Legal Documents Checklist for Buying A New Property

Looking for new property – Bangalore is realty at its best right now. Bangalore is the best place to invest and best place to live. Meanwhile, process of buying a new property needs to be done very carefully by checking all the legal documents. Otherwise new property can become a nightmare for a buyer and you may be in for an enduring troubles. This article contains some important legal documents need to check before buying a new property.

 

Legal Documents Checklist

  1. Sale deed/Mother deed: This is the most important document for tracing the ownership of the property. It gives complete details of the property as how it was acquired at the initial stage and the subsequent series of transactions it has undergone.   A Sale Deed is the core legal document that acts as proof of sale and transfer of ownership of the property from the seller to the buyer. A Sale Deed has to be mandatorily registered. Mother Deed, also known as the parent document, is an important legal document that traces the origin/antecedent ownership of the property  from the start. Mother Deed includes the change in ownership of the property, be it through sale, partition, gift or inheritance.
  2. Building approval plan: Check for a copy of the approved building plan by the respective government authority and also for the portion of the apartment being purchased. BBMP/BMRDA/BDA approval is a must.
  3. Khata certificate: Khata should be in Property owner’s name. The Khata is widely referred to as A Khata and B Khata (Revenue records extract). ‘A’ Khata has properties listed under BBMP jurisdiction with legal property construction and ‘B’ Khata has properties under local jurisdiction with violated property constructions. One should avoid buying a B Khata property as it will be deemed as an illegal construction.
  4. Encumbrance Certificate (EC): An encumbrance certificate is evidence that the property in question is free from any monetary and legal liabilities. It is evidence that the property can be sold as a free title and the ownership will come to you without any associated baggage. It is your assurance that the property you are about to invest in is clear of any legal dues and has a marketable title.
  5. Power of Attorney (POA): A power of attorney (POA) or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter, sometimes against the wishes of the other. Simply we can say Power of Attorney (POA) is a legal procedure used to give authority to another person by the property owner on his/her behalf.
  6. Up-to-date tax paid receipts and NOCs: Receipts for property tax bills shows that taxes for the property are paid up-to-date to the government/municipality. Along with this, the buyer should also ensure that other bills such as the water bill, electricity bill etc. are paid up-to-date.
  7. Commencement Certificate: Commencement Certificate is for under construction property. It is a legal document issued by BDA or BBMP after the inspection of the site.
  8. Conversion Certificate: Conversion Certificate is for Agricultural to Non-Agricultural land. It is issued to change the use of the land from agricultural to non-agricultural purpose.
  9. Occupancy certificate: This is issued to the developer by the apartment corporation/BDA/CMC. A buyer should insist for this. It certifies that the project is ready for occupancy.
  10. Agreement: Once the property is decided, make an advance payment and get a written agreement on a stamp paper duly signed by both the owner and the buyer in the presence of two witnesses.
  11. Registration: Before the registration, you need to confirm that all utility charges and taxes of the property have been paid till date. Get the deed registration done in a sub registrar office within the timeframe mentioned in the agreement. For registering a property you need- house tax/property receipts, original title deed, and previous deeds etc., two witnesses are also required at the time of registration.

Buying property is too long process in India. Above are some basic legal documents checklists you need to check before buying a new property.  Apart from that, you can also consult good legal adviser for better information’s. For happy ownership you should check all the legal documents before buy your dream house

Anjali Radhakrishna

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