Thinking of buying a home? Then you are suggested to check all other elements apart from a unit, space and connectivity. The most important thing while finalizing a homebuying deal are the documents. Remember the requirement of up to date documents is similar for both the homebuyer and the seller. So, you being the aspiring home buyer must check if the developer has all these essential documents before signing a deal. Hence, in this blog post, we are listing all the documents required for home buying in India.
1. Land Ownership Proof
A home is not just a structure built with brick, cement and concrete. But, a lot of efforts goes into managing funds and budget for owning a property. Thus, you the home buyer requires to check if the developer actually owns the land parcel on which the building is structured.
A developer can prove land ownership by producing the original sales deed signed between him/her and the then owner of the land. Now, it is important to find whether the document produced by the developer is original or not and this is really simple to check.
Simply look for a registered sale deed as every selling and purchase of property is registered with the concerned authority of that particular area.
2. Non-Encumbrance Certificate
This legal document is also important to check. The issuance of a non-encumbrance certificate to a building makes it clear from all kind of disputes that include financial such as mortgage or loan issue, and property title issue.
A concerned authority issues a non-encumbrance certificate that states a property history of more 12-30 years. Remember, the banks ask for this certificate at the time of loan approval. So, ask the developer to produce the same as soon as you finalize a home buying deal.
This certificate gives an upper hand as no one can harass you in the name of property title or loan issue. So, ask for a non-encumbrance certificate by the developer at the earliest.
3. Order Copy of Land Conversion
Today, most of the residential projects are planned and being developed on agricultural land. This change in the development of residential projects reflects in the records of Government’s land pattern. So, in case you are buying a home in the project that is being developed on agricultural land then ask the developer to produce the order copy of land conversion.
Remember, that a developer having housing project planned/under construction on the agricultural land is required to have the order copy of land conversion that clearly states, by law this land is now converted into residential from agricultural.
Again remember to check for this document before finalizing a home buying deal as owning a property without having an order copy of land conversion can land you in trouble.
4. Copy of Approved Building Plan
This is tricky as the developer might dupe you by showcase his/her building plan. But, we are making you aware about checking the list of documents required to buy a home in India. A home buyer must ask the developer to produce an approved building plan.
Remember, there is a thin line between building plan and an approved building plan. The plan designed by the developer is his/her structure of a residential project and the approved building plan is the authorized building construction design.
For example, the authority sanctions a developer to build G+W number of floors but he/she built G+Z floors in the same project. Then, the remaining floors that are X,Y and Z stands illegal and the authority has the right to order demolition of these floors any a time.
Now, it is you who can protect own interest and for that ask the developer to produce a copy of approved building plan. This document is important to buy an authorized home.
5. Receipts Generated by the Revenue Department
A home buyer must ask the developer to produce the receipts of land and building tax paid by him to the authority. These documents are important to check in order to buy a property that is free from all kind of dues.
Remember that a home buyer has to bear the burn if the project is sold by the developer without clearing all the dues and taxes. So, add these documents to the checklist when buying a residential property.
6. Commencement Certificate
The local body authority issue a Commencement Certificate for the under-construction property after carrying out site inspection. A developer gets all due permissions when the authority issue this certificate. So, a home buyer should ask the developer to show the Commencement Certificate.
Also, the authority has the right to seizure, penalize and even demolish the project/property if the construction is being carried out without its permission.
7. Sale Agreement
An agreement of sale is the legal document signed by both the seller and the home buyer. This document is important in the home buying process as the details such as the date of possession, penalty clause, arbitration clause, jurisdiction and more inked in this paper.
This document is inked in the initial stage when the booking amount or the advance payment is paid.
8. Original Share Certificate issued by Housing Society
Many housing societies allocate person’s ownership and in such case they issue an original share certificate that plays an important role in the transfer of title ownership.
Also, this document is a proof for buying a residential property from its original owner. A home buyer must check this document to restrict him/herself from getting duped for a handsome sum of money.
9. NOC from Resident Welfare Association
In some cases, the RWA [Resident Welfare Association] refuse to register the name of a new property owner in their records and this may happen because of unclear dues from the previous owner. So, a home buyer must ask for the No-Objection Certificate from RWA before getting done with the buying process.
10. Occupancy Certificate
This certificate issued by the local body authority after the developer completes construction of the project. The authority carries out an inspection to check if the project is aligned with the rules related to height, distance from the road, and is constructed according to the approved plans and more.
Also, an Occupancy Certificate is important to avail civic amenities such as road, water, sewage, and other. The issuance of this certificate from the concerned authority makes the residential unit legal according to the law and you finally move into a secure home.
11. Allotment Letter
The developer is required to offer you the letter of allotment that clearly states your name and the unit number with area specification.
This document proves you as the legal and actual owner of the particular property.