Before buying a property one should check all the documents

Before buying a property one should check whether all the documents are correct and have proper validity.

When buying a property, it is crucial to ensure that all documents are correct and have proper validity to avoid legal issues and financial losses. Here are the key topics to cover and steps to take:

Key Documents to Check:

1. Title Deed:
   • Ensure the title deed is in the seller’s name.
   • Verify that the property is free of any encumbrances.
2. Sale Deed:
   • Check the sale deed for the property’s current ownership and any previous transactions.
   • Ensure that the seller has the right to sell the property.
3. Encumbrance Certificate:
   • Obtain an encumbrance certificate to confirm the property is free from legal dues.
   • This document provides the history of the property in terms of transactions over a period.
4. Property Tax Receipts:
   • Verify the latest property tax receipts to ensure there are no pending dues.
   • Check that the receipts match the seller’s name.
5. Occupancy Certificate (OC):
   • Ensure that the property has an occupancy certificate from the local municipal authority.
   • This certifies that the building complies with the approved plans and is ready for occupancy.
6. Building Plan Approval:
   • Confirm that the building has been constructed as per the approved plan.
   • Check for any deviations that might affect future modifications or resale.
7. Completion Certificate (CC):
   • Ensure the builder has obtained a completion certificate from the municipal authorities.
   • This document indicates that the construction is complete and adheres to the approved plan.
8. No Objection Certificate (NOC):
   • Obtain NOCs from relevant authorities such as the water department, electricity board, and fire department.
   • These certificates confirm that the property meets all the necessary requirements.
9. Loan Clearance Certificate:
   • If the seller had a loan against the property, obtain a loan clearance certificate from the lender.
   • This ensures that the property is free of any mortgage or loan.
10. Possession Letter:
    • Verify the possession letter which states the date of possession.
    • This is essential for both new and resale properties.
11. Allotment Letter:
    • In the case of a new property, check the allotment letter from the builder.
    • This document details the property specifics and the payment plan.

Steps to Take:

1. Hire a Real Estate Lawyer:
   • Engage a qualified real estate lawyer to review all documents.
   • The lawyer will ensure the legality and validity of the property papers.
2. Visit the Local Sub-Registrar Office:
   • Verify the title deed and other property documents at the local sub-registrar’s office.
   • Ensure the documents are duly registered and stamped.
3. Conduct a Physical Verification:
   • Personally visit the property to confirm its existence and assess its condition.
   • Talk to neighbors and local authorities to gather information about the property.
4. Consult a Real Estate Agent:
   • A reputable real estate agent can provide insights and help in verifying the authenticity of the documents.
   • They can also assist in negotiating the price and terms of the sale.
5. Check Builder’s Reputation:
   • For new properties, research the builder’s reputation and track record.
   • Check for any past legal disputes or complaints against the builder.
6. Get Financial Advice:
   • Consult a financial advisor to understand the financial implications of the purchase.
   • They can help with mortgage options and tax benefits related to property investment.

Where to Go:

1. Sub-Registrar’s Office:
   • To verify title deeds and registration of documents.
   • To ensure the property is registered in the seller’s name.
2. Municipal Corporation/Local Body Office:
   • For checking building plan approvals, occupancy certificate, and completion certificate.
   • To verify property tax receipts and NOCs.
3. Banks and Financial Institutions:
   • To obtain a loan clearance certificate if the property was mortgaged.
   • For assistance in getting a home loan.
4. Lawyer’s Office:
   • For legal advice and verification of all property documents.
   • To ensure compliance with all legal requirements.
5. Real Estate Agent’s Office:
   • For guidance on market trends and property value.
   • To assist in negotiating terms and verifying documents.

By thoroughly checking these documents and following these steps, you can ensure a smooth and secure property purchase.