Buying a home or property is one of the biggest financial commitments in life. To protect your investment and avoid legal hassles, it is crucial to cross-check every document provided by the builder. A thorough verification ensures that the property is legally sound, free from disputes, and ready for possession.
Here’s a detailed checklist of documents every buyer must review before finalizing a deal with a builder:
1. Title Deed / Mother Deed
This document confirms the builder’s legal ownership of the land. Buyers should verify that the title is clear, marketable, and free from disputes, ensuring that the builder has undisputed rights to develop and sell the property.
2. Sale Deed
The Sale Deed establishes the legal transfer of ownership between the landowner and the builder. It must be registered with the local sub-registrar office. Buyers must ensure that the builder is authorized to sell units within the project.
3. Land Conversion Certificate (if required)
If the project is developed on agricultural land, a conversion certificate is mandatory to confirm its change to residential or commercial use. This certificate safeguards buyers from future land-use disputes.
4. Encumbrance Certificate (EC)
The EC certifies that the property is free from mortgages, loans, or third-party claims. It is a must-check document to ensure the property has a clean financial history.
5. Approved Building Plan
This plan, sanctioned by the municipal authority, proves that the construction follows zoning rules, floor area ratio (FAR), and permissible building height. Any deviation from the approved plan may lead to demolition orders or penalties.
6. Commencement Certificate (CC)
Issued by local authorities, this certificate permits the builder to begin construction. It is provided only after verifying that all legal and technical requirements have been met.
7. Completion Certificate (CC)
On project completion, the builder must obtain this certificate from the municipal authority. It ensures that the construction was carried out as per the approved building plan and meets all safety standards.
8. Occupancy Certificate (OC)
An OC certifies that the building is safe to occupy. It verifies compliance with local building codes, fire safety norms, and environmental guidelines. Without this, electricity and water connections may not be legally provided.
9. RERA Registration Certificate
Every real estate project must be registered under RERA (Real Estate Regulatory Authority). Buyers should check the project’s registration number to ensure transparency, accountability, and timely delivery.
10. No Objection Certificates (NOCs)
The builder must obtain multiple NOCs from relevant departments such as:
- Fire department
- Environmental authority
- Water and electricity boards
- Airport Authority (if applicable)
11. Allotment Letter
For under-construction units, the Allotment Letter is issued after booking. It includes property details, payment schedule, and delivery timeline.
12. Builder-Buyer Agreement
This legally binding contract defines the terms of sale, possession date, payment milestones, and penalty clauses in case of delays. Buyers should ensure that the agreement is clear and balanced.
13. Payment Receipts
Always collect receipts for all payments made to the builder. These act as proof of financial transactions and should be preserved for future reference.
14. Sale Agreement
Different from the Sale Deed, the Sale Agreement specifies property details, total price, payment terms, and possession conditions. It must be thoroughly reviewed by a property lawyer before signing.
15. Possession Letter
Issued when the builder hands over the unit, this document signifies official possession of the property by the buyer.
16. Khata Certificate / Mutation Certificate (specific to Karnataka)
For Bengaluru and Karnataka buyers, this certificate records the property in municipal records and is mandatory for registration, loans, and tax purposes.
17. Property Tax Receipts
Check that all property taxes are cleared by the builder before purchase. Any unpaid taxes may transfer to the buyer.
18. Home Loan Approval (if applicable)
If you plan to avail a home loan, ensure that the project is pre-approved by reputed banks. Such approvals indicate that the bank has vetted the project’s legal validity.
19. GST Registration & Payment Records
For under-construction projects, confirm that the builder is GST-compliant and provides proof of tax payments. This ensures regulatory compliance and avoids double taxation.
20. Independent Legal Verification
Finally, it is strongly recommended to have an independent property lawyer scrutinize all documents. A professional legal opinion minimizes risks and ensures a secure investment.
Final Words
Purchasing a property is a milestone, but it also comes with risks if proper checks are ignored. By verifying these essential documents, buyers can safeguard themselves from fraud, delays, and legal disputes. Always engage a legal expert before signing any agreement and make sure the project adheres to all local and national regulations.
With the right due diligence, you can enjoy a smooth and stress-free property-buying journey.
