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.

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