Buying a property is quite an uphill task, especially for first-time buyers. You have to search for a property which suits your requirement and budget. But the biggest problem for first-time property buyers is the property documentation. Most people don’t know much about the property documents required while buying a property.

When you are buying property, it is extremely important to make sure that all the legal documents of the property are in place before you pay or sign for the property. In this blog, we will talk about some major property documents that should be checked while buying property in India.

Sale Agreement

This is the first document prepared when you buy property anywhere in India. This document contains all the details of the property that you will buy. The terms and conditions that the two parties have agreed upon with financial details like price, payment plan and the date of execution of sale deed or power of attorney are mentioned.

Sale Deed or Title Deed

This is the most important document in any real estate deal as this is the actual proof of the ownership of the property. While buying a property, you must check that the Sale/Title deed must be in the seller’s name and is registered under the jurisdictional authority of the area where the property is located.

Power of Attorney

This document is required when the current seller works on behalf of the original owner on his authorization. Power of Attorney should be produced at the time of sale agreement.

Allotment Letter

When you buy a property in any project, an allotment letter is a document that contains all the details of the property along with the details of any outstanding amount. This document plays a very important role in home loan sanctions. An important point to note here is that the allotment letter is issued only for the first buyer of the property. So if you are buying a resale property, you will get a copy of the allotment letter.

Payment Receipts

While buying property from the builder, you must collect all the original receipts of the payments you made to the builder. Banks require these payment receipts for home loan sanctions. If you are purchasing a resale property, you must collect all the original receipts from the seller.

Khata Certificate or Mutation Paper

This is also known as the extracts from the mutation register. It ensures an entry for the said property in the local municipal records or village panchayat account. If you are looking for a bank loan while buying property, this is an important document.

NOC From the Government Authorities

When developers construct a project, they have to get several No Objection Certificates (NOC) from several government authorities like the Pollution Board, Fire Department, Sewage Board, etc. These NOCs ensure that the property is legally constructed without violating any rules and regulations. When you buy a property from a builder, remember to ask for a copy of these NOCs for your record and future reference.

Property Tax Receipts

While buying a property, remember to take the current property or house tax receipts with the last 5 years’ receipts. These receipts ensure that there is no tax liability pending on the property and can also establish seller ownership in government records.

Encumbrance Certificate

In simple terms, an Encumbrance Certificate or EC is a certificate of assurance that the property is free from all types of monetary and legal liability, such as a mortgage, uncleared loan, or other claims on the property. This Encumbrance Certificate is a very important document while seeking a home loan.

Occupancy Certificate

This is also known as a completion certificate; this document establishes that the property is constructed per government rules and regulations and is now ready for possession. Remember to ask the seller for this document and keep it in your records.

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