List of Documents to verify before purchasing property: ready-to-Move Flats
A home is where the heart resides, and for many Indians, buying a home is not just a transaction but a milestone of immense significance. Whether it’s your first, second, or even third purchase, the emotional and financial investment is substantial. Recent data underscores the importance of this endeavor.
Recent Trends in India’s Residential Market
India’s top seven residential markets saw a 26% increase in housing sales in 2023, reaching 271,000 units. Tech-driven cities like Pune, Chennai, Bengaluru, and Hyderabad experienced notable growth. Premium (above ₹1.5 crore) and mid-segment (₹50-75 lakh) apartments each accounted for 23% of annual sales .In 2024, residential sales are projected to grow by 10-15%, reaching 300,000 to 315,000 units. This growth is expected due to sustained GDP growth, controlled inflation, and a 40-50 bps decrease in home loan interest rates .
Essential Documents to Verify Before Finalizing Your Purchase
Alongside the emotional connection, it is vital to exercise due diligence by meticulously verifying all relevant documents to avoid future legal complications. Below is a comprehensive list of essential documents to check:
Sale Deed
- What: The sale deed is the primary legal document that serves as proof of the sale and transfer of the property.
- Why: It establishes the ownership of the property and outlines the terms and conditions agreed upon by both parties.
- How: Carefully read and understand all the fine print before signing. Ensure that all terms and conditions are clear and acceptable.
Completion/Occupancy Certificate
- What: A Completion Certificate (CC) is issued by municipal authorities upon project completion, while an Occupancy Certificate (OC) is issued when the property is deemed fit for habitation.
- Why: These certificates confirm that the property has been built according to approved plans and is suitable for occupancy, which is mandatory for securing loans and utility connections.
- How: Obtain these certificates from the builder or seller. Verify their authenticity with the respective issuing authorities.
Building Plan
- What: The building plan, approved by the local municipal authority, includes a blueprint of the project, equipment layout, and utilities.
- Why: Ensures that the construction is authorized and complies with local regulations, preventing future legal issues.
- How: Cross-check the building plan with the actual construction. Verify that any changes have been approved by the authorities.
Encumbrance Certificate
- What: This certificate indicates whether the property has any existing monetary or legal liabilities.
- Why: Ensures that the property is free from any dues, making it safe for purchase.
- How: Obtain the encumbrance certificate from the sub-registrar’s office where the property is registered. Verify that it shows no encumbrances.
Mutation Certificate
- What: The mutation certificate, also known as the Possession Letter, identifies the property owner in government records and establishes tax liabilities.
- Why: Confirms the transfer of property title to the new owner in official records, which is crucial for tax purposes.
- How: Obtain this certificate from the local municipal office. Ensure the document accurately reflects the new ownership.
General Power of Attorney
- What: This document authorizes someone to act on behalf of the property owner for sale or purchase transactions.
- Why: Verifies that any previous transactions made through a GPA were authorized.
- How: Request a copy of the GPA from the seller. Confirm its validity and ensure the transactions were legitimate.
No Objection Certificate (NOC)
- What: NOCs from various government departments (electricity, safety, gas, water) confirm that all necessary approvals are in place.
- Why: Assures the buyer that the property is regularized and free from pending acquisition or demolition claims.
- How: Obtain NOCs from the builder or seller. Verify them with the respective authorities to ensure there are no pending issues.
Utility Bills
- What: Utility bills for electricity, gas, and water associated with the property.
- Why: Ensures there are no outstanding dues and that the utility connections are in the owner’s name.
- How: Check recent utility bills. Verify that there are no pending payments and that the bills are registered to the current owner.
Bank NOC
- What: A No Dues Certificate from the bank if the property had a mortgage.
- Why: Confirms that all loan dues have been cleared, ensuring a hassle-free transfer of ownership.
- How: Request the seller to provide the Bank NOC. Verify its authenticity with the bank to ensure all liabilities are settled.
Title Deed
- What: The title deed is a legal document that confirms ownership and the right to sell the property.
- Why: Establishes the seller’s ownership and ensures there are no other claims or legal issues related to the property.
- How: Ask for the original title deed from the seller. Consult a lawyer to verify its authenticity and to ensure there are no disputes.
Sale Agreement
- What: The sale agreement outlines the terms and conditions of the property deal, including payment terms, delivery timeline, and amenities.
- Why: Ensures that all commitments made by the builder are documented, protecting the buyer in case of any discrepancies.
- How: Carefully review the sale agreement. Make sure all terms and conditions, including the delivery timeline and amenities, are clearly stated and agreed upon.
The process of purchasing a ready-to-move flat involves careful verification of several key documents to ensure a legally sound investment. By ensuring the legal documentation is in order, buyers can avoid potential disputes and enjoy the immediate benefits of their new home. Always consult a legal expert to vet all documents thoroughly, providing peace of mind and security in your investment.
