12 Documents required for buying a property

Buying a house is not just an investment, it is a dream for most people. To fulfill this dream, they have to spend a significant chunk of their savings. The process of buying a property can become trickier if the individual is not aware of the documents required. It is natural to worry about legal documentation. But after reading this article, you will have a better idea of the relevant documents required for buying property in India.

Now and then people do purchase the property. This process includes a lot of legal rules and regulations. If one is not aware of the documents required then, it many times creates a legal problem. This forces them to lose their hard-earned money. Some of these documents are important to ensure that the property belongs to the person selling it. To save himself from all these problems, one can go through these 12 documents listed below:

1. Title document
2. Channel Document
3. Encumbrance Certificate
4. Occupancy Certificate
5. Possession Letter
6. Mortgage
7. Tax receipt
8. Utility Bill
9. Car Allotment Letter
10. Residents Welfare (N.O.C.)
11. Mutation Certificate
12. Conversion Certificate

Let’s discuss these documents in brief

1. Title document: This document involves the details of the seller, who is selling the property, and how that person got that property. Generally, this process involves three documents:
2. Sale Deed: The Sale Deed is a legal document that contains evidence of the sale and the transfer of property. It gives details of both parties, the seller and the buyer.
3. Gift Deed: This document is generated when the person gets the property as a gift. In this details of the person who gifted the property is described
4. Conveyance Deed: When we purchase a property from any UID or corporate instruments, we get this document.

Note: Usually, to save their stamp duty, people use General Power Of Attorney to buy or to sell an illegal document. Moreover, the property will become invalid if a dispute arises in the future.

2. Channel Document: A person has to go through the channel documents before purchasing a property. If a property is sold multiple times then, its details can be seen under channel documents. For example, whether he got it through a will, it is registered under their name or not.

3. Encumbrance Certificate: This certificate tells us about the property which we are buying. Whether that property has any mortgage, any loan, any pending taxes, or has any penalty on it. It is mostly available under form no. 22 in the registrar’s office. It can vary for different states. To get the certificate, you have to provide all the details of the property and you have to pay a nominal fee. After which you will get all information regarding the property. If nothing is pending on the name of the property, then through form 15 you will get a nil return. If there is any tax pending, then you will receive an answer through form 16.

4. Occupancy Certificate: An occupancy certificate will only be required in some cases. It will be available if you purchase the property from a developer. You can receive it from a particular UID or the local government. The occupancy certificate provides you with the details that the building you have built is according to the sanctioned plan or not.

5. Possession Letter: The allotment letter is the same as the possession letter. This is provided when all the rules and regulations of the Government are followed. This letter is made in the builder’s name.

6. Mortgage: Before buying a property, one has to ensure that the property was not kept for a mortgage in exchange for a loan. If anyone purchases such property, then they will become liable for the loan left or they might lose their property as well.

7. Tax receipt: Generally, the local municipality implies a land tax on every land. You have to ensure that all the taxes are paid. This receipt will help you in saving your tax liabilities.

8. Utility Bill: You have to ensure before buying a property that your previous owner has paid all the utility bills.

9. Car Allotment Letter: In current scenarios, parking is a huge problem. This letter assures you of a place for car parking near your property. If you do not have this letter, then in future you may come across a problem of parking.

10. Residents Welfare: This NOC says that the previous owner has paid all the maintenance charges of the society. IF there is any due maintenance, charges then the new owner will be liable for the same.

11. Mutation: Although with this document, we will not know who has the right over the property. It is a part of additional evidence, you have to check wherever you are purchasing the property. Whether in their government office the name of the previous owner is registered or not.  Afterward, when you purchase the property, you should change it to your name.

12. Conversion Certificate: There are two types of lands:

1. Commercial land,
2.  Agricultural land.

Before buying the property, you have to ensure that the property is commercial land. Otherwise, you have to pay a huge amount for converting the property.

These 12 documents will help in ensuring that the property which you want to buy is legally valid. This will reduce any kind of legal problems in near future. This will reduce your anxiety regarding the documentation while buying a property.

Still, have any legal doubt, contact the Legal Experts of AapkaConsultant.com

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