7 Critical Documents to check before buying a Property
There is a huge difference between looking for a house and buying a house. The real process starts when you reach the second stage which is documentation. This article will help find all the important legal documents for property and ownership.
In India, according to the Centre for Policy Research, 66% of civil cases are related to land. There are 25% of the cases with the Supreme Court out of which 30% cases are about land acquisition. Such disputes create a lot of barriers in society. Due to such reasons, it is very important to note that the below-mentioned list of documents is required in case of any dispute.
Lest have a look at 7 critical documents that are needed when you want to buy a property:
1. Agreement to sell | Absolute Sale Deed and Title Deed
The agreement to sell should have all the all the information pertaining to sales, a description of the property, the terms and conditions agreed upon between the buyer and the seller and there is also mention of the sale price which was discussed and agreed upon between buyer and seller.
Absolute sale deed is the record of the actual transfer of ownership of the property. It is to be registered with the sub-registrar of the concerned region. Absolute sale deed or title deed are the documents that can tell the actual transfer of “Ownership” .
2. Khata certificate
The Khata Certificate is known by different names in different states and it provides proof that the property has an entry in the local municipal records.
3. Receipt of property tax
The receipts of property tax hold that the previous owner or occupier had paid all the taxes and none have been left as due. They also establish the legal status of the property and therefore serve as an important document of evidence.
4. Encumbrance certificate
This document has all the details of transactions relating to the property. An encumbrance certificate is a key document when applying for a loan as this document states that no loan dues are pending. It verifies that the property is free from the loan.
5. Occupancy certificate
The occupancy certificate is given by the municipal corporation after the construction of the building. It states that the construction was according to the sanctioned plan and it is ready to be occupied. .
6. Non-objection certificate
The developer of the property should ask for various Non-objection Certificates (NOCs). A few of NOCs are from the Environmental Department, Traffic and Coordination Department, Pollution Board, Sewage Board, etc. This ensures “Intimation of Disapproval” for construction.
7. Completion/Occupancy Certificate
A Completion Certificate (CC) is issued by the municipal authorities on the completion of the project. Meanwhile, an Occupancy Certificate (OC) is issued by a local government agency once a project is completed and deemed fit for habitation. This certificate reads that the property has been built in accordance with the approved codes and other laws making it suitable for occupancy. Both these documents are mandatory while seeking loans from banks and financial institutions or while applying for water, sanitation, and electricity connection.
When anyone is transferring immovable property like land, house or a building; one should note that:
Transfer of property act recognizes only sale as a mode of absolute transfer of ownership of any immovable property. There cannot be any transfer of ownership by any documents like affidavit, agreement to sell, will, etc.
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