What Every commercial property investor Should Know – Documents Required while dealing in commercial properties
India is an aspirational country. Here buying a property is a dream of several individuals and it is a massive investment as well. Business owners buy the property so that they can full their expanding needs and secure a valuable asset for their business. To buy a commercial property there is a complete process after finalizing the deal with the broker or the owner.
The real process of owning a real estate property is by doing complete documentation by owning it legally.
Supreme courts of India guarantee the land to that person who has fulfilled all the processes of owning real estate and having all the necessary documents needed for it.
In this blog, we will know all the required documents which are needed to buy a property and are processes through which we can get these documents.
What are the advantages of owning a commercial property?
Buying a commercial property has a lot of advantages and some of listed them are below
Forever low prices
The cost of commercial real estate always keeps on rising as the area around it develops, but while you own a property is cost will be the same and you will pay less prices forever. But as the price rises you will get additional benefits from price appreciation.
Price appreciation
While you own a commercial estate property you will gain equity in it, and this equity keeps on increasing with the demand of your place keep increasing. So it is an asset that keeps you returned forever even after your die. Also, it creates extra income if you lease out your commercial property.
Tax benefits
While filing for the tax you can claim the deprecating cost of the property, and can easily write off the interest paid in business or personal tax.
What are the essential documents needed for buying real estate?
Documents that are needed to rent a property are listed below
Sale deed
It is a core legal document that is needed while purchasing a property. It acts as proof of sale and transfer of ownership of the property from the seller to its desired buyer. registration is mandatory because it transfers the ownership from the current owner to the new owner of the property.
Building plan
A building plan is another document that is essential for new owners before buying a commercial property. It enables and ensures that the plan of a building is sanctioned and approved. It is issued and approved by the local municipality of the peculiar area in which the building is present. This plan is a blueprint of the building which includes equipment layout, the position of various utilities, depth, height, etc.
Floor plan
A floor plan is a drawing of the building that depicts the layout and structure of the entire floor. This includes measurements, dimensions, doorways, walls, and other amenities that are present on a floor. While caring a floor plan is an essential document for buying real estate because it is approved by local authorities and serves the legal construction of the building.
Completion certificate
A complete certificate is one of the important documents which ensure the construction of the building is done in a legal manner and accordance with local laws. This certificate is essential to get water and electricity connection from the local municipality for the building and also with this certificate securing loans over the property by any bank or NBFC can be done within easy steps.
Tax payment receipts
Every building has exitance and has tax levied over it. The buyer has to pay taxes to the government and receipts are attached as proof that the buyer has paid all the taxes in the complete buying process.
Encumbrance certificate
The word encumbrance means changes in ownership. An ec consists of all the transactions done against the building this document is obtained from the sub-registrar's office where the registration of the property is done at the time of buying the property.
Builder Buyer Agreement
A builder-buyer agreement is an agreement of sale between a builder and a buyer. It is a document that provides the specifications, modalities, conditions, and clauses between a builder and a buyer. This includes clauses related to property concerns, delivery details, and conditions related to default and delay in project delivery.
Possession certificate
This certificate is the most important document which is needed to provide by the builder to the first owner of the newly constructed building. So if you are the ist buyer of a newly constructed building it should be collected from the builder. But if you are a second buyer this certificate must be collected from the current owner and documented when you are purchasing a property.
Final words
Buying a new launch property in a different state at a different location and neighborhood requires a lot of legal documents. Building plans, possession certificates, tax receipts, floor plans, builder buyer agreements, encumbrance, and completion are some of the important documents which are essential while making a transaction.
We must also look and verify that the property you are purchasing must be RERA approved by the different state authorities. If you have all these above mention documents then you are going to go for becoming an owner of property.
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