Important Documents to be checked before purchase of a property

Important Documents to be checked before purchase of a property

Following are a list of crucial documents that one needs to check before buying a property:

(i) Authorities’ approval on Land titles and for construction permits

•            One should ensure that the land is owned by the builder.
•            Find out if the conveyance of the property is in favour of seller.
•            Urban Land Ceiling & Regulation Act clearance certificate has been obtained by the builder. Obtaining permission for using land towards non-agricultural purpose.
•            Municipal authorities’ approval of original plan is in place.
•            Commencement Certificate has issued by municipal authorities.
•            Issuance of occupation certificate by the authorities indicating the building is complete and fit for occupation.

 (ii) Title Clearance Certificate  

•            A title clearance certificate must be obtained from the advocate certifying that the intended property for purchase is unencumbered with a clear marketable title.

(iii) Society clearance and membership

•            NOC to be obtained from the society for transfer or sale of flat.
•            Society is paid the necessary transfer charges.
•            Transferring the name of the buyer in the share certificate obtained by the society.

(iv) Property tax records

Check if the seller has paid the property tax and other related taxes as set by the local civic authority upto the registration date of the purchased property. One can obtain certified copies of the property tax, water tax, water charges and electricity charges from the city’s sub-registrar’s office.

(v) Sales agreement

While executing a sales agreement one should check for the following:

• The serial number of the flat/floor is clearly indicated.
• The purchase condition of the property as well as the carpet area/built-up area is clearly indicated.
• The agreement should have the floor plan in the annexure specifying all the amenities (flooring, door, window, etc).
• The amount at which it is sold is mentioned.
• The agreement is signed and stamped laying down the payment schedule.
• The original stamped receipts and previous sale deed in case of a resale property must be provided by the seller.

(vi) Stamp duty and registration

• The stamp duty to be paid is determined on the agreement or market value of the property, whichever is higher.
• Under the provisions of the Indian Registration Act, the agreement is to be registered with the sub-registrar within a period of four months from the date of its execution.
• One should check the stamp duty and registration charges applicable as it differs from state to state across the country.
• Taking possession of the flat.
• The possession of the flat must be done as per the date specified in the agreement.
• To check if there is a provision within the agreement to provide a refund in the eventuality of the seller being unable to provide possession of the property on the date agreed upon.
• Amenities, as stated in the agreement, are present along with running supply of electricity and water.