Verify these ten property documents to avoid any legal disputes while buying your dream home or any property you want, either an apartment, house, land, plot, retail shop, or any commercial office you must verify.
Property Documents Lists that you must Verify
Now, let us explore those property documents that every home buyer must verify before buying a house in India. Otherwise, the fraudsters are waiting for your money to make it theirs. Be careful and do the due diligence with a certified attorney.
Table of Contents
1. The Title Deed
It’s the one of the most important property documents for you while buying a house. It tells you who is the Owner and when he purchased it, with all the necessary data about the property.
But this is the document with the most SCAMs. People make a duplicate copy and sell it to an amateur who knows nothing about legal research, and they end up giving money to that fraud.
That’s why you must check it with a lawyer and then consider buying the property. Never give money to anyone before this check, no matter how desperate they are. Just don’t give them.
There are mainly two types of Title Deed:
- Sale Deed: If you buy that house.
- Gift Deed: If you take that house as a gift.
In India, people sell their property to a family member, but they report to the Government that it’s a gift from a family member. That’s how they avoid all the fees and taxes. It’s legal, but you should not do it. Because one day the Government will ask questions to you.
2. Khata Certificate (Extract certificate)
Before we move forward, let me tell you I am not a lawyer. Please discuss it with a certified lawyer before purchasing a house.
A Khata certificate tells you about the Municipality’s legal records. Is the house legit? If it’s not, then you can’t buy that. Most banks check this before approving a home loan. You must have a look at it at the beginning.
3. Mutation Register Extract
It’s similar to the Khata certificate but for the Gram panchayet. If the house is in a village, you can use the Mutation Exact to find the legitimacy of the property. In the city, you can check the Khata extract.
4. General Power of Attorney (PoA)
It gives someone the full power to sell the property. It’s applicable when the Owner doesn’t want to come to the place by himself to sell it. They send someone with the PoA to sell the house for them, someone from their family.
That person visits the buyer and then signs the necessary documents to process the sale. Your work here is to check if he has the PoA or not.
5. Copy of The Building Plan
Ask the builder to give you a copy of the building plan. Check if the building is following all the legal codes it should follow. As mentioned below:
- Wall assemblies
- Size of rooms
- Floor plans
- Roof structures
- Staircase design and
- Drainage system
- Lighting and
- Fixtures standards.
Have a legal check on them, and then approve it.
6. No Objection Certificate (NOC)
In a neighborhood, there are more than 20+ NOC documents. Ask the developer to give a copy of those to know the neighbors agreed to build the house there.
If the developer can’t give you some of that, you can say the property has some disputes there are some problems. You should not purchase that one.
7. Allotment Letter
It’s one of the most required property documents while taking a home loan. You can get this from the developer or the housing authority.
It tells you how much you had paid for the property with some description of it. The bank shall verify it before approving the loan.
8. Sale Agreement
It’s the document for the terms and conditions that will apply to that house. It contains:
- Date of possession
- Your payment plan
- Carpet area,
- Built-up area
- Super built-up area
- Building specifications
- List of amenities: Wi-fi, parking, free water, electricity
- And other agreements
If you are purchasing an under-construction property, the developer will be responsible finish the development within the given days. The agreement says all about these. Check it carefully.
9. Possession Letter
It gives you a date. From that time, you can live in that house, according to the developer. Ask them for a copy of the letter.
RERA made it clear if the developer can’t complete it on time, then he will be fined a large sum of money, or you can ask for a refund with the required interest along with it.
10. Payment Recipient
Check the payment recipient while purchasing the property. You will need it in the future if any disputes occur with the property. Don’t neglect it. Ask them for a copy.
11. Property Tax Recipient
Check if they had paid all the property taxes. If not, you have to play all. You have to spend more money on that, and they will become a burden on you.
Sometimes, the Government will fine you big money for not paying the tax on time. So check it before approving the property.
12. Encubrance Certificate
Are there any dues on the property this certificate tells you? Sometimes the previous owner default on the tax payments and the mortgage payments.
In that situation, if you purchase that house, then all the dues will be on you, and you have to pay a lot of extra money to settle it up.
If there are dues, there will be a form 15. If not, there will be a form 16. By verifying this, you can tell are there any dues to the property or not.
13. Completation Certificate
This data lets you know if this building follows all the development rules and regulations in this area or not. The banks will ask for this certificate from you for a home loan. So make sure you take a copy of this from the developer.
14. Occupancy Certificate
Now the property is completed, you can move in there. The certificate is proof of that. Secure it carefully without it problems may occur in the future.
15. Promised Amenities
Some builders promise you that we will give you all the amenities you need to live there freely. For example:
- Free Wi-fi
- Parking facility
- Washer and Dryer
- And others
But in the end, they don’t provide that. This document will save you all of these. You will get what you want in the amenities.
Double-check these 15 property documents list before purchasing a house. These will protect you from any legal dispute. If they give you all these documents, then there are some problems, and you don’t have to buy that house.
What documents are necessary to buy a house?
The title deed, extract certificate, mutation register details, power of attorney, and copy of the building plan are the top property documents that are required to buy a house.
What things to check before buying a house?
Check the title deed, power of attorney, property tax details, building plan, NOC, allotment letter, and sale agreement are the top documents you should check.
Why the title deed is so important?
The title deed tells you who is the Owner and when he purchased it, with all the necessary data.
How to avoid property fraud?
Never depend on the verbal word, always have paper ready, and know your rights and RERA laws that are made for home buyers.
How to safely buy a house?
Always check all the property detail on the RERA website and try to avoid those builders that are not registered with RERA.