Documents You Should Check Before Buying A Property

Presents
Documents You
Should Check Before
Buying a Property.
1. Checklist of Property Documents
It is a settled legal principle that a person cannot convey a better title, than what he himself has. As
a first step, the buyer should undertake due diligence, to ascertain the existence of the title with the
seller, the nature of the title and its marketability and the ability of the seller to convey clear and
marketable title, free from encumbrance. The seller may be called upon to provide the following
documents / information:
 Title documents of the property: Government order for grant, succession certificate, sale deed, gift
deed, will, partition deed, etc., evidencing the transfer of title over the years, culminating in the vesting of
property with the seller.
 Nature of title:
 Leasehold, freehold, or development right.
 In case of the seller claiming development rights to the property, the development agreement and power of
attorney, executed by the owners in favor of the seller.
 All title documents being duly stamped and registered at the office of the jurisdictional sub-registrar of
assurances.
 Khata registered in the name of the seller.
 Information on pending or past litigation.
 Availability of original title documents with the seller.
It Is advisable to read each and every Point Carefully *

2. Verify the Identity of the Seller
The buyer should also ascertain the identity of the seller and any specific conditions, governing the
ability of the seller to convey the property. The following instances may be noted for illustration:
 Residence status and nationality of the seller, in case of an individual and whether consents from
government authorities are required for the sale.
 Identification of all owners, in case of properties held jointly.
 Where the seller is a company, trust, partnership firm, society, etc. The constitution documents of
the entity are necessary to confirm its ability to own and transfer the property, besides ascertaining
that the person executing and registering the sale deed is duly authorized.
 Orders from the competent court, permitting sale of the property and appointing a guardian,
where the property is held by a minor or person of unsound mind.
Documents that typically help you to ascertain the identity of the seller, include one’s Aadhaar
number, PAN number, passport, income tax returns, salary certificates, etc.
It is advisable to read each and every Point Carefully *

3. Conversion and Land-Use Permissions
With increasing Urbanization and merging of revenue lands with urban conglomerates, conversion
of property for non-agricultural use assumes crucial significance, since several state laws restrict
purchase of agricultural property by non-agriculturists.
Secondly, the buyer must examine the Master Plan and satisfy that the property is developed in
accordance with the zoning plan – such as residential, commercial, industrial, public/semi-public,
parks and open spaces, etc. Where actual use is different from the notified zoning, obtaining orders
from the Town Planning Authority permitting change of land use, is mandatory.
4. Construction Approvals
For purchase of apartment or land with constructed building, the buyer should also scrutinize the
building plan / layout plan sanctioned by the local municipal authorities, along with approvals issued
by government, statutory and regulatory authorities, for providing infrastructure facilities, water,
sewage, electricity, environmental clearance, fire safety approval, etc.
It is necessary to request the builder for NOCs copies from different departments, such as the
Pollution Board, Environment Department, Sewage Board and Traffic and Coordination Department,
which forms the ‘intimation of disapproval’ or the first permit required for building construction.

5. Occupancy Certificate
It is mandatory for the seller to obtain the Occupancy Certificate from the competent authority, prior
to conveying the property. Use of the property, without obtaining occupancy, exposes the buyer to
penalty under the applicable building bye-laws, besides the risk of demolition of the property.
6. Status of Tax Payment

Non-payment of Property Taxes constitute a charge on the property, affecting its marketability. So,
the buyer must verify with the municipal authorities that the seller has not defaulted on payment of
property taxes.
Do ask for the receipts of all utility bills from the seller. Please note here that once the property is
transferred in your name, you will be liable to pay all pending dues against the property, utility or
otherwise.

7. Encumbrance
Searches at the jurisdictional sub-registrar office or the official web portal of the Ministry of
Corporate Affairs (if the seller is a company) will reveal information of any Registered
Encumbrance on the property. By way of caution, the purchaser may also issue public notice in
newspapers, prior to completing the transaction, calling for claims from interested third parties, if
any.


8. Physical survey and access to the property
The buyer may undertake a Physical Survey and confirm the extent and measurement of the
property. In the case of land, it is advisable to identify and demarcate the boundaries and access to
the property and further, ascertain any other physical attributes that may impede enjoyment of the
property.

9. Compliance under the Real Estate (Regulation and
Development) Act, 2016 (RERA)
The RERA mandates that developers should register their projects with the authority constituted
under the Act. A buyer, intending to buy a property in a project coming under the ambit of the RERA
is advised to verify whether property has been registered with the authority. Information available on
the official web portal of RERA for each state also provides details of any cases / complaints filed
against the developer of the project and default by developer, if any and thus, provides useful
insight into the credibility of the developer and the project and helps the buyer make an informed
choice.
Buyers should take note of the fact that the law mandates that all real estate brokers should also be
registered with the state RERA, in order to operate legally. Hence, hire a property broker, only after
asking for his RERA registration. Also, note that agents need to get their RERA registrations
renewed, periodically. Ensure that you are dealing with the right person. One of the biggest benefits
of having a regulatory body is that it requires a standard process of operation and violators are
penalized.

10. Documents required in case of Loan Outstanding
In case there is any loan outstanding on the property you are buying, it is crucial to perform due
diligence and check some documents, before signing a deal. As a potential buyer, you can ask the
seller to clear the outstanding home loan amount or a part of it, obtain the original property
documents from the bank and get the property registered in your name, after which you can pay the
remaining amount.
You can also apply for the transfer of the seller’s loan to your name, in case you are planning to
take a loan for the property’s purchase. The bank will be responsible for the KYC, checking your
eligibility and checking the seller’s file, before transferring the loan to your name. You must ask for a
copy of the title documents and statements pertaining to the loan outstanding due from the bank, to
ensure there is full disclosure.
It is advisable that the buyer requests for the closure of the loan and gets a ‘no dues certificate’
from the bank, before the purchase.

Thank You
For more info

Contact : Reality Solutions 85 588 588 22

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Presents

It Is advisable to read each and every Point Carefully *

 Identification of all owners, in case of properties held jointly.

It is advisable to read each and every Point Carefully *

It is advisable to read each and every Point Carefully *

6. Status of Tax Payment

It is advisable to read each and every Point Carefully *

It is advisable to read each and every Point Carefully *

For more info

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