When purchasing a house, several documents are required to ensure a smooth and legally sound transaction. These documents play a vital role in protecting the interests of both the buyer and the seller. Familiarizing yourself with the documents needed to buy a house can help streamline the buying process.
For most people, buying a home is more than just a dream. An individual spends a significant chunk of their life working towards purchasing a home. The home buying process, however, can be trickier in reality, especially if one is a first-time home buyer. The type of documents required varies depending on the type of property you wish to buy. This article serves as a home buyers’ guide for those of you involved in the home buying process for the first time.
Legal documents required to buy a property by First-Time Home Buyers
As a first-time home buyer, you can ensure a seamless property purchase with the following checklist of essential house documents:
1) The Sale Deed
The Sale Deed is an essential legal document that contains evidence of the sale and the transfer of property from the builder to the individual. Many a time, years after buying a home, the individual may want to sell the house for some reason, in which case, this document is essential. The sale deed is usually executed before the sale agreement and after the compliance of the terms and conditions detailed in the sale agreement as agreed to by the individuals concerned. So, the Sale Deed is one of the imperative documents needed for a first-time home buyer.
2) The Mother Deed
When you navigate through the legal documents required to purchase a property, this one holds the utmost importance. The Mother Deed is an important document that traces the ownership of the property. This document is generally required by banks when a buyer avails a loan against the property. An individual may approach the local authorities for help while creating this document.
3) The Sale and Purchase agreement
One of the most important documents required for buying a flat is The Sale and Purchase Agreement. It contains a list of terms and conditions that are agreed to by both the buyer and the seller. An excellent example of this would be the negotiation for the price of the flat. The agreement would contain the agreed amount of the flat by both – the buyer and the seller.
4) The Building Approval Plan
Before the commencement of construction, a builder is required to get necessary sanctions under the provisions of the Building Bylaws, Master Plan and Local Body Acts. This sanction involves two factors –
A) The Building Plan
B) The Layout Approval
One mistake that first time home buyers often make is not ensuring that the builder meets the terms and conditions of the Building Plan and Layout Approval before buying the house. Not meeting the terms and conditions could result in negative results if the local authorities come in for spot checks, which are quite common in newer buildings. Before closing the deal, make sure you gather and organize these crucial flat purchase documents.
5) The Possession Letter
One of the key documents for buying a house is the possession letter. It is a document made by the builder stating the date of the buyers’ possession of the property. This document is made in the builder’s name and is created post the receipt of the Completion Certificate. This letter, however, is not proof of one’s ownership of the property. For that, the home buyer needs to get an Occupancy Certificate.
6) The Completion Certificate
The Completion Certificate (or the Occupancy Certificate) is a document which states that the building has been inspected upon completion and follows all the laws under the municipal corporation or the local development authority. Being one of the most important documents needed to buy a home, it is required to avail utilities such as water supply, electricity supply and the drainage system. It is not advisable for first time home buyers to buy a property without the Completion Certificate as without it the building is deemed illegal and can result in a penalty or can even lead to eviction. It is possible, however, for the buyer himself/herself to approach the municipal corporation and ask for a Completion Certificate in case the builder fails to get one.
7) The Khata Certificate
A Khata is essentially a revenue document that contains details of the property, such as size, location, area that it is built upon etc. to pay property taxes. It is also a form of identification and is required when taking a home loan. It is vital to make sure that the Khata Certificate is a part of the home buying process because it is needed to apply for electricity and water supply. Even if you choose to buy a piece of land for residential construction purpose, Khata is, without a doubt, one of the significant documents for land purchase.
8) The Allotment Letter
An Allotment Letter is crucial if you plan on booking a home which is currently under construction. It includes all the details regarding the payment of the flat and any extra fees that you may have to make for any additional facilities. This letter is vital when it comes to getting a loan from the bank as it mentions the amount that is required to be paid by the buyer.
Stay organized and confident throughout your property purchase with the aforementioned comprehensive property documents checklist.
1. What are the documents required before buying a flat?
The above-mentioned list contains all the important documents of property needed to complete a transaction. You can bookmark this page to keep this list handy.
2. What is the legal process for buying a house in India?
When purchasing a house in India, the legal process entails conducting thorough property due diligence, verifying ownership and title deeds, signing a sale agreement, obtaining required clearances and permissions, and completing registration with relevant authorities to establish legal ownership.
3. What documents are used by the buyer?
Buyers typically need to provide various documents during a property purchase, including proof of identity (such as a government-issued ID), address proof, income proof, bank statements, tax returns, employment details, and any additional documents required by the lender or seller, as specified in the purchase agreement.
4. Which document is an agreement to purchase?
The agreement to purchase, often referred to as the purchase agreement or sales agreement, is a legally binding document between the buyer and seller that outlines the terms and conditions of the property transaction, including the purchase price, payment terms, contingencies, and other relevant details.