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:
- Title Deed:
- Ensure the title deed is in the seller’s name.
- Verify that the property is free of any encumbrances.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Possession Letter:
- Verify the possession letter which states the date of possession.
- This is essential for both new and resale properties.
- 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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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:
- Sub-Registrar’s Office:
- To verify title deeds and registration of documents.
- To ensure the property is registered in the seller’s name.
- Municipal Corporation/Local Body Office:
- For checking building plan approvals, occupancy certificate, and completion certificate.
- To verify property tax receipts and NOCs.
- Banks and Financial Institutions:
- To obtain a loan clearance certificate if the property was mortgaged.
- For assistance in getting a home loan.
- Lawyer’s Office:
- For legal advice and verification of all property documents.
- To ensure compliance with all legal requirements.
- 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.