Important document checklist for the first time home buyer

Property dealing is a herculean task anywhere in the world, be it buying or selling. It is particularly demanding in India with variable laws governing each state. Other factor like inexperienced realtors, finances, property condition and legal issues also complicate the entire procedure, especially for the buyer. Most of these hurdles can easily be overcome if the necessary paperwork is organized and updated. It is therefore important to deal with the entire procedure systematically to reduce the hassles which come along with it.

  • Sale Deed or Conveyance Deed – A core legal document which establishes sale of a property and transfer of ownership. Before signing the deed, the buyer and seller both agree to a custom created “sales agreement” by either or both of the party’s lawyer.
  • Title Deed – In simple words this ensures your right to ownership and the use of property. It could either be partial or full property. Having the property title means you can own and modify the property within legal standings.
  • Mother Deed – This displays proof of all the ownerships of a property including the origin. Mother deed includes all the changes in the ownership of the property like gift, inheritance, partition or sale. In case of unavailability of this document, particularly in old properties, certified copies can be procured from a registering office.
  • NOC (No objection certificates) – A builder is required to obtain permissions from various departments like sewage, forest, traffic, environment and other such departments for his construction to be in compliance with their set requirements.
  • Encumbrance Certificate (EC) – This certificate is necessary in case a buyer is seeking loan to buy a property. It denotes all the financial transactions including any outstanding mortgage or pending liabilities in the sale of that property.
  • Khata Certificate – Khata is basically the “account’ of a person buying the property. This certificate is required prior to registering a property.

Buying a property which is under construction needs extra caution in terms of completion time, builder credibility and other such issues which are accompanied with additional legal documents.

  • Commencement Certificate – This is a permission certificate issued by the local governing body to the builder, to proceed with construction. This simply removes the chances of a property to be deemed illegal on the built site.
  • Approved layout plans – An approval of the basic design, infrastructure, inclusions and exclusions of a building. This is important to have as many a times certain builders deviate from their original plan which can later create legal issues between the buyer and municipal corporation.
  • Completion Certificate – This is also issued by the municipal body stating that the construction is completed in terms with their rules of height, width distance and other parameter.

Apart from the above basic must have documents, one can do their own research and hire a lawyer to understand the outcome of their property investments. Documents like Ready Reckoner Rates, Conversion Certificate, Betterment Certificate, Tax Declaration, Share Certificate, Power of Attorney and Occupancy certificate (all, if applicable) will surely help you in making an informed decision. Buying a property not only fulfills your dream of buying that dream home, but it is also an investment for life. Keeping the above checklist in mind, makes it easier, especially for the first time home buyer.