Investing in property requires a significant amount of capital. Furthermore, it involves a lot of paperwork. Before buying a property, the buyer must exercise caution and thoroughly examine all their property documents. The same applies to Home Loan requirements as well. Any mistakes made during the process can lead to considerable trouble for the buyer.
Proper documentation is required for buying a house successfully. Here is the list of documents needed for purchasing a home.
List Of Important Documents When Buying A House
Sale Deed
The sale deed is a crucial document needed for property acquisition, as it confirms the ownership and title of the property. It also helps you to get the best housing loan interest rates, without any hassle.
To register the sale deed, you must present the original copy at the Sub-Registrar’s Office where the property is situated.
Khata Certificate
Known by various names in different states, the khata certificate or extract is an essential document for registering a new property and transferring ownership. It verifies that the property is recorded in the local municipal records and was constructed following an approved plan. Banks require this document before approving a Home Loan.
Payment Receipts
For a new property, it is essential to collect the original payment receipts from the developer. In case of a resale property, ask the seller for a copy of the tickets to be submitted to the bank as payment proof.
Property Tax Payment Receipts
Property owners must pay taxes. Before investing in a property, ensure that the previous owner has cleared all the dues. Property tax receipts serve as proof of the legal status of the property. They are also a significant part of Home Loan requirements.
Certificate of Encumbrance
Banks require an encumbrance certificate to ensure the property is free from legal dues or mortgages. This certificate contains transaction details that happened over a certain period. Additionally, Form 15 is issued if a property has registered encumbrances, while Form 16 is given if there are no encumbrances.
Certificate of Completion
To obtain a Home Loan, a completion certificate is required to prove that the building was constructed according to an approved plan.
Certificate of Occupancy
The local authority issues an occupancy certificate to the developer. The certificate indicates that the building is ready to be occupied and its construction adheres to the authorised plan.
Mutation Register Extract
The mutation register extract is mandatory for Gram Panchayat properties. It provides previous ownership details. Although not necessary in its original form, you must present this document when purchasing a property under Gram Panchayat jurisdiction.
9. Power Of Attorney
The general power of attorney establishes whether an authorised individual is conducting a sale or purchase of a property on behalf of the owner. To obtain a Home Loan, you must check your home loan eligibility.
10. Building Plan Copy
It is essential to obtain a copy of the building plan approved by the statutory body to verify that the property’s construction adheres to the established rules and regulations.
11. No-Objection Certificates (NOCs)
Developers must acquire as many as 19 NOCs from various authorities while building a housing project, depending on state-specific regulations. You can request copies of these NOCs from your developer and keep them for your records.
12. Allotment letter
An allotment letter is an essential document required for obtaining a Home Loan. It is issued by the developer or housing authority and provides details of the property description and the amount paid by the buyer. Furthermore, the original allotment letter is issued to the first owner, and other owners may request a copy from the seller.
13. Sale Agreement
The sale agreement contains essential information about the property, such as terms and conditions, possession date, payment plan, specifications, etc. It holds the developer responsible for property construction and must be presented in original form when purchasing a property or obtaining a Home Loan.
14. Possession Letter
A possession letter is provided by the developer, specifying a date on which the buyer will receive possession of the property. The original copy of this document must be presented when obtaining a Home Loan.
Conclusion
Having proper documents before buying a home is crucial as it establishes legal ownership of the property and helps to avoid any legal disputes in the future. These documents are also beneficial as they clearly represent the property’s status, construction, and ownership history.