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Purchasing a property is one of the most significant financial decisions you will ever make. To ensure a safe and hassle-free investment, it is crucial to verify all the necessary documents before buying a property from a builder. Here is a comprehensive checklist of essential documents that every buyer must demand from a builder to safeguard their interests.
The Title Deed, also known as the Mother Deed, is a crucial document that proves the builder’s legal ownership of the land. Buyers must verify that the builder holds a clear and marketable title to avoid future legal disputes.
The Sale Deed is a legal document executed between the landowner and the builder. It is essential to check that the builder has the right to develop and sell the property. The Sale Deed should be registered with the local authority.
If the property is being developed on agricultural land, the builder must provide a Land Conversion Certificate. This certificate confirms that the land has been converted for residential or commercial use, as required by local regulations.
An Encumbrance Certificate ensures that the property is free from any legal or financial liabilities, such as unpaid loans, mortgages, or third-party claims. Buyers must verify this document to ensure a clean title.
The builder must provide an Approved Building Plan issued by the local municipal authority. This document confirms that the construction plan complies with local zoning laws, floor area ratios, and building height restrictions.
The Commencement Certificate is issued by the local municipal authority and confirms that the builder has permission to begin construction. It is issued only after the builder fulfills all legal requirements.
A Completion Certificate is issued by the local authority once the construction is completed. It certifies that the building complies with the approved plans and local regulations.
The Occupancy Certificate is a mandatory document that certifies that the property is fit for occupation. It is issued by the local authority after verifying that the building has adhered to local safety and building codes.
The Real Estate Regulatory Authority (RERA) registration is crucial for any real estate project. Buyers must check if the project is registered under RERA to ensure transparency and accountability from the builder.
The builder must obtain several No Objection Certificates from various departments. These include:
Fire Department NOC
Environmental Clearance
Water and Electricity Department NOCs
Airport Authority NOC (if applicable)
For under-construction properties, the builder must issue an Allotment Letter after booking the property. This document outlines the details of the property, payment schedule, and project completion timeline.
The Builder-Buyer Agreement is a legal contract that outlines the terms and conditions of the sale, including payment schedules, possession date, and penalties for delays. Ensure that the terms are clear and favorable.
Buyers must collect all payment receipts for the amount paid to the builder. These receipts serve as proof of the transactions and should be retained for future reference.
The Sale Agreement is a critical document that outlines the terms of the sale, including property details, total cost, payment terms, and the possession date. Ensure that this document is thoroughly reviewed by a legal expert.
The Possession Letter is issued by the builder when the property is ready for handover. It officially marks the transfer of possession from the builder to the buyer.
A Khata Certificate is essential for property registration and obtaining loans. It confirms that the property is registered in the local municipal records.
Ensure that the builder has paid all property taxes up to date. Any pending taxes may become the buyer’s liability after the purchase.
If you are availing of a home loan, check whether the project is pre-approved by reputed banks or financial institutions. This approval indicates that the bank has verified the project’s legality.
For under-construction properties, ensure that the builder is GST-registered and has provided proof of GST payments. This ensures compliance with tax regulations.
Lastly, it is always advisable to have all the property documents verified by an independent property lawyer. This step ensures that there are no legal complications in the future.
Buying a property is a significant investment, and verifying the necessary documents is a crucial part of the process. This comprehensive checklist will help you safeguard your interests and make an informed decision. Always seek legal assistance to ensure that the property you are purchasing is free from any encumbrances and complies with all local regulations.
By demanding these documents, you can ensure a safe and secure property transaction. Happy home buying!