What are the documents to check before buying property?

Property plays an important part in an individual’s life. It is not just synonymous with a shelter but also serves as a source of economic security and investment option. Purchase of property in India can, however, prove to be a monetary disaster if you are unaware of the correct legal procedure to be followed. Thousands of home buyers in India experience the disaster of delayed possession and face mental agony as well as monetary loss.

In order to protect the home buyers from the builders, Real Estate (Regulation and Development) Act (RERA), 2016 was brought by the government. Therefore before investing money, the buyers should be well acquainted with some documents in order to ensure a safer and smoother experience and to avoid legal as well as mental hassles.

Documents to look out for before making a purchase

1.  Title Deed: This document contains whether the builder owns the property which is being sold, has the right to sell it or not and free to transfer the ownership. The original deed needs to be checked to get ensured that no one else has the right to sell it.

2.  Sale Deed: It is a legally registered document which acts as a proof of sale and transfer of property.

3.   Intimation of Disapproval (IOD): At various stages of construction the builder has to obtain a set of permissions which include No Objection Certificate (NOC) from various departments such as sewage department, environment department, etc.

4.  Commencement Certificate: It is a document issued by local authorities that legally allows a builder to start the construction work. The construction work is carried on without acquiring this certificate is illegal.

5.  Completion/ Occupancy Certificate: Completion certificate is given by municipal authorities on the completion of the project in the meantime occupancy certificate is given by local government authorities once the project is completed and fit for occupancy. These certificates tell the buyer that the property has been built in compliance with the given permissions.

6.  Encumbrance Certificate: This is to confirm that there is no legal proceeding in progress with regard to the property being sold or any monetary liability. This document can be obtained from the office of the registration authority.

7.  Building Plans/ Approved Layout Plans: The plan has to be approved by the local municipality authority. Caution needs to be exercised by buyers as builders can deviate from approved plans. It contains the blueprint of the project and equipment layouts.

8.  Mutation Certificate: This document tells the buyer about the identity of the owner of the property from the government records and also establishes their tax liabilities.