Important Legal Documents that One Comes Across During the Property Purchase
Dec 18, 2019 Legal Guidance
It is no secret that property buying involves a lot of paperwork, and almost all of them are legally required. This is done to make sure the buyer has the fair right over the property, and there is no foul play involved.
We list down all the legal documents you must know about before purchasing the property:
We list down all the legal documents you must know about before purchasing the property:
- Land ownership proof: When buying a property, the buyer must make sure that the land on which the property is being constructed belongs to the builder or at least there is an MoU between the landowner and the builder.
- Non- encumbrance certificate: A non- encumbrance certificate holds the name of all the owners from the past 12 to 30 years. It also includes the ownership title transfer, mortgages etc. It also states that the property is free from all encumbrance. Most banks demand this document before approving the home loan.
- Certificate of land conversion: Big projects are generally constructed on lands that were previously approved for agricultural purposes. In this case, the builder should have acquired a conversion certificate from the authorities to commence the construction. If the builder fails to produce the certificate, it should be a red siren for the buyer.
- Plan approval certificate: Many developers get approval for a certain number of floors but construct more than the approved floors. The builder should be able to produce the exact number of floors approved by the authorities.
- Land and building tax receipt: These documents are required to locate the property in the government records, and it becomes easy to get the mutation of the property done in favour of the buyer. Obtaining all the bills will let the buyer know if all the dues have been paid or not.
- Commencement certificate: A commencement certificate applies to the under-construction property. The local authorities issue it after inspecting the site. After the permission is obtained, the builder is free to begin the construction of the property.
- Agreement of sale: It is the document that states the terms and conditions between the buyer and the seller. The document also mentions the date of possession, arbitration clause, jurisdiction and force majeure, among other clauses that the buyer needs to be aware of.
- Original share certificate: In many residential societies, shares are allotted in the proportions to the person’s ownership in society. In such cases, the share certificate is mandatory to proceed with the transfer of the property.
- NOC from RWA: When selling your property, you need a NOC from the RWA. This document must be produced at the time of sales.
- Completion and Occupancy certificate: After the building has finished construction, the builders need to apply for completion and Occupancy certificate, which is proof that the building is made habitable. The builder has complied with rules and regulations that were drawn by the local authorities.
- Letter of allotment: The letter of allotment establishes that the particular unit of your choice has been allotted to you and you own the right over the unit.
- Sales deed: This is an essential document, and both the buyer and the seller are required to be present at the time of the deed. The name and details of both parties must be present at the deed.
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