Purchasing real estate is a big and serious investment. Any mistakes made along the way could cost you a lot of money, time and mental peace. Due caution must be taken by the buyer when reviewing the property documents before proceeding with the purchase.

Experts encourage aspiring buyers to be informed of specific rules and regulations before making their purchasing selections. New home buyers need to be well-versed in the documentation necessary for the home-buying process. When applying for a house loan, purchasers must not only provide information and documentation to the bank and the government, but they must also verify specific paperwork to make sure they have a clear title to the property and all necessary government permissions. In this blog, we’ll explore various documents that a potential homeowner would need and what documents required for loan against property.

1. Understand the developer

Get a firsthand understanding of the construction project. It’s usually ideal to speak with existing homeowners with the developer and ask questions. This would help you understand customer satisfaction and various other services the developer offers. Your top consideration should be safety precautions, especially if you’re buying in a high-rise structure or a project with numerous buildings where many people will be staying. A professional should ideally be consulted to verify that the appropriate evacuation procedures are in place in case of emergency, such as elevators, wide stairwells, and ground clearance for the fire department and ambulance. These can also be checked with property survey, house construction permission and many more documents that determine the trend of the developer.

2. Must be RERA Approved 

Developers are required under the RERA Act to register their projects with the organization created by the Act. It is recommended for a homebuyer to purchase a property in a development covered by the RERA Act to confirm that the property has been registered with the agency. Information on cases, complaints, and any defaults by the developer of the project is also published on the official RERA web page for each state. This information helps buyers make informed decisions by giving them important insights into the developer’s trustworthiness and the project.Buyers should be aware that in order to do business lawfully, the law requires that all real estate agents register with the state’s RERA. Therefore, only engage a property broker after getting confirmation of his/her RERA Act registration. Also keep in mind that agents must regularly renew their RERA registrations.

Top apartment builders like Pavani Group make sure every development project is a RERA approved project that ensures safety and comfort for homebuyers in accordance with the state law.

3. Construction Approvals

There are various documents to be checked before purchasing any kind of real estate. Carefully checking various house construction permissions from local, statutory, and regulatory authorities that are very important. This also ensures you understand what documents are required for a loan against property

Various facilities like water, sewage, electricity, environmental clearance, fire safety approval, etc should have standard approvals that are mandated by law. This ensures there’s uniformity and regulations in place to ensure consumer rights and satisfaction. To get the “intimation of disapproval,” or initial permission needed for building construction, it is essential to ask the builder for copies of NOCs from several departments, including the Pollution Board, Environment Department, Sewage Board, and Traffic and Coordination Department.

4. What’s an Occupancy Certificate?

An Occupancy Certificate (OC) is required for homeowners to formally establish the ownership of the residence. Because a project is considered to be an unlawful building without an OC, the local municipal body has the power to take legal action in the absence of a valid OC for a property.

When you apply for a home loan, purchasing a property or are selling the property, an OC will be needed as a part of property legal verification. This is to show that the property is is suitable for possession and to establish the ownership right.

Since this is a part of verification of property documents, the purchaser may register a complaint in the consumer forum and pay an application fee if the builder refuses to produce the OC. The builder should be served with a notice requesting that he deliver the OC certificate within a month. RERA allows buyers to file objections about occupancy certificates. For RERA-registered projects, they can submit their complaints on the state’s official RERA website.

5. Sale documents to check

The quantity of verification of property documents will increase if you finance the acquisition with a house loan. If you are applying for a house loan, you will need to present the property documents to the bank; otherwise, if you are purchasing it outright, you will be given the documents in your name. Here are a few legal documents you’ll need to purchase property:

  • Property tax receipt: Check the status of tax payment by the developer or previous owner. This invoice serves as proof of the legal paperwork needed to purchase real estate. Make sure there are no pending dues as they could be a significant amount to repay along with fines.
  • Sale deed: This is the main legal document that establishes your ownership of the property you are purchasing. Therefore, when you legally register the property, you must prepare the original copy of this paper and submit it in the sub registrar’s office in your neighborhood.
  • Sale agreement: It includes all the pertinent data regarding the property you are purchasing, including the payment schedule, the date of possession, the features, the specifics of the common areas, the amenities, and the general terms and conditions. The developer is responsible for the property’s construction under this arrangement and you must have the original document in order to buy the house and get a home loan.
  • Allotment Letter: This allocation letter, which includes the specifics of the property and the sum paid by the buyer to the developer, is issued by the developer or the housing board. It shouldn’t be confused with the selling agreement. A sale agreement is handwritten on stamp paper, whereas an allotment letter is printed on the authority’s letterhead. The initial owner of the property receives an allotment letter, and all subsequent owners are obliged to get a duplicate of the original letter from the seller.
  • Possession Letter: This is one of the legal documents that the developer would give the buyer in order to purchase property in India. The date on which the developer would transfer ownership of the property is mentioned. You must present the original copy of this letter if you are financing the purchase of the property.
  • Payment receipts: You must obtain the original payment receipts from the developer when purchasing a new home. If the property was previously owned, you can request a copy of the seller’s receipts to give to the bank.

6. Check Building Plan

Another document that has to be double-checked before a property acquisition is the building plan. A building plan is often authorized by the neighborhood municipal body. This document, which is often referred to as a site plan, will show the arrangement of the project’s equipment and utilities. This is usually acquired after property surveys by regulatory bodies. 

Buyers must confirm that the building’s or project’s design has received proper local authority approval. Any extra or unauthorized building stands the danger of being destroyed or refused occupancy in the future.

Some of the top apartment builders in South India always ensure these basic documents are up to date. Pavani Group always makes sure that various regulatory mandates are met before handing the property to the new homebuyer. We believe providing quality and peace of mind to our homeowners is the best way to build trust amongst our community. Reach out to our offices to understand how we can help you purchase your new home.

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