Important Legal Documents Required for Purchasing a Property

Purchasing a property of your own can be a humongous task. It is crucial for an individual to be cognizant of all the legal requirements beforehand to avoid any miscalculation later. Be prepared to face the hurdles of property purchase by scrolling through this helpful guide that provides a final check to all the essential documents expected.

• Sale Agreement – The first document that is prepared in anticipation of the property sale is the sale agreement. A sale agreement comprises the information of the property in detail along with the terms and conditions between the seller and the buyer. It also states the purchase price on which both the parties have agreed.
• Title Deed– It is the most significant document since it presents proof that actual transfer of property ownership has taken place. A title deed is required to be registered at the sub registrar’s office in whose jurisdiction the concerned property comes.
• Title Search and Report – A title search and report is especially needed in the case when one is seeking to get a home loan. The report contains details of the property along with names of title holders, joint tenants, etc. This report reveals all of the documents relating to the property’s history.
• Khata Certificate – A khata certificate is an evidence of listing of the property in the local municipal records. It might be referred to as by different names in various states countrywide.
• Property Tax Receipts – These receipts are proof that all the taxes have been paid by the former owners with none left due. Property Tax receipts also confirm the lawful status of the property and consequentially serve as a valuable archive for evidence.
• Encumbrance Certificate – It is an essential document to gain loan against property from a bank. It consists of all details relating to the transactions for the property. It essentially states that a property is free of all encumbrances or loans.
• Occupancy Certificate – Also known as a completion certificate, an occupancy certificate is provided by the local municipal corporation after a building is constructed to establish that its construction was under a sanctioned plan and that it is available for occupying.
• Bank Loan Statement – In case any outstanding loan on the property is in question, it is advised to get the loan statements to get full information on the same.
• No objection Certificate – The developer has to produce copies of no objection certificates obtained from various departments like Pollution Board, Sewage Board, and Environmental Board etc. It ensures that the construction of the building is entirely legal and no authority can disapprove it in future.
• Building plan Sanctioned by Statutory Authorities – To make sure that the developer has or has not deviated from approved procedures, it is crucial for buyers to get hold of this document.
• Power of Attorney – In case there is any person who is acting on behalf or in the authorization of the property owner, a power of attorney becomes requisite. It can be general or specific and grants the mentioned holder the power to act in his place.