We all dream of owning a house, a property of some kind. It is a part of our long-term financial goals, a marker we use to scale our accomplishments. However, fulfilling such big goals can be cumbersome. It takes a lot of efforts and time to secure enough finances to buy a piece of land which we can call our own. And, despite having financial support available in the form of Home Loans and Personal Loans, we are hesitant. 

Buying property is tricky and is not piece of cake. The main challenge is to make sure that the property is credible and the details are authentic. Few questions which you need to ask yourself are – Are the documents original? Is the ownership of the land, on which the property stands, indisputable? It is our most expensive purchase and overlooking it can prove to be a financial disaster. The only way to avoid is to conduct due diligence before you finalize to buy the property. There is a list of property documents which you should check before you seal the deal with your seller to make sure the property is genuine. 

The documents are different for under-construction and ready-to-move-in properties.

For Under-Construction Property

• Check the original land records: Before you purchase new premises, ensure that the dealer owns the land in the location where he is proposing the project. Check the land record which has details about the ownership, rights etc.

• Land use certificate: Before construction of any property, a builder needs the land use certificate from the urban authority which means that a residential project cannot be built in an industrial, commercial, or on an agricultural land. You can seek a copy from your builder before you finalize your decision.

• Layout approvals: Many builders sell properties without getting a layout and a building approval. They will come up with extra charges or conditions once they get your approval. Therefore, it is advisable that you should never invest in a project which has not received approvals. Step back if the builder is avoiding you to show you the document.

• No Objection certificates: It is one of the most crucial documents for direct transfer of under-construction premises. The builder needs to obtain clearance from the electricity, water, fire and safety authorities beforehand.

• Certificate of Commencement: It is the certificate from the concerned authority allowing the builder to begin the construction after ensuring that all set criteria have been met.

For Ready to Move-in Property

• Title deed:  In a ready to move in premises, you must check the title deed of the land i.e. the original document which confirms the ownership of the property. The title deed gives you the full history of ownership of the land. It includes few details about the previous owner, the change in ownership etc. Here, you must be aware of to trace any fraudulent activity. A buyer should check the original deed and confirm that the land is in the name of the developer. 

• Encumbrance certificate: This certificate can be obtained from the registration office. It has all the details regarding the property. Such as, whether it carries any legal or monetary liabilities or has any litigations pending.

• NoC from Bank in case of Bank Loan: In case the seller has taken a home loan or a personal loan for the property or if the property is mortgaged with a Bank, the seller should take a No Objection Certificate from the Bank. This is an important document to obtain as the NOC will certify that your lender no longer has any right of ownership and that the property has been transferred to you.

• Purchase agreement: You should go through this document carefully to make sure it includes everything you were promised. The purchase agreement should contain all major details such as payment terms, penalty fees, project specification etc.