10 must-have legal documents before considering buying a new home

The milestone of new home buying is beyond just a dream for most people. It is a process of meticulous planning to save money over several years or even decades of life. Home buying can be a smooth process if you are thorough with your documentation and have a good legal understanding of the same. You need to be cautious at every step of this process till it’s completed. Let us have a look at the list of legal documents you need to buy your dream home.

1. RERA Registration Certificate

Once you have narrowed down the location of your property, you need to check whether the project and the developer are registered with RERA. A unique registration number is provided by RERA. With this number you can check the developer’s details on the RERA website for the state you plan to buy a new home.

Also note that RERA registration is applicable to all projects where the land to be developed is 500 sq.m or more, and the number of apartments is 8 or more, all phases inclusive.

2. Title Search & Report

Title search and report are required to be done to know and understand the ownership details of the property. As a new home buyer, it is important to conduct this search to check the residential apartment ownership status. This step is also essential before buying a new plot. It mentions the names of owners and property descriptions.

3. Sale Agreement

The process of buying a new home begins with this important document. The Sale Agreement mentions the sale terms and conditions of the property between the buyer and developer. This also includes the total payment to be made, the amount of payment already made, and expected date of total payment. This legal document facilitates the sale process and acts as a road map for financial transactions with property descriptions.

4. Sale Deed & Title Deed

Sale Deed is the final document of ownership. It records and mentions the actual ownership transfer of the property. It has to be registered at the Sub-Registrar’s office to include the property in the jurisdiction of the city where this transaction takes place. Sale Deed is the endpoint of the Sale Agreement, as the latter is the beginning of the Sale process.

5. Khata Certificate

Property tax is a mandatory payment following the property purchase. In Karnataka, property tax is termed as Khata or Khata property tax. It is a legal document often called a Khata certificate or extract representing the property assessment account. It contains property details like built-up and carpet area along with its demarcations, owner’s details like name, address, age, and property tax ID. Khata certificate is known by different names across different regions. For e.g, in Maharashtra, it is known as Property Register Card.

6. Non-Objection Certificate

It is advisable that you request copies of Non-Objection Certificates (NOCs) from the developer. The developer complies with the conditions of Intimation of Disapproval, also known as IOD by procuring a set of NOCs from various infrastructure authorities. These are environment, traffic, tree authority, sewage, electricity, fire department, etc. Without these NOCs, the IOD cannot be granted to the developer.

7. Approved Building Plan

It is imperative for you to have a copy of the approved building plan issued to the developer by the municipal authority like the building proposal department. You can keep an eye on the deviations between the proposed plan and the built structure.

8. Occupancy Certificate (OC)

This is a very important legal document that allows you to physically possess the property. It mentions that the property has been inspected by the municipal or developmental authorities and the developer has complied with all the statutory and regulatory conditions. For the new home buyers, it is essential to buy the property only after procuring the Occupancy Certificate. Failure in doing so may result in a penalty or even an eviction to the buyer.

9. Physical Survey/Measurement

It would be in your best interest to conduct a physical survey of the apartment you wish to buy. This survey must be conducted by a professional mentioning the facilities provided by the developer and a quality check. This will also include the physical measurement of the area. This document mentions whether the actual area has been provided as per the proposed area.

10. Letter of Allotment

In case you have plans to buy a home in an under-construction building, it is mandatory to procure the allotment letter mentioning the details of your apartment/home and the financial details. Furthermore, this letter is a mandatory requirement in procuring a loan from a bank as it states the property price.

Buying a new home can be a smooth process if you have the above-mentioned documents and the necessary checks done. The more time you spend to procure maximum documents better will you have peace of mind in the future.