What Are the Legal Documents Required For Buying a Property

Buying a property isn’t a convenient task, as you need to get into the hassle of paperwork. To make the work convenient, you can keep all the legal documents ready beforehand. So there will be no confusions or delays at the last moment. 

Buying your own house or a commercial place is one of the most important tasks of your life. That is why you want to do it appropriately. But with all the paperwork included, the purchasing process may become messy and complicated. While you can’t avoid the hassle, you can reduce it by keeping all the required legal documents handy. 

Here is a list of records that the authorities will ask you for:

Sale Deed

The reason why this document is the most vital one is that it confirms the property’s ownership title. So you need to get a deed of sale ready and register it in the Sub-Registrar’s Office, which is explicitly authorised for the property’s locality. This is also one of the documents which are required for a property loan..

NOCs

No-Objection Certificates or NOCs are obtained from different authorities by the developer of the property. These ensure that the property has been made legally, and no one can object on its construction later. There can be up to 19 NOCs that you need to enquire about from your developer. 

Tax Receipts

In case the previous owner didn’t pay all the associated taxes of the property, you will have to pay it later on. Therefore, you must get all the tax receipts to guarantee that there are no dues left. 

Sale Agreement

This document is essential for both purchasing the property and availing of loan on it. The sale agreement specifies every big and small detail about the property, and the agreed-upon sale information. It also includes the developer’s responsibility for the property’s construction. So it will help if you get it ready in original to ensure everything is kept fair. 

Khata Certificate

Also known by extract, a khata certificate is used for registering the property. It is the guarantee of the legal and approved construction. Plus, the document proofs that the property is appropriately entered into the records of the local municipality. 

General Power Of Attorney

Buying or selling a property isn’t a small task. Therefore, the selling person has to show that they have the legal authority to sell the property. The general power of attorney is used for this purpose. You also require this to apply for a loan on the property. 

Allotment Letter

There are majorly two differences between the allotment letter and the sale agreement:

  • Firstly, an allotment letter is only provided to the first owner of the property. As you are buying the property and you aren’t the first owner, you have to ask for its copy. On the other hand, the sale agreement is originated with every purchase of the property.
  • Secondly, this letter gets issued on the associated authority’s letterhead. In contrast, the sale agreement uses stamp paper for the same. 

Apart from these differences, almost all the details of these documents are the same. 

Occupancy Certificate

This document is a confirmation from the local authority’s side that the property is constructed as per the approved design. Plus, it ensures that the property can be occupied now.

Building Plan

When the developer starts constructing the property, they get local authority’s permission for the building plan. This ensures that the building doesn’t break any rules and regulations. You are also entitled to get a copy of this plan for any future references.

Encumbrance Certificate

This document presents as proof that there are no outstanding loans or encumbrances on the property. The certificate can also have all the transaction details that were done over some time. 

Possession Letter

The possession letter includes the date from which the developer permits you to control the property as a new owner. It is also one of the loans against property documents required

You may also require some other documents based on the location of the property. You can either ask the developer or the local authorities about the list of those records. 

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