongoing projects by the developer. Always buy a home from a reputed real estate developer, so that you don’t land in trouble later.

Know about the credibility of the developer from local brokers. Nowadays, most real estate developers boast of special amenities and infrastructure. Don’t fall prey for such misleading information. Check the financial credibility of the developer as that’ll determine whether the project will be completed on time or not.

A Final Note

Once you seal the deal with the developer, check for all the above documents. If you don’t understand the technical part, simply consult a broker or a real estate consultant. Many experts advise that a home buyer should be aware of all the documents and laws regarding the purchase.

If as a home buyer, you are well-acquainted with the paperwork, there won’t be any issue related to property in the future. Given the relentless delays that have affected the under-construction projects, paperwork can bail you out of the situation if you have invested in any such project.

Be aware and informed regarding documents of your home purchase, so that you don’t regret it in the future.

Author: Vicinia

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