Documents Required For
Buying Property
Planning to BUY A PROPERTY? Well, get ready for
a major paperwork as the process involves providing (to authorities and the
bank in case you are taking a home loan) and acquiring several documents (this
ensures your ownership over the property).
Here is
a list of 14 documents that are required for buying a property:
1.
Sale Deed..!
This is
the most important piece of paper required for property purchase.
SALE DEED has to be produced in original as it
establishes the ownership of title of the property.
You need to register the sale DEED in
the Sub- Registrar’s Office of the area where the property is located.
2.
Khata certificate / Extracts..!
Khata
certificate or extract is known by different names in different states and is
an important document for the REGISTRATION of a new property. It is also required
if you want to transfer the ownership of the property at a later stage.
This document is a proof that
the property has an entry in the local municipal records and the construction
has been done according to an approved plan. Banks ask for this paper before
granting you a home loan.
3.
Mutation Register Extract..!
This
specific document is for Gram Panchayat properties and provides the details of
previous ownership.
Though not required in
original, this is mandatory to produce if the property you are buying is in
Gram Panchayat jurisdiction.
4.
General Power Of Attorney..!
This
document is required to prove whether the sale or purchase of a particular
property is being done by an authorised person on behalf of the owner of the
property.
This has to be produced in
original for getting a housing loan.
5.
Copy Of Building Plan..!
A buyer
must acquire a copy of the building plan approved by the statutory body to
establish that the construction of the property is legal and is done according
to set rules and regulations.
6. No-Objection Certificates - NOC ..!
There
are as many as about 20 NOCs that have to be acquired by a developer from
different authorities while building a housing project.
However, the number may vary
according to specific state rules. Ask your developer to provide you the copies
of these NOCs, and keep it in your personal record.
7.
Allotment Letter..!
An
allotment letter is one of the most important documents required for getting a
home loan. It is issued by a developer or / the housing authority, stating the
description of the property and details of the amount paid by the buyer to the
developer.
Do keep in mind that an
allotment letter is not the same as an agreement of sale. An allotment letter
is issued on 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 other owners can ask for the copy of the original letter from
the seller.
8. Sale Agreement..!
This
document lists all kind of information about the property ― the terms and
conditions, the possession date, the payment plan, the specifications, the
details about the common areas and facilities, etc.
The agreement also holds
the developer responsible for the construction of the property. This document
has to be produced in original for property purchase and acquiring home loan.
9.
Possession Letter..!
This
document is provided to the buyer by the developer, and sets a date on which
the latter would grant the former the possession of the property.
The original
copy of this document has to be produced for getting a home loan.
10.
Payment Receipts..!
Collect
original payment receipts from the developer if you are buying a new property.
If you are buying a resale
property, ask for a copy of receipts from the seller to be produced to the
bank.
11.
Property Tax Receipts..!
Property
owners have to pay taxes. Ensure that the previous occupier/owner had paid
property taxes and there are no pending due.
Property tax receipts also help in
proving the legal status of the property.
12.
Encumbrance Certificate..!
An ENCUMBRANCE CERTIFICATE is required to prove that the property
does not have any pending legal dues or mortgages. This is one of the key
documents banks ask for before they grant you a loan.
This certificate also has
all the details related to the transactions happened over a period of time.
In
India, a Form 15 is issued if a property has any encumbrance registered;
otherwise, a Form 16 will be given to the owner, stating there are no
encumbrances.
13.
Completion Certificate..!
This
document is required for getting a home loan.
This paper establishes the fact
that the building is constructed according to an approved plan.
14.
Occupancy Certificate..!
An
occupancy certificate is issued by the local authority to the developer to
establish the building is finally ready to be occupied and the construction has
been done according to a sanctioned plan.
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