Jul29
Essential Documents Required for Purchasing a New Home in India
Dreaming of buying your first dream home? The finances are also taken care of? The homebuying process can be trickier than just managing the finances. It requires careful consideration and detailed understanding of the legal documents that are required before you can call your dream home truly ‘yours’.
Fret not! For all the first time homebuyers, here is a checklist of all the essential documents that are required for a seamless property purchase:
The Sale Deed:
This key legal document establishes your ownership of the property you are purchasing. It is essential to prepare the original copy of this document and submit it to your local sub-registrar's office during the formal property registration process.
The Mother Deed:
Among the legal documents necessary for purchasing a property, the Mother Deed is the most crucial. This document outlines the entire ownership history of the property. It is typically required by banks when applying for a loan against the property.
The No Objection Certificate (NOC):
A developer is required to secure various No Objection Certificates (NOCs) from different authorities. The number of these certificates can vary by state. Therefore, ensure you request a copy of each NOC from your developer or dealer and keep it safely for future reference.
The Sale and Purchase Agreement:
One of the most crucial documents for purchasing a flat is the Sale and Purchase Agreement. This document outlines the payment plan, possession date, features, facilities, general terms and conditions mutually agreed upon by the buyer and the seller. This document holds the builder responsible for the construction. So you will require the original form of this document to complete the purchase process as well to obtain a loan.
Building Plan Approval:
The builder is bound to acquire necessary sanctions from the authority. The buyer must verify that the builder complies with the terms and conditions of the building plan and layout approval before finalising the purchase. Non-compliance can lead to issues in the future. Before closing the deal, ensure you collect and organise these approval documents related to your flat purchase.
The Possession Letter:
Another crucial document while buying a house is the possession letter. This letter, issued by the builder, specifies the date when the buyer can take possession of the property. It is prepared in the builder’s name and is issued after receiving the Completion Certificate. However, the possession letter does not serve as proof of ownership.
The Occupancy Certificate:
The Occupancy Certificate or the Completion Certificate confirms that a building has been inspected, completed and complies with local regulations. It is required to access utilities like water, electricity and drainage. First-time buyers should avoid purchasing a property without this certificate, as the building may be considered illegal, leading to penalties or eviction.
The Khata Certificate:
A Khata is a key revenue document detailing property specifics like size, location, and built-up area, and is used for property tax payments. It also serves as identification and is necessary for securing a home loan.
The Allotment Letter:
The Allotment Letter is essential when booking an under-construction home. It details the payment schedule for the flat and any additional fees for extra facilities. This letter is crucial for securing a bank loan, as it specifies the amount the buyer needs to pay.
Payment Receipts for Under Construction / Ready to Move Property:
Payment receipts serve as proof that the buyer has paid the token money to the developer. The seller typically signs on the revenue stamp to confirm the payment.
A lot of civil disputes are related to the property. So it is imperative for all the buyers to thoroughly check and go through all the legal documents before the final purchase.