When purchasing a property in India, it's crucial to ensure that all legal aspects are thoroughly checked to avoid future complications. The process may seem complex, but understanding the key documents required can help safeguard your investment. Here's a comprehensive guide to the essential documents you need to verify before buying a property in India.
1. Title Deed
The title deed is the most important document that establishes the ownership of the property. It confirms the seller’s legal right to transfer the property to the buyer. Make sure the title is clear and marketable, which means there are no legal disputes or encumbrances associated with the property.
2. Sale Deed
A sale deed is the legal document that completes the property transaction between the buyer and the seller. It should clearly mention the transfer of ownership from the seller to the buyer, including the agreed-upon price and property description. Ensure the sale deed is registered at the sub-registrar’s office to make it legally binding.
3. Encumbrance Certificate
An Encumbrance Certificate (EC) confirms that the property is free from any financial or legal liabilities such as unpaid loans or legal disputes. This certificate is essential to verify that the property has no encumbrances during the period specified, typically for the last 13 years or more.
4. Approved Building Plan
If you're buying a constructed property, checking the approved building plan is essential. This plan is sanctioned by the local municipal authority, and it ensures that the construction follows local regulations and laws. Any deviations from the approved plan may result in fines or even demolition.
5. Commencement Certificate
For under-construction properties, you must check the Commencement Certificate, which is issued by the local municipal corporation. It certifies that the builder has received permission to start construction after complying with all legal formalities.
6. Occupancy Certificate
The Occupancy Certificate (OC) is issued by the local authority after the completion of a building, confirming that the construction meets all the prescribed building codes and regulations. It certifies that the building is suitable for occupation. This is crucial for resale and for obtaining utility connections like water and electricity.
7. RERA Registration
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), all real estate projects must be registered with the state’s RERA authority. This ensures transparency in the real estate market and provides protection to buyers. Always check the RERA registration details of the project or property you're interested in to avoid fraud or legal issues.
8. Khata Certificate
The Khata Certificate is a legal document issued by the local municipal authority that records property ownership for tax purposes. It is required for registering the property and applying for loans. Ensure the Khata Certificate is in the seller's name, and after purchase, transfer it to your name.
9. Tax Receipts
Ensure that all previous property taxes have been paid by the seller. Ask for recent property tax receipts to verify that there are no outstanding dues with the local municipal authority.
10. No Objection Certificates (NOCs)
Depending on the type of property and its location, you may need multiple No Objection Certificates (NOCs) from various authorities such as the Pollution Control Board, Environment Department, and Municipal Corporation. Ensure the builder or seller has all the necessary NOCs.
11. Power of Attorney
If you're buying a property from someone holding the Power of Attorney (POA) for the actual owner, verify the POA document carefully. Ensure that the POA is registered and gives the holder the right to sell the property on behalf of the owner.
12. Home Loan Documents (if applicable)
If you're financing the property through a home loan, ensure all necessary documents are submitted to the bank for verification. The bank will typically verify the legal and financial status of the property before approving the loan, which can serve as an additional layer of security.
Conclusion
Buying property in India involves careful verification of numerous legal documents to ensure that the transaction is legitimate and secure. By checking these important documents, you can safeguard your investment and avoid potential legal hassles down the road. Always consult a legal expert or a trusted real estate advisor to help you navigate through the complexities of property transactions.
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