Legal Documents To Purchase Real Estate In India – Required Ownership Proof
Required Ownership Proof- Property investment is a wise choice because it will yield a high return in the future. However, you must give it great thought because failing to comply with legal requirements will result in harsh consequences. There is considerable documentation required in the legal process of purchasing a property. The amount of paperwork will grow if you finance the acquisition with a house loan. If you are applying for a home loan, you will need to present the property documents to the bank; otherwise, if you are purchasing it outright, you will be given the documents in your name. Here are a few legal documents you may need to purchase property in India:
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14 Legal Documents Necessary to Purchase Property in India
Sale Deed
The main legal document that establishes your ownership of the property you are purchasing is this one. Therefore, when you legally register the property, you must prepare the original copy of this paper and submit it in the sub registrar’s office in your locality.
General Power of Attorney
This document serves as a witness to the sale and buy agreement that was executed on the owner’s behalf by an authorised party, such as an authorised dealer. When you apply for a loan, you will need to provide the original version of this title document. It must be proven that someone is acting with the property owner’s consent.
NOC, No objection certificate
While finishing a home project, a developer needs secure numerous NOCs from various authorities. The quantity of certifications varies by state. As a result, you must request that your developer or dealer obtain a copy of the NOC and retain it in your possession.
Sale Agreement
It includes all the pertinent data about the property you are purchasing, including the payment schedule, the date of possession, the features, the specifics of the common areas, the amenities, and the general terms and conditions. The developer is in charge of the property’s construction under this arrangement. Because of this, you must have the original of this document in order to buy the house and get a mortgage.
Allotment Letter
This allocation letter, which includes the specifics of the property and the sum paid by the buyer to the developer, is issued by the developer or the housing board. It shouldn’t be confused with the sale agreement. A sale agreement is handwritten on stamp paper, while an allotment letter is printed on the authority’s letterhead. The first owner of the property receives an allotment letter, and all subsequent owners are required to obtain a duplicate of the original letter from the seller.
Possession Letter
This is one of the legal documents that the developer would give the buyer in order to purchase property in India. The date on which the developer would transfer ownership of the property is mentioned. You must present the original copy of this letter if you are financing the purchase of the property.
Certificate of Khata
This certificate also goes by the name “extracts,” but the names vary by state. It is regarded as one of the most crucial documents when registering a new property. You will also require it if you decide to sell your property in the future and change the name of the owner. With the help of this legal document, you can confirm that your property is recorded in the local municipal records and that you received approval before beginning any building. When you apply for a house loan at a bank, you will need to submit this document.
Extract of the Mutation Register
In order to purchase a gramme panchayat property, you must have this document, which also contains information about prior owners. Therefore, if your property is located in a gramme panchayat, you must have this; otherwise, you do not. The paper need not be submitted in its original format, nevertheless.
Building plan copy
It is an important document that also contains a copy of the building plan that has been properly approved by the authority. This indicates that the construction is legitimate and done in accordance with the law.
Payment Receipts
You must obtain the original payment receipts from the developer when purchasing a new home. If the property was previously owned, you can request a copy of the seller’s receipts to give the bank.
Real estate tax receipts
You must pay property tax because you cannot avoid doing so. Verify the previous owner paid the property taxes and that there are no outstanding balances. This invoice serves as proof of the legal documents needed to purchase real estate in India.
Encumbrance Certificate
This certificate attests that the property you are purchasing is free and clear of any liens or outstanding debts. You will be asked to provide this document by the bank as part of the loan approval procedure. This document includes all the information on the transactions that took place over time on the property. If the property you purchase has an encumbrance, you will be required to complete Form 15. If there are no unpaid legal obligations, you will receive form 16 instead.
Certification of completion
If you are applying for a home loan, it is one of the crucial legal documents you must present to the bank in order to purchase property. It demonstrates that the structure was finished in accordance with the approved design.
Occupancy Certificate
This certificate will be given to the building’s developer by the local government where the property is located. It states that the building is ready for habitation and that the construction was finished in accordance with the approved plan.
Types of Properties: Leasehold vs. Freehold
To reduce the likelihood of purchasing houses in India that are not verified, you should check them out on official and reliable websites while searching for one. Furthermore, you should be aware of terms like freehold property and leasehold property and which will work to your advantage before looking up legal documents to purchase property in India. Your real estate agent can help you thoroughly verify these details.
A Legal Document’s Importance
Legal documents are essential for a number of reasons when purchasing property in India.
- Legal proof of the existing owner’s ownership and the seller’s legitimacy to transfer ownership includes property deeds and title deeds.
- The sales agreement is a legal contract that outlines the parameters of the transaction, such as the sale price and the timing of payments. It guarantees transparency and safeguards the financial commitments of both parties.
- The boundaries, measurements, and encumbrances of a property are detailed in legal documents. They assist buyers in making sure the home satisfies their needs.
- It is legally required to disclose any known flaws or problems when selling a property in order to safeguard the buyer. This information is presented in legal papers like a property disclosure statement.
- When someone buys a property, ownership is legally transferred from the seller to the buyer. To accomplish this, the deed is filed with the government agency in charge of handling such matters. By doing this, the proper registration of the new owner’s name is ensured.
A conclusion to the legal documents for purchasing property
According to studies, ownership of land or other property is a factor in roughly 66 percent of civil conflicts. You may infer how crucial it is to have legal paperwork in order to purchase property in India from these figures. Life becomes quite tough as a result of land disputes since it costs money and time to take a case to court. Finding a home is simply the first step in deciding on a property; the next stage of documentation is more crucial because only with these documents can you assert that you are the property owner.
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