List Of Documents Needed While Buying A Property.
When investing in a property, there are several important documents you should consider and review. These documents provide vital information about the property, its ownership, and any potential liabilities or encumbrances. Here is a list of key documents to consider:
Title Deed: This document establishes the legal ownership of the property. It contains details such as the property's boundaries, dimensions, and the owner's name.
Property Tax Receipts: Review the property tax receipts to ensure that all taxes have been paid up to date. Unpaid taxes may lead to future liabilities for the buyer.
Completion Certificate: This document is applicable for new construction projects and confirms that the building has been completed according to the approved plans and regulations.
No Objection Certificates (NOCs): Obtain NOCs from various authorities to ensure there are no objections to the property's construction or usage, including environmental, fire, water, or society NOCs.
Property Survey Report: A survey report provides information about the property's boundaries, measurements, and any encroachments or disputes related to neighboring properties.
Chain of Documents: Request a chain of documents establishing the ownership history of the property. This helps ensure that the property has been legally transferred and there are no disputes or gaps in the ownership chain.
Non-Encumbrance Certificate (NEC): This document confirms that the property is free from any legal claims, liens, or pending litigation.
Maintenance and Society Records: If the property is part of a housing society or apartment complex, review the maintenance records, society bylaws, and minutes of meetings to understand the financial health and functioning of the society.
NOCs from Relevant Authorities: Depending on the property's location and nature (e.g., agricultural land, heritage property), there may be specific NOCs required from authorities such as the local municipality, heritage committee, or agricultural department.
The Sale Deed : The sale deed is the primary document through which a seller transfers his right to the property to the buyer, who subsequently becomes the owner of the property in its entirety. The conveyance deed is another name for it. Before signing the selling deed, the buyer should double-check the seller’s title.
It is necessary to determine whether the property is subject to any charge or encumbrance and whether the purchaser is purchasing the property subject to such encumbrance. If not, the seller must return the loan and get the encumbrances removed from the property paperwork. The purchaser should check with the registrar’s office to see if the property is encumbered.
The Mother Deed : Mother deed records ownership history. Property ownership is transferred through a number of transactions. It is critical to track the ownership of a property, especially if it is being acquired, presented as a security, or used in a court dispute.
A property's ownership is determined by the mother deed. The earliest document documented should always be examined when tracing ownership. If such papers are not accessible, certified copies must be requested from the registrar's office. This procedure should not be overlooked. Papers from the past are referred to as mother or parent documents
.
Thereupon, a property typically changes hands through various means such as sale, gift, division, and inheritance. Each change in ownership must be documented using a transfer document. The order should be chronological, consistent and uninterrupted.
Any missing connection must be thoroughly examined by referring to registering office records, revenue records, and recitals in other documents, and, if feasible, by obtaining information from the persons involved. The flow should be followed.
Land-use-certificate: A land owner is legally bound to change the land use if he plans to use his land for a purpose other than what he is legally allowed. For instance, running a business activity from a property which is meant for residential use or building a house on a land parcel that is meant for farming is illegal. The authority in your area has the right to not only impose a penalty on you but also demolish the property if the conversion is not done after multiple warnings. To steer clear of all hurdles, it’s of utmost importance that a conversion certificate should be applied and received before the owner starts using his property for other purposes.
Dear Investors: Irrespective of the fact that you are the legal owner and have the land in possession, you would have to produce all documents establishing ownership over this immovable asset. Authorities concerned can refuse to entertain your request in the absence of even the most non-significant documents. This would delay the whole process and also amount to a big hassle. Ensure that all papers needed are attached along with the application for land conversion request
The Sale and Purchase Agreement : The Sale and Purchase Agreement is one of the most important documents to check. It comprises a set of terms and conditions that are agreed upon by both the buyer and the seller. The pricing of the flat is an example of this. The agreement would include the agreed-upon price of the flat by both the buyer and the seller.
The Building Approval Plan : Before starting construction, the builder must get the requisite sanctions under the terms of the Building Bylaws, Master Plan, and Local Body Acts. This authorization consists of two components:
A) The Building Plan and
B) The Layout Approval.
One general error made by first-time home buyers is failing to ensure that the builder follows the terms and conditions of the Building Plan and Layout Approval before purchasing the house. Noncompliance with the terms and conditions may result in negative consequences if the local authorities conduct spot checks, which are relatively prevalent in modern buildings. So, one cannot miss this critical document to check.
Encumbrance Certificate: An encumbrance certificate informs you of any legal procedures or outstanding loans or mortgages on the property. Obtaining the certificate serves as proof of free title and ownership.
The Possession Letter: Another document to check before buying a house in Bangalore is The Possession Letter. The Possession letter is a document created by the builder that specifies the date on which the buyers will take possession of the property.
After receipt of the Completion Certificate, this document will get generated in the builder's name. This letter, however, is not proof of property title. To do so, the house buyer must get an Occupancy Certificate.
The Completion Certificate: A Completion Certificate (or Occupancy Certificate) is a document to check that confirms that the building was inspected upon completion and that it complies with all municipal corporation or local development authority requirements. This document must be checked carefully, as this paperwork is required to obtain services such as water, power, and drainage.
It is not encouraged for first-time home buyers to buy a property without a Completion Certificate because the building is judged illegal, and without it can result in a penalty or even eviction. If the builder fails to obtain a Completion Certificate, the buyer may visit the municipal corporation and request one.
The Khata Certificate: Khata are revenue documents to check containing details about a property, such as its size, location, and area on which it is built, to pay property taxes. Also, it is required when applying for a housing loan as identification. To apply for electricity and water service, the Khata Certificate must get included in the home-buying process.
The Allotment Letter: If you want to book an under-construction property, you must have an allotment Letter as the main document to check. You will find all information regarding the payment of the flat, as well as any additional fees for any extra facilities you may need to pay. This document to check carefully before buying property in Bangalore. This letter is critical when applying for a bank loan, it mentions the amount that the buyer needs to pay.
No Objection Certificate (NOC): No objection certification gets issued by several civic bodies such as safety, power, and water and an important document to check. It is illegal to sell a house or property without obtaining a NOC. Check that your builder has issued the No objection certificate before making any payments on the property.
Approval from BIAPPA/BDA: A building plan must get approved by the BDA (Bangalore Development Authority), BBMP (Bruhat Bengaluru Mahanagara Palike), BMRDA (Bangalore Metropolitan Region Development Authority), or BIAPPA (Bangalore International Airport Area Planning Authority). The construction is prohibited until this approval is in place. The jurisdictional Commissioner or an officer authorized by such Commissioner may approve the building's authorization. For the right document to check, see if they got approval from BIAPPA.
It's important to consult with a qualified real estate attorney or property consultant who can help you review these documents and ensure the property's legality, clear title, and absence of any encumbrances or disputes.
