Buying a Home? Here’s the Checklist of Legal Documents Required

Now that the real estate sector in India has come under the purview of a proper regulation (Real Estate Regulation and Development Act) which focuses on emboldening the interests of home-buyers, it is expected that the new norms would ease the entire process of property buying for commoners, who are mostly unaware of the legalities and other know-how of the documents required for property registration.

However, as buying a house is often one of the biggest decisions of one’s life and it involves mental, physical as well as monetary investments, it’s crucial to know and check before buying all the documents required to comply with the legal requirements and make living in your own home truly memorable.

Mandatory legal documents needed in original:

Ownership proof of the land:

This is the first important document you should cross-check. It is known as the Sale deed, or any memorandum of understanding (MoU), which is required to verify and establish the ownership of the seller of the property. This document is also the main legal document when you, now as a buyer, go further to sell the property in future.

Khata certificate and extract:

While Khata certificate clearance is required for the registration and transfer of a new property, Khata extract has details of the property in terms of name, size of the property, and use of the property (whether for residential or commercial). This is required to apply for water connection, electricity connection, trade license and building license.

Appropriate building plan approval:

Check well if the property that you are buying is authorized or unauthorized. To be safe, also find if your developer has the required approval for the floor plans and the construction of the building complies with the guidelines of the National Building Code of India and is in accordance with the norms of GRIHA (Green Rating for Integrated Habitat Assessment).

Latest tax paid receipts:

Original receipts from local municipal authorities showing that property and other maintenance taxes and bills have been paid regularly help locate the property in government records and in the easy mutation of the property in favour of the buyer.

Non-encumbrance certificate:

This simply ascertains that the property is free from all encumbrances, including ownership transfers, mortgages, etc.

Commencement certificate:

This is issued by the town planning department after inspecting the building site, layout, plan, etc. Any non-compliance in this regard by the developer may result in heavy penalties or even demolition of the property.

Conversion certificate in case of agricultural land:

Any designated agricultural land can’t be used for residential purposes unless a conversion certificate has been obtained stating that the land can be used for non-agricultural purposes. Similarly, you should also check that the residential property you are buying is not being constructed in a commercial zone.

Occupancy and completion certificates:

These documents verify that the property has been constructed following the sanctioned layout plans and specified norms.

In addition to the above-listed documents, NOC (no objection certificate) from the society/building association, General Power of Attorney, NOC from Electricity Department/Pollution Control Board/Water Works Department/Air PortAuthority,etc., are also essential and should be duly checked before buying a property.