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• by admin
• 17-03-2025

5 Key Documents You’ll Need When Finalizing a Property

Finalizing a property is a significant milestone in your journey toward homeownership. However, it comes with its fair share of paperwork. Understanding the essential documents required during this process can save you from legal complications and ensure a smooth transaction.

In this guide, we’ll cover the five key documents you’ll need when buying a property, so you can proceed with confidence.

1. Sale Deed

The sale deed is one of the most critical documents in any property transaction. It serves as legal proof of the property’s ownership transfer from the seller to the buyer.

What to Look For:

• Ensure the sale deed is registered with the local sub-registrar’s office.

• Verify the terms and conditions mentioned align with your agreement with the seller.

Why It’s Important:

Without a registered sale deed, the ownership transfer is not legally valid, leaving room for disputes.

2. Title Deed

The title deed establishes the seller's legal ownership of the property. It ensures that the property is free from disputes, liens, or burdens.

What to Look For:

• Verify the chain of ownership in the title deed to ensure a clear title.

• Check for any pending legal issues or mortgages associated with the property.

Why It’s Important:

A clear title ensures that you are buying a property with no hidden legal complications.

3. Encumbrance Certificate (EC)

An encumbrance certificate is proof that the property is free from financial or legal liabilities, such as loans or disputes.

What to Look For:

• Obtain the EC from the sub-registrar’s office for the specified property.

• Ensure there are no encumbrances for at least the past 13–15 years.

Why It’s Important:

The EC guarantees that the property is not under any claims that might hinder your ownership.

4. Approved Building Plan

For under-construction or newly constructed properties, an approved building plan is essential. It confirms that the construction complies with local municipal regulations and has been approved by the competent authorities.

What to Look For:

• Ensure the building plan matches the property layout.

• Verify the plan is stamped and approved by the local governing body.

Why It’s Important:

An unapproved building can lead to legal issues or even demolition by authorities.

5. Property Tax Receipts

Property tax receipts validate that the seller has paid all property taxes up to the date of sale.

What to Look For:

• Check the most recent property tax receipts.

• Verify the name on the receipts matches the seller’s name.

Why It’s Important:

Outstanding taxes can become your liability after purchasing the property.

Final Thoughts

Buying a property is a significant investment, and ensuring that all the required documents are in place is vital for a hassle-free purchase. Documents like the sale deed, title deed, encumbrance certificate, approved building plan, and property tax receipts are non-negotiable for securing your ownership rights.

By being thorough with your documentation, you can avoid legal disputes and enjoy your new property with peace of mind.