Documents Checklist For Home Buyers

Buying an abode is always a moment of excitement. But with this happiness comes along a long list of responsibilities and documents checklist to follow. Many new home buyers may not be aware of all these facts hence; through this blog, we’ll try sharing some of the important points which need to be considered before investing in a property. After all, you should be clear with your paperwork to ensure complete ownership of your asset.

Make a list of all important documents

Let us look at some of these crucial steps:

• Sale Deed/Title deed

This is an important piece of document that every homebuyer shall possess upon purchasing a home. The signing of deed signifies that the seller has transferred the ownership to the buyer through the ‘Deed of Sale’.
Why is it needed? – Without a sale deed, a transaction is not legally valid until signed by the buyer and seller. It is the most important document while buying and selling a property in India.

• RTC Extracts

RTC is a valid document issued by the Village Accountant.
Why is it needed? It is required to trace the title of the property.

• Khata Certificate and Extract

These are 2 different papers which are equally important while purchasing a property. Applicable only in Bangalore, Khata Certificate includes the details of property ownership and it is issued by the Assistant Revenue Officer.

Khata Extracts encloses the details about the property. It includes name, property size, uses of this property- commercial or residential, and last assessed details.
Why is it needed? – It is mandatory while registering, transferring new property, water connection, electricity connection, trade license and building license. It basically confirms that the property is constructed as per approved plan.

• Mutation Register Extracts

This document is provided by the Village Accountant or Tahsildar. It contains the details of the previous and present owner, the mode of acquisition and total extent of the property.
Why is it needed? It is required to produce when the property comes under Gram Panchayat.

• General Power of Attorney

It is an important legal document where the owner gives the power to another person to take legal and financial decisions on his behalf.
Why is it needed? – It is needed to check if the previous sale was done by an authorized person and to apply for a home loan.

• Copy of Building Plan

Any buyer must own this paper issued by the statutory body as permission that the property has all the approvals for construction of the property.
Why is it needed? – This is to establish that the development is an authorized one.

• No-Objection Certificates (NOC)

This is a must-have document from the builder. There are 19 NOC’s in total and a developer has to acquire all these while building a project.
Why is it needed? – It is required to ensure that all the government documents are in place.

• Allotment Letter

This important document is provided by the housing authority or developer on a letterhead stating the property details and amount paid by the buyer. The Allotment letter is issued only to the 1st buyer by the builder; following owners can have a copy of the original letter.
Why is it needed? – It needs to apply for a home loan and purchasing the property.

• Sale Agreement

A sale agreement includes details like possession date, terms, and conditions, payment plan, details of common areas & facilities, specifications etc. about the property. Sale agreement can be accepted only on a stamp paper.
Why is it needed? It is required at the time of property purchase and while applying for a home loan

• Possession Letter

This document is given to the buyer by the developer setting a date on which the property will be given possession.
Why is it needed? It is needed at the time of applying for a loan.

• Payment Receipts

Payment receipts should be collected in original from the builder. In case of resale, payment receipts can be collected from the 1st buyer.
Why is it needed? It is needed while applying for a home loan.

• Property Tax Receipts

Property tax receipts provide legal status of the property.
Why is it needed? It ensures that the previous owner paid property taxes and there are no dues pending.

• Encumbrance Certificate

Having this certificate proves that the property does not have any pending legal dues or mortgages. If the property holds any encumbrance registered than, Form 15 will be issued and if it has no encumbrance than, Form 16 will be handed to the owner.
Why is it needed? This document is required by the bank authorities before they grant you a loan.

• Completion Certificate

Completion certificate states that the construction happened as per the approved plan.
Why is it needed? It has to be submitted to applying for a home loan.

• Occupancy Certificate

This certificate is issued by the local authority to the developer ensuring that the building is ready to be occupied. An inspection will be done to confirm if the construction is completed as per the sanctioned plan.
Why is it needed? It is mandatory during 1st purchase to apply for a loan and record during property purchase.

Buying home is still a big investment for Indians. It is always better to be alert and aware of the documents that should be in your favor to avoid any hassles in future at the time of selling. Before signing any deal you should also have a good understanding of these legal papers as blindly signing might get you into unnecessary trouble. Hope the above-mentioned checklist will help you with your purchase of dream home!

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