If you are planning to buy a property, well an enormous amount of paperwork awaits you. Documentation is extremely crucial. A property with clear documentation and title commands a higher price in the market.
A prospective buyer will always first scrutinize all the documents before even looking at the property. An intelligent buyer will insist on checking the original documents before finalizing the deal.
It might be messy and you can be completely baffled by all the legalese. However, a thoughtful house seller will make it simple for you to comprehend all the essential documentation.
While purchasing a property following are the documents/mandatory papers you are supposed to ask from a house broker:-
1. 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 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.
2. Encumbrance certificate:- This serves as evidence that the property is free from legal liabilities. Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is also needed to acquire a loan from the respective bank against a property.
3. Allotment letter:– For getting a home loan is one of the most important documents. 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. One thing that needs to take notice is that the allotment letter is as same as the sale agreement. Moreover, an allotment letter is issued to the first owner and other owners can ask for a copy of the original letter from the seller.
4. 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.
5. Sale agreement:- This document records all kinds 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.
6. Possession letter:- developer issued this letter to the buyer, and set a date on which the latter would grant the former possession of the property.
7. Payment receipts:- If you are buying a new property, collect the original payment receipt from the developer and if you are buying a resale property, ask for a copy of the receipt from the seller to be produced to the bank.
8. Property tax receipts:- The owners of the property have to pay taxes as well. Ensure that the previous owners had paid property taxes and there are no pending due. This also serves as a legal status of the property.
9. Completion certificate:- It is required for getting a home loan. This paper established the fact that the building is constructed according to an approved plan.
10. Occupancy certificate:- This 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.