How to Check Property Documents - Checklist:
Documents to check before Buying a Property:
Buying a property is a critical decision and given its capital intensive nature, it is imperative that you conduct a thorough research and due diligence before entering into the transaction.
In order to ensure that the property you are buying is free from issues that may not be apparent in the immediate term but have long term implications, you must check the following documents.
When buying or booking an Under-Construction Property:
Commencement certificate:
Always ask the developer for the Commencement Certificate issued by the local authority. This certificate proves that the developer has compiled with all the local rules and bye-laws, and that there is no legal dispute over the title of the land. In other words, the document certifies that the real estate developer is entitled to start with the construction as the required permissions are duly provided.
In case of a new launch, property where the commencement certificate is not available, the developer accepts interest in property against a small booking amount. It is important to have a receipt of the payment made against the property. Such receipts are required and helpful at the time of cancellation or withdrawal from the investment. It is necessary that a buyer be fully-aware of all legalities before buying. Home buyers must always ask the developer before investing.
When buying a fully-constructed or resale property:
Occupation certificate:
The certificate is issued by the local governing body or the development authority when the developer applies for it, post completion of construction of the building as per approved plans. There might be many properties where the users have occupied flats without the occupation certificate. However, one should refrain from buying such properties as these might have issues later.
A home buyer should also consider hiring a legal expert to check the authenticity of the various documents and certificates concerned with the real estate transaction. If the seller is not providing these documents or showing resistance, it is better to not enter into the transaction. This will help in ruling out any potential issues later on.
At times, applying for a home loan also helps in checking on the above-mentioned aspects. All banks and financial institutions undertake a thorough due diligence before sanctioning any property loan.
In fact, for under-construction properties, developers tie-up with banks and financial institutions for providing home loans to their customers. Needless to mention, that these financial institutions check all the necessary aspects, before sanctioning loan for any project.
Property Documents Checklist:
- Sale deed in present Seller’s Name
- Encumbrance Certificate [from date of purchase till date]
- Agreement of sale and construction executed by developer [In favour of seller]
- Latest Electricity bills
- Non Objection Certificate [NOC] from Apartment's Association
- Possession Certificate from Builder
- All Title Documents in Land owner name
- Copy of Society Registration Certificate
- Joint development agreement [Between Land owner and Builder]
- GPA and Sharing/supplementary Agreement [Between Land owner and Builder]
- Latest statement from bank [If any loan is outstanding on the property]
- Copy of all Registered previous agreements [In case of Re-sale Property]
- Sanctioned Building plan
- Khata certificate and extract from BBMP
- Records of Rights and Tenancy Corps [RTC]
- Conversion order issued by the Concerned Authority
- Power of attorney's [If any]
- Upto date tax paid receipts
- Copy of Society share certificate