LEGAL DOCUMENTS AND REVENUE RECORDS YOU WILL COME ACROSS IN YOUR PROPERTY PURCHASE JOURNEY

1. TITLE DEED

For most Indians, property purchase is a faraway dream. They spend more than half of their lives wondering how to make enough money to finally buy their own house. Most elders advise the younger generation to somehow fulfil this dream as they see it as the best investment and the means to a secure future. The younger generation are working hard to live up to that expectation. Before deciding to buy a house one has to keep many things in mind, as investing in property is a crucial decision. One has to beware of any legal issues regarding the purchase, so as to avoid losing their hard earned money.

Property transactions in India are seen as very intensive in terms of the documentation process because of the complex statutory, legal and regulatory framework involved.

Legal documents in property purchase journey

Approximately 75% of buyers don’t receive all property documents at the time of purchase. Another source of problems is that the buyer or the seller is not aware of all the documents that are required. Keeping this in mind, our advice to you is that before you venture into buying any property, make sure that you check all the documents are in place to protect from any future legal hassles.

We provide you with a list of legal documents that would be required before buying a property. It is most important that you read this and check that everything is in order. The seller cannot sell his property or transfer to a prospective buyer unless the title deed is in perfect condition and free from any encumbrance or defects. If the property is not in the seller’s name he will not be able to transfer it and this will become another major issue.

One can search for any property title at the sub registrar office. One is entitled to receive all title documents from the sub registrar office. Even extremely old title documents that were prepared 30 years before the date of the title search need to be found. There should not be any disputes over the ownership of the property. The title deed is the one document that can allow a buyer to find out any information regarding the ownership of the property. The seller has to be the actual owner of the property.

2. ENCUMBRANCE CERTIFICATE OF THE PROPERTY

It is crucial to find out if the property that you are about to purchase is free from encumbrance. One can obtain background information about the property he or she is about to purchase i.e., whether there is any mortgage, liens, third-party claim etc. Most of the states provide online procedure for applying Encumbrance certificate for the specific period. Beyond the specified period for obtaining the encumbrance certificate, a duplicate sale deed needs to be submitted.

A form needs to be filled and submitted to the sub-registrar office for obtaining the encumbrance certificate.

Encumbrance certificate of property

3. SALE DEED

As the name suggests, this is the most important document required for property purchase. The sale deed has to be produced in original as it confirms the ownership of title of the property. The sale deed has to be registered in the sub-registrar’s office where the property is situated.

4. EXTRACTS

Khata certificate/patta or extract is called by different names in different states. It is another important document for registration of new property. This document confirms that the property has an entry in the local municipal records/ revenue department and that the construction has been done as per approved plan. When seeking a home loan from banks you would be required to produce this Khata certificate.

Read more: How to get Patta for your land?

Mutation Register Extract/ Chitta and Adangal extract- This is for Gram Panchayat properties and furnishes the details of previous ownership. Though the Mutation Register Extract is not needed in original, this document is required if the property you are purchasing is in Gram Panchayat jurisdiction.

Patta certificate

5. GENERAL POWER OF ATTORNEY

This is required when the sale or purchase of any property is to be executed by an authorized person on behalf of the owner. This document is to be produced in original when you require a home loan.

6. MASTER PLAN

One should closely examine the Master Plan of the area concerned and establish for themselves whether the claims made by the builder would actually be executed. The Master Plan of the area can be can be procured from the local town planning department of your city.

7. HOUSE PLAN APPROVAL

Ensure that the building plan of the house that you are purchasing is approved. Also check to see that no building bye-laws are violated. The layout has to be in accordance with the norms of GRIHA (Green Rating for Integrated Habitat Assessment).

House plan approval

8. NO OBJECTION CERTIFICATE

This certificate needs to be obtained wherever necessary. The seller should also provide you with a copy of NOCs for water, electricity, pollution control board, airport authority etc.

As property experts and developers, we urge you to follow all these guidelines and be extra careful while executing the purchase of your valuable property. This will surely ensure safety of your property and its documentation.