Dec 28, 2021

The documents you need to check when buying a new home

Documents for home purchase, Home Buying

Buying property is one of the biggest decisions you’ll ever make in your life and in order to make sure there are no last-minute surprises, you need to make sure that all the paperwork is in place. The documents you need will not only certify you as the rightful owner but will also ensure that your developer has followed all the rules and regulations put in place by the real estate authorities.

So, what do you need to look at before you make the final decision on your purchase?

1. Sale Deed

This is the most important piece of paper required for property purchase and has to be produced in original. The sale deed needs to be registered in the Sub-Registrar’s office where your property is located.

2. Encumbrance Certificate

This certifies that the property you’re purchasing has no legal dues or mortgages pending. This document lists all previous transactions related to the property and it will enable you to apply for property loans without any hindrances. You’ll be provided with a Form 16 in case there are no encumbrances.

3. Master Plan

No matter what promises you hear about upcoming infrastructure development, do not believe anything till you see it listed on the Master Plan. Your area’s local town planning department should be able to provide you these documents in case your developer doesn’t. It also makes sense to check what land use zone is listed in the master plan.

4. House Plan Approval & Conversion Certificates

Your building planning and layout need to be in accordance with the stipulations laid down by the regulatory authorities of the National Building Code of India and GRIHA (Green Rating for Integrated Habitat Assessment), which will verify whether any building bye-laws have been violated and check whether your building plan and location have been approved or not.

Another thing to verify if you feel like your property could be located on what used to be designated as agricultural land is the Conversion certificate for the land issued by the revenue authorities. Conversion of agricultural land to residential property without the proper documentation can attract huge penalties, so proceed with caution.

5. Land Use Certificate

It is illegal to construct a residential property in a commercial ‘zone’ and vice versa. ‘Zoning’ is a process carried out by urban development authorities to ensure that there is a proper demarcation of areas within a city, with due regard given to future development plans put in place by the government. A Land Use certificate clearly lists out how the property you’re purchasing is meant to be used.

6. NOC

A No Objection Certificate (NOC) should be obtained for several different parameters. Your seller could be required to provide as many as 19 separate NOC documents, including electricity, water etc. This number could vary according to the state you reside in, but make sure you have all of them to avoid penalties for non-compliance.

7. Property Tax receipts

Ensure that you have all the tax receipts related to the property you’re about to purchase. In case your seller has missed paying any dues in the past, you may be held liable for these along with any accrued penalties at some point in the future. Tax receipts also help to verify the legal status of your property.

8. Commencement, Completion & Occupancy Certificates

A commencement certificate has to be obtained by the developer before they start construction on the property. A completion certificate certifies that your property has been developed according to the plans and permissions that were approved by authorities. An occupancy certificate ensures that a building has been certified as safe to move in, with all the necessary basic amenities such as water, electricity etc being verified by the relevant authorities.

9. Power of Attorney

This document is required to prove whether the sale or purchase of a particular property is being done by an authorised person on behalf of the owner of the property. This has to be produced in original for getting a home loan.

10.  Khata

Khata certificate or extract is known by different names in different states and 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 or an ’account’ in the local municipal records and the construction has been done according to an approved plan.

These are the main documents you need to focus on while you sign off on your new property purchase. Besides these, you may also encounter the need for documents such as Allotment Letter, Possession Letter, Mutation Register Extract, Probated Will. There may be specific documents according to the city or state you reside in that you need to check. It always helps to have someone with experience in purchasing or developing properties to help you out. At Bricks & Milestones, we ensure complete transparency when it comes to the documentation process. You can get most of the information about the property through our digital platforms and brochures, but you can also contact us to get the details that aren’t made available publicly. We would be glad to help at any time!