Documents required for buying property in India

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Documents required for buying property in India


Buying property and owning is often one of the biggest decisions of one’s life hence it’s important to have good knowledge about all the property related formalities so that your decision nowhere goes wrong and you can comply with all the legal requirements to own a property in India. Hence, one of the important legal formalities that ought to be correct while buying real estate is the number of legal documents required to purchase/own a property in India.


List of Documents for buying property:

To avoid any legal hassles ensure that you check all the documents related to a property that you are going to invest your hard earned cash into.
The lists of legal documents that need to be considered before buying property are given as under:


1. Title Deed

  • It is one of the essential things to check for. A seller cannot transfer his property to a prospective buyer if the title is not perfect and free from any defects.
    Any individual who claims himself as the seller does not have the authority or right to sell if the plot is not in his name and he doesn’t hold any title over the said.
  • The title deed gives buyers a chance to discover ownership rights.The seller should be the actual owner. Before buying property, one should also learn whether the seller has the ownership of the realty or just has its development rights.

2.Encumbrance Certificate:

  • It is vital to know whether the landholding is free from any legal dues Like in the case of title search; even difficulties over the plot can be searched for at the Sub-Registrar’s office.
  • Apart from this, information about all the background about the plot concerned, as to whether there is any loan, or any third party claim, lien, etc. Is also available and can be provided.
  • It is important to take care when buying or investing in a mortgaged estate.
    The encumbrance certificate (EC) is sought because it would have a record of the considerable number of transactions done during a stipulated period over the real estate concerned.
  • The sale deed in duplicate needs to be submitted for obtaining an EC.

3.Master Plan

  • You will come across sellers or developers who regularly claim certain infrastructural development at where the land or building is situated. Different cases like a shopping mall will be built, schools and colleges would be built, highways and metros would often be constructed hold no ground, and they are only for enticing more and more buyers.
  • Before buying realty, one should clearly review the master plan for the area or region concerned.

4. House Plan Approval:

  • It is highly necessary that you ensure that the place where your building is located has been approved and also verify whether the house plan has been approved or not.
  • You should also review and see whether any building bye-laws are violated.
  • The building planning and the design should be by the guidelines of the National Building Code of India.

5. Agriculture to Non-Agricultural Land Conversion Certificate:

  • One must see that the plot that you are buying is not delegated as agricultural land. Any land which is assigned as an agricultural land can’t be used for household plans, if it is so done, then it will be acknowledged illegal.
  • Hence, if you have reasons to believe that the plot you are purchasing used to be an agricultural land, make sure that you are provided with a exchange certificate of the land issued by the appropriate income authorities.
  • A conversion certificate is required to change the purpose of land use from agricultural to non-agricultural.

6. Land Use Certificate:

Constructing a building for residential purposes in a commercial zone is illegal. Thus, in order to ensure that the real estate you are buying is a household and not a commercial one, you have to apply to the development authorities of your respective city to confirm that the residential building that you are planning to buy is in the household region and not in the commercial, agricultural or manufacturing zones.

7. No Objection Certificate:

No objection certificates should be obtained wherever necessary. It is essential that the seller of the estate should provide you with a copy of the Urban non-ceiling NOC and also for water, electricity, etc. as well.

8. Commencement Certificate:

  • This certificate is important for any construction of land or building to commence. This certificate is issued by the town plan department after studying the building layout, plan, superstructure, etc.
  • The real estate builder should have all the necessary sanctions before he sets out to construct.

9. Tax Receipts:

Tax receipts should be checked to assure whether the seller of the estate has paid all tax accruing on the plot for the past three years to the authorities. Ensure that you request for previous receipts of property tax if you are purchasing a property that is being resold.

10. Sale Deed:

  • Before completing a sale deed, the buyer should inspect and ensure that the estate has a free title.
  • A Sale Deed is one of the essential legal documents. It is proof that states that the building has been sold and the ownership has been transferred from the seller to the buyer.
  • Before executing a sale deed all costs like holdings tax, electricity and water charges, and maintenance and housing society charges.

11. Khata Certificate or Extract of the Property:

Khata in English means “account”. It is the account of a seller or the owner.
A Khata extract is fundamental for buying property. This is of prime significance for not only transferring a property but also for the registration of the new property.
Other legal documents records such as Completion Certificate (CC), Power of Attorney (POA), Probated Will, Occupancy Certificate (OC), etc. are also essential at the time of buying the estate.

SEE: Why property is likely to be less expensive after demonetization

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