11 legal documents you need to buy property

Property buying can often be messy. Jargons float around and you can be confused with all the legalese. We made it simple for you. Use this handy guide to help you navigate the real estate pitfalls you may encounter while buying a home. While purchasing property, it is essential to check that the following documents are in order:

Agreement to sell – It is the first document prepared in anticipation of a sale of the property. It contains a detailed description of the property and states the terms of conditions between the buyer and the seller, including the purchase price as agreed upon.

Absolute sale deed and title deed – The sale deed or title deed is the most important document that records the actual transfer of ownership of the property. It needs to be registered at the sub registrar’s office under whose jurisdiction the property would fall.

Title search and report – Property title search is a process of retrieving the chain of documents relating to the history of the property that has been registered with the concerned authority. It includes a description of the property and names of title holders, joint tenancy, etc. It is especially important for procuring a home loan.

Khata certificate – This document is known by different names in different states and it provides proof that the property has an entry in the local municipal records.

Receipt of property tax – The receipts of property tax hold that the previous owner or occupier had paid all the taxes and none have been left as due. They also establish the legal status of the property and therefore serve as an important document of evidence.

Encumbrance certificate – An encumbrance certificate states that the property is free from all encumbrances or loans. It is a key document for procuring a loan against property from banks. It has all the details about transactions relating to the property.

Occupancy certificate – An occupancy certificate or completion certificate is given by the municipal corporation after the construction of a building to establish that it was constructed according to a sanctioned plan and that it is ready to be occupied.

Statement from bank if loan outstanding – If any loan is outstanding on the property that is being purchased, it is safe to procure the statements relating to the loan so that there is full disclosure in that regard.

Non-objection certificates – It is important to ask the developer to produce copies of various NOCs that must be procured from various departments such as the Sewage Board, Pollution Board, Environment Department, Traffic and Coordination Department, etc. This forms the ‘intimation of disapproval’ for the construction of the building

Sanctioned building plan by statutory authority – This is to ensure that the buyers are cautious about any deviations from the sanctioned plan made by the developer.

Power of Attorney/s, if any – A Power of Attorney is required in original if any person is acting on the authorization of the owner of the property. It could be general or specific.