Important Documents To Check Before Buying A House In India?

Investing in a property in terms of immovable assets like a House, Non- Agriculture land, Agriculture land, etc is a capital-intensive affair. During this process, one has to cautiously thoroughly deal with all the legal documents before buying.

Immovable assets like house, land has the owner to it and has ownership rights with all the right documents to which a buyer has to verify it before buying a house. For a house, it has few more documents than a land. Proper validation, scrutiny of documents one has to go through before the sale of an agreement to sale deed.

There is a set of procedures followed during the purchase of a house. Before that buyer has to validate the legal documents of the seller. Know what documents checklist to be procured before buying a house.

1. The original clear title deed of the seller. know the nature of the deed like Free Hold, Lease deed, Development, etc. 
2. E C Encumbrance Certificate for 30 years duly signed from Registration Department.
3. True copy/Certified Copy duly signed from Registration Department for its authenticity.
4. Check if it is not in any prohibition list like Government land, Assigned land, Ceiling land, FTL Land, and free from Civil court cases, Legal Dispute, Family Disputes, Boundary Disputes, Mortgages, Any loans, etc.
5. NOC from Banks, Financial Institutions, Mortgaged, banks seized, etc if any. 
6. Venture approval, Plan Approval, layout permissions certificates, final L.P. no’s from Planning dept HMDA, DTCP, GP, from competent Statutory, Regulatory authorities, etc.
7. If the seller claims to be a GPA, SPA holder, validate it from the original owner speaking to him on his PoA rights.
8. All link documents from the existence of land since Non-conversion till venture existence.
9. LRS permission certificate from the concerned authorities. 
10. BRS permission certificate. Know for how many floors the permission it has got for construction.
11. Completion Certificate.
12. Occupancy Certificate. 
13. VLTA Vacant Land Tax Assessment if any.
14. If the seller is a Company, Trust, Partnership Firm, Society, etc. Get all the valid documents and confirm the validation of executant competent person.
15. If the property is in the name of Minor, Scrutunise Valid legal documents and permissions from honorable courts for No Objection, NOC from Guardians with no hindrances.
16. Ownership can be verified from Property tax receipts, Water Tax receipts, Electricity bills which are free from any pending dues.

Below are the basic ascertainment of finding the facts of the seller and his property

• Identification of the owners of the property it is jointly held.

• Documents that mostly help you to ascertain the identity of the seller or joint holders include one’s Aadhaar number, PAN number, passport, income tax returns, salary certificates, etc.

• Know their residence of all the parties’ sellers, middlemen, if any.

• Physical survey of the house in the neighborhood regarding any disputes on the land, house, any civil cases, Criminal cases, any family disputes, measuring the land, house & rooms dimensions which are projected in the documents are true or not.

• Documents required in case seller has opted for a loan outstanding if any.

CHECK THE OUTSTANDING LOAN ON A HOUSE

If in case there is any outstanding loan on the property which you are buying, it is very crucial part on a buyer to check the documents, Outstanding Loan amount, Top-up loans if any, Got any moratorium benefits. By physically meeting the bank authorities and get the doubts cleared. Get the seller to pay the whole loan amount fully or partially and get the loan cleared. And obtain the assurance from the seller and bank authorities to return the original documents in time and get properly registered in your name, after which you can pay the remaining amount after due process. Obtaining NOC from the bank is a very crucial part of a buyer, ensure a No Due Certificate, NOC, and a full closure of outstanding liabilities before the purchase. 

Finally, these are the basic but crucial tips for buyers.

• Buyer should Carefully read the documents before signing the Sale of Agreement, Sale deed with a sound mind and with free will. 

• If the agent is well known or recommended by someone you know, still follow bylaws and procedures and verify the validate ID of Middleman.

• Always collect the Original, link Documents from the seller if not collected it may lead to modus operandi from another party, May lead to legal glitches.

• Always offer the money which has documented evidence and duly signed to avoid due-course repercussions.

• Take the consent of all the legal heirs, spouse of seller, etc.

• Take an appropriate time duration from the sale of an agreement to Registration of sale.

• Meanwhile, buyers have to make all verifications, validations, and legal opinions whatever it takes from buyers’ end as early as possible.

• Don’t agree to buy/sell property on someone else’s behalf.

• Buyer should be ready with a Sale Deed document prepared with no errors. Properly drafted from a legal expert or a document writer and get the draft proofread in the presence of all the buyers, sellers and get the objections, corrections cleared on time before paying the Stamp duty/ Fees.

• All the sellers, buyers, witnesses, and legal heirs whose names are mentioned in the document should be present in the Registration office during the registration process.

 Documents required for applying for a Loan for salaried.

If the buyer has the eligibility, requirement for a loan to purchase the house. The home loan department may ask such all the below-mentioned documents to be furnished. The advantage of opting for a home loan is they do half of the legal verification, validation of the said property from the banker’s legal team. If the loan is processed think that it is a fully clear titled house with negligible errors.

FINANCIAL DOCUMENTS.

• PHOTO.

• PAN CARD+ AADHAR CARD.

• JOB ID.

• PAYSLIPS 3 MONTHS LATEST.

• FORM -16 LATEST

• BANK STATEMENT 6MONTHS TO DATE

• IF ANY OTHER LOANS, LOAN STATEMENTS.

• PRESENT ADDRESS PROOF.

• MOD Before Disbursement (0.5 percentage stamping on loan amount).

       PROPERTY DOCUMENTS

• PERMISSION.

• PLAN APPROVAL.

• AGREEMENT OF SALE.

• SALE DEED.

• EC.

• PROCESSING FEE- DIFFERS FROM BANK TO BANK.

• LEGAL + VALUATION + BANK PROCESS FEE.

• DOCUMENT CHARGES, CHARGES DIFFERS FROM BANK TO BANK.

• FORECLOSING CHARGES, CHARGES DIFFERS FROM BANK TO BANK.

I hope this information helps the buyers or knowledge seekers. Any suggestion, Advice, Correction is truly appreciated. Happy Reading.

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