The Complete List Of Documents Required While Purchasing A Home In India
- Housing - Legal
- September 11, 2022
Buying a house is a momentous occasion and a dream come true for many home buyers. However, purchasing the house involves more than signing a few documents put in front of you. In order to gain ownership of a new home or property, you need to understand and verify the documents you’ll end up signing.
Ascertaining the authenticity of these documents will help ensure that the property you are purchasing is legitimate. Verifying these documents will help you feel secure about your house purchase.
Listed below are 14 essential documents you’ll need to verify while purchasing a home in India. You need to request these documents from the builder or seller to prove their right to sell the home you are interested in purchasing.
1. Title Deed:
A title deed is an essential document which establishes legal title or the ownership of a property. A builder or seller owning a title deed gives them the authority to sell the property. A title deed helps separate genuine property and home sellers from the fraudsters who stand to benefit from your sufferance.
2. Title Verification and Search Report:
A title verification process focuses on verifying the legal ownership of a property. It also determines if there are any defects in the title of the property. After the title verification process is completed, a search report is generated detailing information such as the area of the property, location, ownership, deeds, and other verified and supporting documents.
3. Sale Deed:
A Sales Deed is a crucial legal document that offers evidence of the sale and transfer of a property from builder to buyer, which in this case will be you. It is a document that is executed before a sales agreement, and after the terms and conditions of the detailed sales agreement have been fulfilled.
4. Commencement Certificate / Occupancy Certificate:
The Commencement Certificate, also known as the occupancy certificate, indicates that upon completion of construction the building was inspected. It ensures that the constructed building adheres to municipal corporation laws or the laws of the local development authority. This document is required for getting access to utilities such as electricity and water supply.
5. Share Certificate:
The Share Certificate is an important document issued by the Housing Society management or the building management where you will be buying a house. The certificate lists the names of all the previous property owners. It is necessary to update the share certificate with your name on it.
6. No Objection Certificate:
No objection certificate (NOC) is necessary if you are looking to purchase a resale property. This is where you can ask the seller for NOC from authorities & the municipality. It helps you check whether all the utilities and amenities, such as electricity, gas connection, water supply, and sanitisation dues have been cleared. In the case of resale property, you’ll have to ensure that the home you’re buying is not against any outstanding loan. In order to verify this, you’ll require a NOC from a bank confirming the details of the outstanding loan.
7. Possession Certificate/Letter:
A Possession Certificate or letter is a document issued by the builder or seller to the first owner of the house detailing the date on which the buyers got possession of the property. However, a possession letter alone isn’t proof that you own a property or house. To claim ownership, you’ll need a completion certificate, which is typically issued prior to the possession certificate. It will not be re-issued for resale home buyers, but new buyers can obtain the original possession certificate from the previous owners.
8. Allotment Letter:
An allotment letter is particularly crucial if the home you intend on buying is under construction. The allotment letter includes details such as flat payment or additional payment for extra facilities or amenities. It is required for buyers who intend on getting a bank loan.
9. Encumbrance Certificate:
An Encumbrance Certificate is a crucial document that can be obtained from the registrar’s office where the property was registered. It offers proof that the property has legal or financial liabilities.
10. Khata Certificate:
The Khata certificate is a distinct document that acts as proof that the construction is as per local laws, regulations, and authorized plans. It is a document required while the registration of a new property or in case a property is being transferred.
11. Building Approval Plan:
The building approval plan is a sanction based on two factors: the building plan and approval of the layout. It is essential to check this document to ensure that the builder has followed the regulations of the local body acts, building bylaws, and master plan. While this may not seem like a huge concern, it can have consequences when the local authorities come for spot checks.
12. Sales and Purchase Agreement:
The sales and purchase agreement is a document that specifies terms and conditions that have been agreed upon by both the seller and buyer, which may include price negotiation.
13. Receipt of Property Tax:
Property Tax Receipt is a document that acts as an essential piece of evidence of your purchase of a home or property. The receipt mentions the property’s legal status and proof of establishment. This document can only be verified once the previous or latest owner has covered all the tax dues.
14. Power Of Attorney:
A Power Of Attorney is a document that might be needed when a person is acting as the authorized head of a property. If the property already has a power of attorney that wasn’t verified before the beginning of the construction then the construction could be halted. Typically, this document is more important to the builders. However, a buyer interested in investing in a flat under construction should also verify this information.
Ajmera Realty understands how important it is for a buyer to have ownership documents ready to establish their ownership without contention. So, we make sure our clients get all the required documents and assist them in verifying their ownership without much fuss.