If you don’t look acutely into the many important documents necessary for buying property, you could end up in legal battles stretching across long periods of time. You must identify the essential documents, and thoroughly check each one of them. Here are eight documents that top any such list:
1. Title Deed
The title deed proves the seller’s legal right on the property in question, and spells out their rights to sell or rent the property. It also shows whether the property has multiple owners. If it does, you will need to obtain NOCs from all of the co-owners.
2. NOC or Clearing Certificate
A no-objection certificate (NOC) or clearing certificate from all the owners of the property is necessary to avoid legal conflicts in the future. If the property belongs to a housing society, you need to get a NOC from the society before investing in it.
Authorities like the local electricity board, the water board, the municipality, sewage board, income tax department, and the environmental board need to approve of the property by issuing a no-objection certificate, as well.
3. Sale Deed
The only certificate documenting the actual property transaction is the sale deed. It is advisable to check the previous sale deed of the property, as it can be considered an authentic proof of the transaction between the previous owner of the property and the current owner, from whom you will be buying the property.
4. Mother Deed
The mother deed of any property contains the list of all the previous owners of the property. It also contains ownership information of the land before the construction of the property. Also known as the parent deed, it has information regarding the change in property ownership through an instrument like sale, gift, inheritance, or partition.
5. Building Plan Approval
Once the building plans have been drafted, it is preferred that you get them approved by the urban development authority in charge of your city, so as to ensure that it meets the accepted standards. Without this stamp of approval, the property can easily be deemed as unauthorized and illegal.
6. Latest Tax Receipt
Check whether there are any pending property tax dues on the property that you’re going to buy. To ensure that the tax has been paid, you should ask the seller for the latest tax receipt issued by the local municipality.
7. Encumbrance Certificate
An encumbrance certificate certifies that the property is free of legal disputes. One of the more important documents, you’ll need it to apply for a home loan. To obtain the document, you will need to apply for it at the office of the local sub-registrar.
8. Completion Certificate
After the construction of the property, the municipal authorities do a thorough check to see if the property is built in compliance with the approved plans and the building construction bylaws. If the property is approved, the completion certificate is issued.
This blog is a snapshot of what you as a property buyer must know and verify for you to remain safe with your property purchase. For a deeper understanding, please read detailed information at an authorized government portal.