The Buyt Desk
You think it was tough to decide which buy a property. The next hurdle is the documentation with the purchase of a property. Property documents prove your ownership, fulfill the law mandates, and are necessary for a home loan. Usually, it is unclear which documents are required while purchasing a property. Here, we discuss the list of documents for buy a property to ease your dilemma.
Agreement to sell
Once you decide to buy a property, the first document to prepare is an agreement to sell. It states the agreed terms and conditions between you and the seller, including the cost of the property. It also contains details of the property.
Sale deed (Title deed)
The most pertinent document in the sale and purchase of a property is the sale deed. It signifies the transfer of ownership. You should register the sale deed with the Sub-Registrar’s Office that has jurisdiction over the purchased property.
Property Title Search Report
The property may change several hands. The history of property ownership should be documented. In a property title search, you retrieve the past ownership documents from the registration authorities. The title search report is mandatory to procure a home loan.
Khata certificate
Also known as extract, the Khata certificate ensures the inclusion of property in local municipal records and implies that the construction adhered to an approved plan. Banks also demand this certificate for sanctioning a home loan.
Receipts of property tax
As a part of property documentation, there should be proof that past tax dues are clear. Receipts of property tax prove that there is no pending tax for the property. If there is tax outstanding against the property, you should get full disclosure of loan statements from the bank.
Encumbrance certificate
Another essential document for a home loan is the encumbrance certificate. It ascertains no loan is pending against the property you want to purchase.
Occupancy certificate
Granted by Municipal Corporation, the occupancy certificate indicates that the building or house has been constructed as per the approved plan and is ready for occupancy.
No objection certificates (NOCs)
During the construction phase, the builder receives NOCs from different Government Departments such as Sewage Board, Pollution Board, Environment Department, etc. NOCs imply that the construction of the house or building had regulatory approval. You should collect copies of these NOCs.
Building Approval Plan
It comprises the building plan, the layout approval as per the rules and regulations of the local body acts, building by-laws, and the master plan. You can monitor if there is any deviation during the construction. Building Approval Plan is required for the sanction of a home loan.
Possession Letter
The builder gives you the possession letter after the receipt of the occupancy certificate from the Municipal Corporation. They prepare it mentioning the date on which you can take possession of the house.
Power of Attorney
When the owner makes a person in charge of their property, preparing a Power of Attorney is mandatory. Banks require the Power of Attorney for sanctioning a home loan.
Allotment Letter
It is another essential document for procuring a home loan. The builder issues the allotment letter on the letterhead, stating the property details, the payment made, and additional charges. The builder provides it to the first owner, and the future owners can receive a copy of it.
To conclude, collecting and filing the above documents will ease the process of property purchase and acquisition.
