An Essential Legal Checklist for Home Buyers

If you are planning to buy or invest in a house, you need to be aware of all the paperwork and legal formalities involved. The types of documents require depends on the type of the property. We have discussed the documents required for the first-time home buyers.

Here is the list of the document that are required when buying a property.

Compliance under RERA Act 2016

RERA stands for Real Estate Regulation Act. It was introduced in 2016 to protect the interests of the buyers. RERA describes the norms that prevents malpractices and enhance the transparency in transactions.

A buyer is advised to verify whether the property has been registered. A real estate broker should also be registered with the state RERA.

Here is the link to the official website: Gujarat RERA

Sale Deed

A sale deed is a legal document used as an evidence of sale and transfer of ownership of property from a builder to buyer. This is also called as final deed or conveyance deed. It explains the description of the property and rights of the buyers and sellers.

Once the process of sale deed is completed, the buyer gets the title of the ownership.

Mother Deed

Ownership of property changes through various transactions. It is essential to trace the ownership of a property. The first buyer of the house must have this document. It states the list of the ownership. This document is required by banks when a buyer wants to take a loan for a property.

Generally, the change in ownership is because of Sale, gift, inheritance, or partition of property.

Encumbrance Certificate

n encumbrance certificate is certificate of assurance that the property is free from any legal or financial liability. It consists of all the transactions registered related to property.

The Encumbrance certificate is issued at the Sub-Registrar’s office. Presently, Computerized ECs extracts re issued in states like Telangana, Tamil Nadu, Kerala, Gujarat, Karnataka, Puducherry, Odisha, Andhra Pradesh.

This certificate is important when you apply for mortgage loan and selling land.

No Objection Certificates

No-objection certificate or NOC are legal documents that are issued by government bodies, financial institutes or even an individual, to state certain facts.

You must ask your developer/seller to provide you copies of NOC for your record.

Commencement Certificate

This certificate permits the developer/builder to begin the construction of the project. This is issued by local municipal authority.

Commencement certificate proves the legitimacy of the project.

A home-buyer must not invest in project when the developer is unable to produce the valid commencement certificate.

Property Tax Receipts

Tax receipts re the proof of the regular payment of the property tax. The buyer can ask for updated original tax receipts to go through ell the details. It helps in proving the legalities of the project.

Khata / Extract Certificate

The word Khata or account used for account of the owner of the property. Khata certificate is provided to taxpayers for registration of new property or to transform any property for availing various amenities like water connection, building licence, etc.

Khata extract specifies the details bout the property taxes, the six and location of the property, built up area, building use, etc.

General Power of Attorney

The power of attorney is a legal instrument that gives the authority to another person to act as a legal representative on behalf of owner of the property. The person with power of attorney can make financial or legal decisions. He is also allowed to make a sale on behalf of the owner. This is required while getting a home loan.

Possession Letter

This document is provided to buyer from the seller or developer stating the date of the possession of the property. This letter foes not proves the ownership of the property.

Property Card

Gujarat government is planning to make property card for some 1.25 crore properties in urban areas. There are less than 20% of the property holder have a property card.

A property card is consisting of information about the ownership of property and history of holders of land. It is issued by local authorities to establish ownership in cities, RoR or 7/12 extract, is issued as a government certified property ownership title for rural areas.

Allotment Letter

Allotment letter is important if you are planning for a home loan. It consists of all the details regarding the payments. You can get the allotment letter from the owner of the property. It has to be submitted in original form to the bank.

In Summary

This list will help you in understating all the documents that need to be checked before buying a residential property. It is advisable to consult a lawyer or seek help of the real estate expert to ease the entire process by connecting to Roodland. Please note that the formalities and paperwork differ from state to state.