Documents Needed for Buying Property

There can be more than one reasons for finding a new property. And while you are on the lookout for one, it’s important to know the documents needed to buy a flat from a builder or a house, plot or any real estate for that matter. 

Even under Government Housing Schemes in India, unless all documents to be verified before buying a plot are presented for the land or plot you are allotted, no construction takes place. Documents needed to be submitted while the house or apartment is under construction.

Even though the price and demand for properties are always hitting the roof there, people still struggle amidst the process of property selling & buying.

Common challenges during property-buying process

Buying property nowadays is not an easy task. It requires you to do a good research about the property you are planning to buy, which is inclusive of all the necessary details about the property -- like background, documents to check before buying a new flat, information about the owner, and to see if the property is not involved in any kind of dispute and more. 

In India, the laws relating to the properties are generally dealt with by the Transfer of Property Act, and the Real Estate Regulation and Development (RERA) Act, making it extremely vital for you to go through the documents to be verified before buying a plot from a builder.

Under the RERA Act, the properties need to be registered with the RERA authorities in the particular state. RERA also makes it necessary for the builders to get their projects registered and gives a quick view on your behalf on all the major documents to check before buying a flat from a builder. 

So, before you venture out to buy any property anywhere in India, it’s important that you consult a good property lawyer or a real estate lawyer near you. He/she can help you with documentation and application procedures efficiently. 

They will thoroughly assess all the documents  for you and ensure that no contractor or builder cheats you and get  you the best deals, as he/she can assist you in terms of the papers needed for an ongoing construction or a ready-to-move-in apartment.

What are the ways to make property purchase simple?

In order to avoid problems from coming up in future, always conduct a brief research of all the property documents checks before buying property or selling one in metropolitan cities or any other urban or suburban cities.

Below you can find the list of documents required before buying ownership flat or of any other property. Whether you are buying it from a builder or from some Gram Panchayat of a State, it’s advised that you consult someone for a better understanding of the following requisites:

• Title Deed: 

The Title Deed is one of the most important documents to be verified before buying a house or anything else that helps in signifying the actual ownership of it. It also states the rights and obligations of the owner along with the rights of a mortgage, if at any time required by the owner.

• Construction Clearance Certificate or Commencement Certificate:

This document is required when you are buying any ongoing construction property from a builder. Commencement Certificate is one of the important documents to check before buying a flat from a builder or land, house, etc. It states that the construction has commenced only after getting the approval, license and permission from the local authorities. 

• Building Approval Plan or Approved Layout Plan:

Approval Plan is necessary as it states that a building in which you are planning to purchase a place of residence should be approved of by the local authorities and there are no issues related to it. 

• No Objection Certificate or NOC:

The certificate of No Objection is one of the most crucial documents to check before buying a flat from a builder which is issued by the concerned local authorities stating that there are no discrepancies in the present plan and that it can be duly executed. It works as an evidence to show that the project or the building is approved by the authorities and no objections are raised with regards to the construction of it. 

• Land Use Certificate:

A land use certificate is mandatory, as it states the purpose for which the land is to be used. On the basis of the use of land, the land is also divided into three categories. 

For example, in Karnataka, there are a few areas where there are regulations for documents to check before buying agricultural land. The purpose of the land should be clearly mentioned in the Land Use Certificate, which specifies the type of land and the activities that could take place on that particular land. The papers you require in Karnataka and any other State may differ from the documentation process of other types of lands.  The very same way you cannot use commercial land for residential purpose  you cannot carry out any commercial activity on agricultural land.

• Encumbrance Certificate:

Encumbrance Certificate helps in ensuring that the property is free from any kind of dispute over its title and there is no loan or mortgage against it which the buyer is intending to buy. 

• Completion Certificate:

After completion of the project, one should make sure that documents to be verified before buying a house are complete. 

• Occupancy and Possession Certificate:

This certificate is issued by the local authorities. It is issued only after the completion of construction of the project. This ensures that the building is fit for occupation purpose and can be possessed by people who are purchasing the property.

What are the official papers to check before a purchase?

For a better understanding of the necessary official papers, let’s have a look at the documents to be verified before buying a flat, house, land, plot, etc:

• Sale Deed:

Sale deed includes all the necessary details about the buyer as well as a seller of the real-estate possession. Only when sale deed is executed can we say the sale of a possession become final.

• Mother Deed:

Also known as the parent document of a real estate, the Mother Deed of helps in knowing the actual origin of the property and act as an essential document in case of resale of property.

• Conversion Certificate:

The Conversion Certificate is issued from the competent revenue authority on the request of the revenue authority to convert the land for non-agricultural purpose. 

• Khata Certificate:

The term Khata means account. In case you are transferring property from one person to another, Khata Certificate is necessary for such transactions.

• Power of Attorney:

Through the Power of Attorney, a person appoints another person to act on their behalf. He legally authorises the appointed person by way of either General Power of Attorney or the Special Power of Attorney. 

• Tax Paid Receipts:

Apart from all necessary papers, receipts of the tax paid by the owner of the property play a vital role. The taxes that are levied on it are property tax, house tax and other taxes that are levied by the Municipality.

What are the documents required for buying a house?

The documents include- Sale Deed, Mother Deed, Building approval plan, Commencement Certificate (For under construction property), Conversion Certificate (Agricultural to Non-agricultural land), Khata Certificate and Khata Extract, Encumbrance Certifciate (EC), Betterment charges receipt, Power of Attorney(POA), Latest tax paid receipt, Completion Certificate (for a constructed property), Occupancy Certificate (for a constructed property).

How do I check if the property is legally verified?

Check for the title papers to see if it has a clear title, without any dispute. Ask for bank's approval Tally the approved plan with actual site Look out for property tax slips Encumbrance certificate Check if the project has a registered society

How long does it take from start to finish to buy a house?

It takes about 6 months to buy a house. However this varies from property to property. On an average, it could take 20-90 days to find a house, 15-30 days to receive a mortgage offer, another 20-30 days to find a solicitor and exchange contracts; then finally 10-30 days to complete and get the keys.

What are the documents required from the seller's end?

Original Land Deed of the current owner, known as the 7/12 document and also the previous owners with the proper names on the title. An Encumbrance Certificate from the Sub-registrar's office for at least the last 30 years.

How can I verify a house owner/home ownership?

Go to the County public records department (or check online). Or to the tax records office.

What documents are required for applying for a home loan/buying a resale flat?

Agreement to Sell (ATS) Chain of Title or Sale Deed NOC from the society or other concerned bodies Share Certificates in case of societues Title Report Occupancy/Completion Certificate(OC) Encumbrance Certificate(EC)

Can a builder give possession without OC?

A builder cannot allot a flat without obtaining an OC. The Law clearly states that no person shall occupy or allow any other person to occupy a building or part thereof without obtaining an OC.