List of Documents to check before buying a house

Although purchasing a property/home in India was at a time equated with buying gold. Yet, it has never been child’s play. As a result, despite getting handsome returns, some of the investors have often fallen prey to fraudsters and got their hard-earned money burnt! The reasons for fraud are many – earlier the records were not digitized, which led to increased chances of fraud and corruption. Thanks to digitization and various efforts from the government, the loopholes in the system have been minimized over the years, and the complication of buying a property is only there to protect innocent investors and their money alike!

Over the years, several amendments act, and measures have been put in place by the government, in an attempt to increase transparency in the real estate sector. Some of these acts/amendments are – the Real Estate Regulation and Development Act, the Benami Property Act, and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

While the acts protect the interest of investors and digitization makes everything seamless, there are still certain documents that you’d need before buying a property.

The task is complicated further by differences in the list of property documents to be checked, depending on where you live and whether the property is under construction, ready to move in, or being sold by the developer or a third party. As a result, it is critical that you are aware of the various essential property documents involved in the process, as well as what each document entails. Here is a list of ready-made property documents for your convenience –

●    Layout Approval

Builders and developers frequently sell properties before receiving layout approval. As a buyer, you must ensure that you purchase a property/home only after the builder has provided layout approval. Buying a home without this certificate can be dangerous.

●    Master Plan

Make sure to check the master plan of the city in which you want to buy a house or property. This will assist you in identifying inconsistencies in a builder’s or developer’s promises. The master plan will always show the exact infrastructure surrounding the property under consideration.

●    Land Records

These are documents that authenticate the land in terms of pending loans, ownership information, and so on. Land records are one of the most important documents to examine because they confirm the authenticity of the property.

●    Land-use Certificate

This document, also known as a CLU (Change of Land Use), must be studied prior to purchasing a property. Residential houses cannot be built on commercial or agricultural land, for example, and the CLU will provide you with all relevant information. One must ensure to demand the developer/builder to display this certificate or a copy of the CLU in order to guarantee a riskless land purchase.

●    Occupancy Certificate

An occupancy certificate protects your land purchase by informing you if all of the basic amenities, such as drainage, electricity, and water, are in place. This certificate essentially certifies that the house or property is habitable for a homebuyer.

●    Allotment Letter

It is a document that must be signed by the builder. This will be done after the land purchase advance has been made. This letter will include key clauses, a payment breakdown, and other information. Make sure you obtain this letter because the builder or developer may face penalties if the property is not delivered on time.

●    No Objection Certificates(NOCs)

Numerous establishments such as safety, electricity, and water provide no objection certificates. It is illegal to sell a house or property without first obtaining a NOC. Check that your builder has produced the No objection certificate before making any payments on the property.

●    Certificate of Commencement

It is a required certificate that a builder must obtain before beginning any type of construction. Town planning committees can obtain this certificate, which is an extremely important document to obtain before purchasing the property.

●    Completion Certificate

A completion certificate is a document issued by a municipal board after the construction of a project has been completed.

●    Builder-Buyer Agreement

After you make an advance payment on the property, the builder will present you with a buyer-seller agreement, which involves both the buyer and the seller. This agreement will include specific details and provisions about the property in which you wish to invest.

●    Sale-Deed Registration

This is a document that must be obtained after the project has been completed. This is an ownership document that can be obtained from the registrar’s office. This is a vital document, and it is critical that you read it before purchasing a home.

●    Possession Certificate

This is a certificate that you will receive once you have obtained the sale deed. In other words, this is a certificate that validates property ownership after the individual has physically taken possession of the property.

While going ahead and buying a property, make sure you have all of the aforementioned documents ready. Double-check the NOCs because it is unlawful if the property is being sold without the NOCs from various authorities.

While, there are lists all over the internet regarding these documents, curating every one of them can be a bit cumbersome at times. Hence, you can always choose to buy a house from a renowned real estate builder/company that also helps you in curating the documents!

Ashiana Housing is all about creating conveniences, right from the moment you call us for an inquiry. At Ashiana, we keep the customer above all! As soon as you begin the buying process, we assign you a person who’ll be your go-to person for all your doubts and queries. We also assist you in getting your paperwork ready, and all the builder documents are always ready with us for an easy and hassle-free buying process.

Visit our website to know more about the buying process and explore our housing projects across the country.