Buying a home is one of the biggest financial decisions that people often make. Thus, a homebuyer must exercise due caution while examining the property documents and all associated legal aspects of the purchase. Proper scrutiny of documents and verification of compliance of the property will ensure peace of mind and a sense of security for your investment.
Rakesh Reddy, Director of Aparna Constructions & Estates lists some of the most important legal documents that a buyer must check. Take a look:
If you are buying an under-construction property, RERA comes into effect. RERA mandates that developers should register their projects with the authority. Homebuyers are advised to verify whether the property has been duly registered. The official RERA web portal provides valuable insight into the credibility of the developer and the project.
The Khata certificate or extract is an important document for the registration of a new property. It is also required if you want to transfer the ownership of the property at a later stage. This document is proof that the property has an entry in the local municipal records.
For undisputed legal ownership of a property, you must insist on a clear sale deed. This is the most important document required for buying a property. The sale deed has to be produced in original as it establishes the ownership of title of the property. You need to register the sale deed in the Sub-Registrar’s Office of the area where the property is located.
The key to large capital gains through property investment is to purchase a property that is free of encumbrances. An encumbrance certificate is required to prove that the property does not have any outstanding legal dues or mortgages. This certificate also has all the details related to the past transactions of the property.
An allotment letter is an important document required for getting a home loan. It is issued by a developer or the housing authority, stating the description of the property and details of the amount paid by the buyer to the developer. You must keep in mind that an allotment letter is not the same as an agreement of sale. Furthermore, an allotment letter is issued to the first owner and other owners can ask for the copy of the original letter from the seller.
The sale agreement lists the information about the property including the terms and conditions, the possession date, the payment plan, and the specifications. The agreement also holds the developer responsible for the completion of the property. The possession letter is also provided to the buyer by the developer, and sets a date on which the latter would grant the former the possession of the property. Importantly, the seller must obtain an occupancy certificate from the relevant authority, before handover.
Lastly, there are numerous no objection certificates that have to be acquired by a developer from different authorities while building a housing project. The number may vary according to specific state rules. Ask your developer to provide you with copies of these NOCs for your personal record.
(The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor)