You must require knowing the documents needed to buy a home in India
Planning to buy a property? There are few steps involved in this process out of which the ‘Documentation’ is very important one. Be prepared for the major paper work called documentation. You must require knowing the documents needed to buy a home in India.
This paperwork involves providing legal information to bank authorities and getting trustworthy service from them and builders as well. Following is the list of legal documents needed to buy a home in India:
1. Agreement to Sell:
This is the very first document needed to buy a home. It contains a detailed description of property with terms & conditions including purchase price.
2. Sale Deed:
Sale deed is a most important document required in property purchasing process. It records actual transfer of the ownership of the property. You need to register the sale deed in the Sub- Registrar’s Office of the area where the property is located.
3. Khata Certificate:
Khata certificate is also known as ‘Extract’. It is required to register the new property. It is also required while transferring your property ownership to another person in future. This document is known by different names in different states and provides proof that the property has an entry in the local municipal records.
4. Receipt of Property Tax:
It ensures whether the previous property owner has paid the taxes and there is no pending due. Property tax receipts also help in proving the legal status of the property.
5. Encumbrance Certificate:
It has all the details about transactions related to property which states that the property is free from all encumbrances or loans. It is a key document for procuring a loan against property from banks. In India, a Form 15 is issued if a property has any encumbrance registered; otherwise, a Form 16 will be given to the owner, stating there are no encumbrances.
6. No-Objection Certificates (NOC):
Builder needs to produce copies of various NOCs that must be procured from various departments. It includes the Sewage Board, Pollution Board, Environment Department, Traffic and Coordination Department, etc. Ask your builder for NOC and keep the copy with you.
7. 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.
8. Allotment Letter:
An allotment letter is issued by a developer or the housing authority, stating the description of the property and details of the amount paid by the buyer to the developer. It is one of the most important documents needed to buy a home. It is issued to the first owner and other owners can ask for the copy of the original letter from the seller.
9. Completion Certificate:
This document is required for getting a home loan. This paper establishes the fact that the building is constructed according to an approved plan.
10. Occupancy Certificate:
An occupancy certificate is issued by local authorities to developer after the building construction is been completed as per the sanctioned plan.
11. Power of Attorney, if any:
This document is required to prove whether the sale or purchase of a particular property is being done by an authorised person on behalf of the owner of the property. This has to be produced in original for getting a home loan.
Apart from this, legal documents needed to buy home includes the identification proof, Age proof, Residential proof, Income related documents, etc for home loan while property purchase.
