13 Jul 2022

Buying a Home? Carry These Legal Documents With You!

Buying a Home? Carry These Legal Documents With You!

So you bagged an opportunity to buy your dream home! Congratulations, and we hope you are ready for the major paperwork coming your way! Yes, you read that right; buying a property does not only include financial planning but a lot more than that, like providing documents to authorities and the bank (in the case of a loan) and attaining several documents related to ensuring your ownership of the home. So, buying a property can become a hassle if you are not thorough with the legal requirements. But if you have Clicbrics, you will have a hassle-free home buying experience. So, continue reading the blog and learn how! 

1. Sale Deed

At the time of home buying, the most important legal document is the sale deed, which should be presented in its original form. It is done to provide ownership of the property. To continue with the process, you are required to register the sale deed in the Sub-Registrar's office in the area where you intend to buy a property. 

2. Khata Certificate

The Khata certificate is also known as an extract and by some other names based on different states. It is another mandatory legal document that is needed for the registration of a new property. It is also required at the time of transfer of ownership at a later stage. The Khata Certificate acts as proof that the property has an entry in local municipal records and that the construction work has been done under the approved plan. If you are planning on taking a home loan, there are big chances that banks will ask you to present the Khata Certificate before granting you the house loan. 

3. Mutation Register Extract

The Mutation Register Extract legal document is for Gram Panchayat properties. The legal document has complete information about the previous owner of the property. You don't have to submit the original legal document, but you are required to produce it when buying a home under the jurisdiction of a Gram Panchayat. 

4. General Power of Attorney

A General Power of Attorney is a legal document that acts as evidence of whether or not an authorized person is doing the sale or buying process of a property on behalf of the owner of the property. Usually, a General Power of Attorney document is asked to be produced in the original form when taking a home loan from a bank

5. Copy of Building Plan

Any homeowner must have a copy of the building plan approved by the statutory body. It is done in order to state the fact that the construction of the property is legal and is done based on the rules and regulations of the authorities. 

6. NOC

A buyer might get 19 NOCs from the developer, who obtains them from different authorities before starting the construction project. Nevertheless, the number is not specific as it varies from state to state. Therefore, create a personal record for yourself where you can keep copies of all the NOCs you have attained from your real estate developer. 

7. Allotment Letter

If you are considering getting a home loan, the most important legal document is an allotment letter. The developer or the housing authority issues the document. The allotment letter essentially states the property description as well as the amount paid by the buyer to the developer. Don't be fooled by the developer if he states that the allotment letter is similar to the sale agreement. It is due to the fact that the sale agreement is documented on stamp paper, whereas an allotment letter is issued on the authority's letterhead. The first owner holds the original copy, and the rest of the owners (if any) can ask for copies from the seller. 

8. Sale Agreement

The sale agreement lists all the information about the property, starting from the terms and conditions, possession date, and payment plan to specifications, facilities, etc. In the event of any discrepancy, the developer will be held responsible for the construction. At the time of buying a property or acquiring a home loan, one is required to produce the original copy of the sale agreement. 

9. Tax Receipts

When buying a new property, ensure that the previous owner of the home has paid the property taxes and nothing is due from his end.  Property tax receipts can be used as proof of the legal status of the property. 

10. Occupancy Certificate

The seller receives an occupancy certificate from the competent authority before conveying the property. It is an important legal document because, without this document, the buyer will be exposed to penalties under the applicable building laws, which can lead to the demolition of the property.

11. Possession Letter

The real estate developer provides the possession letter to the buyer of the property and sets a date on which the developer will provide the buyer with possession of the home. You might need the possession letter at the time of taking out a home loan.

12. Payment Receipts

If you are buying a home for the first time, you should compile all the legal documents, including the payment receipts, into a file. Always collect original payment receipts from the developer. In the case of purchasing a resale home, ask the seller for copies of the receipts that have to be presented to the bank. 

13. Encumbrance Certificate

The role of the encumbrance certificate is to prove that there are no pending legal dues for the property. When you ask a bank for a home loan, it will demand an encumbrance certificate.

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