Buying a property is one of the most significant financial and emotional investments in a person’s life. Whether you are planning to purchase a newly constructed unit or a resale property, it’s vital to make sure that the deal is legally valid, transparent, and free of hidden risks. The best way to safeguard yourself as a buyer is by asking the builder for all the necessary documents before finalizing the transaction.
In this article, we’ll explore the key documents you should demand from a builder to ensure your purchase is safe and compliant with legal requirements.
1. Title Deed / Proof of Ownership
The title deed establishes the builder’s legal ownership of the land or property and ensures that they have the authority to sell it. Always verify that the title is clear, marketable, and free from encumbrances, disputes, or claims before proceeding with the purchase.
2. Approved Building Plan
An approved building plan, sanctioned by the local municipal authority, ensures that the construction adheres to zoning regulations and building codes. Without this approval, the building may be deemed illegal, putting your investment at risk.
3. Completion Certificate / Occupancy Certificate (OC)
These documents confirm that the property has been constructed according to the approved plans and is safe for occupation. An Occupancy Certificate (OC) is especially important because, without it, you may not be able to legally occupy the property or obtain basic utilities like water and electricity.
4. RERA Registration Certificate
For properties covered under the Real Estate Regulatory Authority (RERA), the builder must provide the project’s RERA registration certificate. This assures buyers that the project complies with RERA guidelines, offering greater transparency and accountability.
5. Building Inspection Report
A building inspection report, issued by an independent authority, highlights the quality of construction and points out any hidden structural defects. It ensures that the property meets safety and quality standards, reducing future repair costs.
6. Sale Agreement / Builder-Buyer Agreement
This legally binding agreement lays down the terms of the sale, including the price, payment schedule, possession date, refund clauses, and builder’s obligations. It’s one of the most crucial documents and should be reviewed carefully before signing.
7. Payment Receipts
Always collect official payment receipts for every transaction with the builder. These act as proof of payment and protect you from disputes over financial settlements.
8. Guarantee and Warranty Certificates
Builders often provide warranties for construction quality, fittings, and fixtures. Request these documents to ensure you are covered in case of defects or damages after possession.
9. Land Use Certificate
Issued by the local municipal authority, this certificate confirms that the land has been approved for residential or commercial purposes. Without it, the legality of your property could come into question later.
10. Environmental Clearance
For projects located in environmentally sensitive areas, an environmental clearance certificate is mandatory. It ensures that the construction complies with environmental norms and regulations.
11. Legal Clearance Certificate
This document confirms that the property is free from legal disputes, pending litigation, or third-party claims. It adds an extra layer of security before you commit to the investment.
12. Property Tax Receipts
Ask for up-to-date property tax receipts to ensure there are no outstanding dues. Unpaid taxes could become a liability for the buyer after purchase.
13. No Objection Certificates (NOCs)
NOCs from relevant authorities such as the fire department, municipal corporation, and pollution control board prove that the project complies with safety and statutory requirements.
14. Builder’s Financial Stability Report
In large-scale projects, checking the builder’s financial health is a wise step. A financially unstable builder increases the risk of project delays or abandonment.
15. Possession Certificate
Once the builder hands over the property, a possession certificate is issued. It serves as proof that the ownership has officially been transferred to the buyer.
16. Construction Insurance Policy
A construction insurance policy covers damages or losses during the building phase. Reviewing this policy ensures that the property is protected until the construction is fully completed.
Final Thoughts
Buying property is not just about bricks and walls—it’s about securing your future. By demanding these essential documents from the builder, you ensure that your investment is safe, legally valid, and hassle-free. Always take the time to verify each document carefully, and when in doubt, consult a legal professional before making the purchase.
With the right due diligence, your journey from buyer to proud homeowner can be smooth, transparent, and worry-free.
