10 Important Documents Required To Buy/Sell Property In India

Buying property in India can be a great investment for your future. However, before you make the final decision, there are several legal documents that you must take care of. Without these, you might face serious problems later. Legal documents prove that you are the true owner of the property and ensure that the property is free from any legal issues.

In this article, we will talk about the important documents you need when buying property in India, so that you don’t get stuck with any legal problems. These documents help you protect your investment and avoid issues in the future.

1. Sale Deed: The Most Important Document

A Sale Deed is the primary document that proves you own the property. This document has all the details about the property and the transfer of ownership from the seller to the buyer.

       •  This document must be registered at the Sub-Registrar’s office.
       •  The Sale Deed must be in original format.
       •  It needs to be signed by both parties, the buyer and the seller.

Without the Sale Deed, your ownership of the property is not legally recognized. So, it’s a very important document to have.

2. General Power of Attorney: Authorizing Someone to Act on Your Behalf

The General Power of Attorney (GPA) is a document that gives someone the legal right to act on your behalf. If you can’t be there personally to sign documents or make decisions, this document allows someone else (an agent) to do it for you.

       •  It is important when buying a property through an agent.
       •  The person acting on your behalf must have the original GPA.
       •  GPA is needed when applying for a home loan or other legal procedures.

This document ensures that the transaction happens smoothly, even if you're not physically present.

3. Khata Certificate: Proving Property Registration

The Khata Certificate is a legal document that confirms that the property is registered with the local municipal body. This certificate is required for property transactions, such as when buying or selling.

       •  It’s essential when applying for a home loan.
       •  The Khata Certificate proves that property taxes are paid.
       •  This document also helps when you want to sell your property later.

Without the Khata Certificate, your property may not be legally recognized for tax purposes, and you may face issues in the future.

4. Encumbrance Certificate: Ensuring No Legal or Financial Burden

An Encumbrance Certificate is a document that confirms that the property is free from any legal or financial liabilities. It shows whether the property has any unpaid loans or mortgages on it.

       •  It’s required when you apply for a bank loan.
       •  This certificate proves there are no legal disputes over the property.
       •  You can get the Encumbrance Certificate from the Sub-Registrar.

If there is any outstanding debt on the property, the bank will not approve your loan. Therefore, ensure you have this certificate to avoid any issues.

5. NOCs: No Objection Certificates from Authorities

Before constructing or selling a property, builders or developers need to obtain NOCs from various authorities. These certificates ensure that the property is legally approved for development.

       •  NOCs are required for construction approval.
       •  You should ask the developer for copies of NOCs.
       •  These documents prove that the property has no legal hurdles.

Having these NOCs ensures that there are no legal issues related to the property from the government’s side.

6. Building Plan and Occupancy Certificate: Proof of Legality

The Building Plan and Occupancy Certificate are needed to confirm that the building was constructed according to local regulations. The Building Plan is a blueprint of how the building should be constructed, and the Occupancy Certificate shows that the building is safe to live in.

       •  The building plan must be approved by the Local Development Authority.
       •  The Occupancy Certificate is provided by the Municipal Authority.
       •  Both documents ensure the property is legal and safe.

These documents show that the building was constructed according to the law and is safe to occupy. If you don't have them, you might face problems later.

7. Sale Agreement: All the Details of the Transaction

A Sale Agreement is a document that outlines the terms and conditions of the property sale. It includes details like the sale price, payment plan, possession date, and other important information.

       •  It holds the buyer and seller responsible.
       •  The agreement must include all property features and terms.
       •  This document is essential for applying for a home loan.

Without the Sale Agreement, you could face issues regarding the terms of the deal or the property’s condition.

8. Allotment Letter: Issued by the Developer

The Allotment Letter is given by the developer or housing board to confirm that you have been allocated a property. It provides all the details about the property, including the amount you paid to the developer.

       •  It confirms that the property has been allotted to you.
       •  The letter is issued before the property is transferred to your name.
       •  It is different from the Sale Agreement.

This letter is important for you to keep, as it proves the transaction with the developer.

9. Possession Letter: When You Get the Keys

The Possession Letter is given to you by the developer when they hand over the possession of the property to you. It mentions the exact date when the property will be handed over.

       •  You will need this document if you apply for a home loan.
       •  It is proof that you have taken possession of the property.

Make sure you receive the Possession Letter before moving in or making any payments.

10. Property Tax Receipts: Proof of Tax Payment

You must check that all property tax receipts are cleared before buying a property. These receipts confirm that the previous owner has paid all the taxes due on the property.

       •  Make sure there are no unpaid taxes.
       •  The receipts are important for loan processing.

If property taxes are unpaid, you may have to pay them yourself after buying the property.

Conclusion

To conclude, buying property in India requires careful attention to the legal documents. Without these, your ownership of the property may not be legally recognized, and you might face serious issues later. These documents prove that the property is free from any legal disputes and confirm that the property transaction is valid.

So, make sure you have all these legal documents before finalizing the deal. Always consult a legal expert or lawyer to ensure that everything is in order and you don't face problems later. Buying property is a big investment, and having the right paperwork will make sure it’s a smooth and successful one.