Buying a property is not an easy breeze along with a tremendous amount of capital it also requires thorough study and research on a property you are planning to invest in.
And any mistake made during the process can cause you a great deal of trouble. Therefore, it is essential to exercise caution and check all property-related documents before signing on the dotted line.
At the time of making a transaction to buy a property, it is extremely consequential to take notice of the location, surroundings, and most importantly, the legal documents of the property to avoid later inconvenience.
It’s out of the question to overlook anything as even the slightest mistake can cost you heavily in the future. There are numerous documents that require to be signed and each document is remarkable and preserves the rights of your ownership. Hence, peruse each document thoroughly and understand their notability in the home buying process.
Here are some crucial documents that you will need to buy a property in India.
- Title deed:- It is one of the most worthy and prominent documents that record the transfer of ownership of a property. In the context of real estate, having a ‘title’ refers to having a bundle of rights that arise from the lawful owner of the property. There is a possibility of the title being defective, this can definitely happen. There may be various reasons backing an imperfect title over the property, such as past- ownership claims and existing liens or mortgages on the property. A title deed is of utmost importance that gives the owner evidence of his hold over a property. You can obtain a title deed from your local urban development authority. To ensure that your title is clear of defects, do a ‘title search on the registration websites of government websites.
- Kind of property:- Knowing what kind of property you are investing in is better in the first place if the property is freehold, leasehold, or a government accommodation. Freehold property means that you own the land on which the property is built. However, a leasehold property is where you have the right to live in a property for a set forth period of time. In the majority of cases, freehold property is the better option.
- Land measurement:- It is a prudent step to get the land size measured before registering property in your name. Look out for measurement figures in the property documents and confirm the measurements by involving a surveyor in the process.
- Tax receipt and bill:- A property tax is an annual charge imposed by the government on property owners. It is a huge liability; hence ensure that the seller has cleared all the property tax bills in the past and has a receipt for the same the same
- Encumbrance certificate:- Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is essential that during your home search you consider properties that are free of encumbrance of any sort?
6. No-objection certificate:- A No objection certificate (NOC) is the most crucial legal document required during the sale and purchase of a property. It is issued to certify that the property did not violate any building laws at the time of construction. In addition to that, you may also need it while availing home loan.
Conclusion:- Buying a property is a big decision but it does not have to be complicated. This is a huge financial decision so make sure that you do it correctly. You can also hire a good real estate agent who can take you through the entire process.