Buying a home or property is also one of the largest investments in life. In order to secure your investment, as well as not to get into legal matters, it is important to ensure that you go through the essential documents to check before buying property with a builder. The comprehensive check-up will ensure the property is in good legal standing, has no outstanding disputes, and is in possession.
Key Documents Every Buyer Must Verify
- Title Deed / Mother Deed
This document verifies the legality of the ownership of the land by the builder. These property verification documents should be checked by buyers to ensure that the property is free from any disputes, has a clear and relatively marketable title, and the buyer has no doubts about the property being sold by the builder.
- Sale Deed
The Sale Deed is a legal deed that deals with the legal transfer between the builder and the landowner. It should be enrolled in the office of the local sub-registrar. The buyers should make sure that the builder has the right to sell the units in the project.
- Land Conversion Certificate (if required)
In case the project is constructed on agricultural land, a conversion certificate is also required to establish that the land has been converted to residential or commercial purposes. Such a certificate protects purchasers against disputes in land use in the future, and it is also a main part of your legal documents for property purchase.
- Encumbrance Certificate (EC)
The EC confirms that the property is not mortgaged, loaned, and claimed by any third party. It is an essential checklist to consider before making sure the property has a clean financial history.
- Approved Building Plan
This scheme, which has been approved by the municipal authority, indicates that the development abides by the zoning regulations, the floor area ratio (FAR) as well as the permissible building height. Any failure to the approved plan can result in demolition orders or punishment.
- Commencement Certificate (CC)
A certificate of commencement (CC) is an official record or document guaranteeing the opening of a construction project and serves as a formal equivalent to the commencement date in a construction contract.
- Completion Certificate (CC)
The builder will be required to receive this certificate on completion of the project from the municipal authority. It makes sure that the construction was done according to the building plan that was approved and that it satisfies all the safety requirements.
- Occupancy Certificate (OC)
An OC makes sure that the building is fully safe to be occupied. It confirms adherence to the local building standards, fire safety standards, and environmental standards. In the absence of the same, there may be no legal provision of electricity and water.
- RERA Registration Certificate
All real estate projects should be registered under RERA (Real Estate Regulatory Authority). Buyers ought to verify the registration number of the project so as to make sure that it is transparent, accountable, and delivered on time.
- No Objection Certificates (NOCs)
The contractor should acquire several NOCs with different departments, like:
- Fire department
- Environmental authority
- Water boards and electricity boards.
- Airport Authority (where applicable)
These are to be verified as part of your builder documents checklist.
- Allotment Letter
In the case of under construction, the Allotment Letter is issued after booking. It contains general information about the property, the installment schedule, and the delivery date.
- Builder-Buyer Agreement
This is a contractual legal obligation that spells out the conditions of sale, date of possession, milestones of payment, and a clause of penalty to be imposed in case of delays. The agreement between buyers should be understandable and equal.
- Payment Receipts
You should always get receipts for all payments you make to the builder. These serve as evidence of money transactions, and they are supposed to be kept in case of future reference.
- Sale Agreement
Unlike the Sale Deed, the Sale Agreement indicates property description, the overall price, mode of payment, and conditions of possession. A property lawyer has to go through it and sign it.
- Possession Letter
The document is issued when the builder transfers the unit, meaning that the buyer has officially owned the property.
- Khata Certificate / Mutation Certificate (specific to Karnataka)
For Bengaluru and Karnataka customers, the property is registered in the municipal records, and this certificate is compulsory at the time of registration, loans, and tax collection.
- Property Tax Receipts
Ensure that all the property taxes are cleared by the builder before buying the property. Any tax due can be transferred to the purchaser.
- Home Loan Approval (if applicable)
In case you are intending to take a home loan, make sure that you have a pre-approval from the reputed banks on the project. This kind of approval means that the bank has checked the legal soundness of the project.
- GST Registration & Payment Records
In the case of under-construction works of any project, ensure that the contractor is a GST-paying one and can demonstrate paying the taxes. This guarantees compliance with regulations and prevents the occurrence of the double tax.
- Independent Legal Verification
Lastly, an independent lawyer on property is highly advisable to examine all papers. The professional legal opinion is a risk mitigation undertaking that provides a safe investment.
Final Words
Buying a house is one milestone that is accompanied by risks in case due checks are not made. Checking these essential documents before buying a property would help buyers to protect themselves against fraud, procrastination, and lawsuits. Never sign any agreement without consulting a legal expert, and ensure that the project complies with all the local and national regulations.
Through the due diligence, you will have a hassle-free and easy time buying property.
