List Of Important Documents While Home Buying

Every individual owns a dream to buy a home, but it is more than just a dream. An individual spends a significant and large portion of their life and hard-earned money. The home buying process is however herculean and can be trickier in reality. And, if you are a first time home buyer, you should be extra cautious.

Along with that, the type of documents that are required varies depending on the type of property for sale you wish to buy. This article will be of great help, therefore, serves as a home buyers’ guide for those of you involved in the home buying process for the first time.

The Sale Deed

The Sale Deed is a legal document required for buying a property that contains the essential information and acts an evidence of the sale. It is a proof that the property is transferred from builder to the individual.

In case, after some years of purchase the buyer wants to sell the house for any reason, then they would require Sale Deed. The sale deed is usually executed before the sale agreement and after the compliance of the terms and conditions. It is a detailed document in the sale agreement as agreed to by the individuals concerned.

The Mother Deed

Another important document is the Mother Deed whenever you decide to buy a home for sale. This document is significant because it traces the ownership of the property. If the buyer wants to avail a home loan against the property, this document will be required by banks. An individual may approach the local authorities for help while creating this document.

The Sale And Purchase Agreement

The commonly used term Sale and Purchase Agreement contains a list of terms and conditions for the property you wish to buy either residential project or commercial. Both the sellers and the buyers will agree on the terms and conditions, and then only this document is validated. To apprise better, if the negotiation for the price of the flat takes place and this agreement would contain the agreed amount of the flat by both – the buyer and the seller.

The Building Approval Plan

To invest in real estate, the buyer should take all precautions and only buy property that has approved building plan. Before the commencement of construction, the builder is necessarily required to get the necessary sanctions and approvals. Under the provisions of the Building Bylaws, Master Plan and Local Body Acts, the developer for a legal construction should take care.

This sanction involves two factors –

1. The Building Plan- These are a graphical representation of what a building will look like after construction.
2. The Layout Approval

One of the most common mistakes that usually a first-time home buyer makes is buying a house without ensuring that the builder meets the terms and conditions of the Building Plan and Layout Approval. Not meeting the terms and conditions could end up in negative results if the local authorities come in for spot checks, which are quite common in newer buildings.

The Possession Letter

As soon as the property gets completed, the possession letter ensures that the buyers now can take the control of the space. This possession letter makes the property a ready to move in project and states the date of the buyers’ possession of the property.

Once the project obtains a Completion Certificate, this document is created in the name of builder. This letter, however, is not proof of one’s ownership of the property. As for that, the home buyer needs to get an Occupancy Certificate.

The Completion Certificate

Next, is the Completion Certificate which is also commonly called as the Occupancy Certificate. It is a document that will state that the building has been inspected upon completion by the concerned authorities. Also, the project for sale follows all the laws under the municipal corporation or the local development authority.

This document is required to avail utilities such as water supply, electricity supply and the drainage system. It is strictly advisable for first time home buyers not to buy a property without the Completion Certificate as without it the building is considered illegal.

After it can result in a penalty or can even lead to eviction that will create a big trouble. In some cases if the builder fails to get the CC, it is even possible for the buyer himself/herself to approach the municipal corporation and ask for a Completion Certificate.

The Khata Certificate

Khata is a Hindi word that means record and in real estate Khata is an essential document that contains details of the property. It has important information such as size, location, area that it is built of the houses for sale, so that the buyer can pay property taxes.

This document acts as an identification proof and is required when taking a home loan. It is imperative to make sure that the Khata Certificate is a part of the home buying process, as it will be required to apply for the electricity and water supply.

See also: IGRS Jharkhand: e-Nibandhan Website and Registration Process

The Allotment Letter

Another important piece of paper is an Allotment Letter that is crucial if you plan on booking a home in an under construction project. Each and every information is detailed in this letter 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.

So, to be a smart investor you would require taking precautions prior to the purchase, as any negligence can cause a huge damage. Thus, the above mentioned documents should be checked thoroughly by the buyer before finalizing the deal. 

Also see: Understand DPC Full Form, Meaning In Construction And Waterproofing