Documents to check while buying a property

  1. checklistSale Deed:  A Sale Deed is the nucleus of the legitimate document that is considered as a valid and sole proof of the transfer of property from the seller to the purchaser. It needs to be necessarily registered in the court. It is extremely necessary to have an understanding of sale agreement between the seller and buyer before executing the sale deed. It should also be ensured that the property is free from any other overhead charges and has a clear title before legally transferring the property. The seller should ensure to settle down the property tax, water charges, society maintenance charges, electricity charges and other such payments before transferring the papers.
  2. Mother Deed: Mother Deed, The document is also known as parent document and is a very important legal document as it shadows the original owner or antecedent of the said property in a deal. It is useful to create a new ownership of the property. If the mother deed is not available than in that case the certified copies are obtained from the authorities who register such properties. Mother deed should contain the record of all the ownership’s till date in sequence and in case any ownership is missing, then records from the registering offices need to be referred.
  3. Building approval plan: A building plan is approved by all the legal authorities such as in Bangalore following government bodies should approve the plan. The BDA (Bangalore Development Authority) or BBMP (Bruhat Bengaluru Mahanagara Palike) or BMRDA (Bangalore Metropolitan Region Development Authority) or BIAAPA (Bangalore International Airport Area Planning Authority) failing to which the construction of the property in Bangalore is considered illegal under the Karnataka Municipal Corporation’s (KMC) Act. A builder must have an approved building plan from the commissioner of jurisdiction or any such officer authorized for approval. There are certain parameters that are used to approve a building plan such as road width, floor area ratio, Zonal classification and plot depth. If all the document requirements get fulfilled, then it is easy to get a building approval plan through the online automated software.
  4. Commencement Certificate:A Commencement Certificate is a legal document that helps in the start-off of a construction at the construction site after the inspection of the site from the legally authorized bodies. If found illegal, the commencement certificate is not granted or penalties can be levied. Also, an eviction notice can be sent to the builder.
  5. Khata Certificate and Khata Extract: Khata is a Hindi term used for “account”. There are broadly two types of Khata ‘A” Khata and ‘B’ Khata. ‘A’ Khata is considered a legal construction and is legally listed under BBMP jurisdiction. ‘B’ Khata is considered illegal and has properties in a jurisdiction as violated ones. Khata basically comprises of Khata Certificate and Khata Extract. Khata certificate is a necessary document in registering a new property while Khata Extract is about obtaining the property details from the registrar.
  6. Conversion Certificate: A vast expanse of land in India is under agriculture. So if anyone wants to convert that agricultural land into non-agricultural, then a conversion certificate needs to be issued from the legal body for that property. In addition to this, the revenue authority also request the town and country planning to issue an NOC for the conversion of agricultural land for residential purpose. There is a list of documents that needs to be submitted by the owner to acquire a conversion certificate. The major documents that needs to be served for this purpose includes Village map, 3 copies of the R.T.C extracts, land sketch, zonal certificate, certified copy of the land tribunal, Title deed, Mutation Records (MR) copy and no dues certificate by village accountant.
  7. Encumbrance Certificate (EC):  Encumbrance Certificate is basically used to change the ownership in the home loan security deposit documents. It comprises of all the legal transactions made on a property till date. In a layman language, it is the certificate of all the transactions made on a purchase/sale of property in a stipulated period of time. Also, it is mandatory to submit a copy of sale deed to obtain EC.
  8. Power of Attorney: A judicial procedure to officially transfer the authority of the property by a property owner to any other person on his/her behalf in known as Power of Attorney document. A POA is a legal procedure used to give authority to another person by the property owner on his/her behalf. One can either give a Special Power of Attorney (SPA) or a General Power of Attorney (GPA) to transfer one’s rights over one’s property.
  9. Betterment charges receipt: Some charges need to be paid to BBMP known as betterment or improvement charges. These charges need to be paid before the issue of Khata. The developers are liable to pay a fixed amount as betterment charges to municipal body. Before buying a property, the receipt of betterment charges needs to be obtained.
  10. Latest tax paid receipt: All the receipts of the property tax paid till date should be compiled before buying a property. A khata can be issued in the name of the buyer only if all the property taxes are paid on time to the government. It is a buyer responsibility to check with municipal bodies whether the taxes are paid for the property till date or not. Apart from this, the buyer should also assure that other bills such as the electricity bill, water bill, etc. are paid till date.Apart from this some other certificates needed to buy a property includes Completion Certificate, Occupancy Certificate, and conversion Certificate.