Buying a house involves a lot of steps. Once finalized, there is a lot that needs to be done before actually the house belongs to you. The step one of any buying process is identifying the need and selecting a property according to the prerequisites. Once done, formulate the commercial terms and distinguish clearly between the fixed clauses and the negotiable clauses in your contract.
There are 3 types of properties that you can buy in India- Under Construction, Resale, Primary Sale property (buying from the developer). In all the cases, it is an erudite process to sanction the legal authority of the seller on the property.
Legal formalities can spin heads and get on your nerves if they are not taken care of step by step. That’s exactly why we bring you a step by step procedure of all the legal formalities that you need to do before making the final deal.
- The Land Records
When you want to book a new property, make certain that the builder owns the land where he is propositioning the venture. Land Records give specifics about ownership, rights, commitments and mortgages of the property. You can check land records and history with the Survey Nos.
- The Land Use Certificate
Before mounting any property, a builder wants Land Use Certificate or Change of Land Use (CLU) certificate from the urban authority. Residential projects cannot be fabricated in a moneymaking or industrial zone or on agricultural land.
- The Layout Approvals
Many builders sell properties under soft liftoff without getting outline and building approvals. They will tell you that rates will go up suggestively once all approvals are received. But don’t fall in the bush blindly, let’s face the fact that we live In India and approvals will definitely not come anytime soon and you can get stuck for a long time. You should never invest in a project which has not received approvals. NEVER.
- The Master Plan
Builders and property consultants will often show you upcoming infrastructure projects like Airport, flyovers Metro, subways, Expressway, SEZ etc. on the brochure. Again a word of cautiousness here. A sensible person should not take the decision on the basis of such vague claims. You should most likely cross examine these with the approved Master Plan of the city.
- The No Objection Certificates & Clearances
The builder needs to acquire clearances from Electricity, Water, Fire and Safety authorities and environment clearance etc. Always make sure that the builder has received all the necessary clearances. NOCs are the most important certificate to look up to.
- The Certificate of Commencement
A Certificate of Commencement, provided by the Town Planning Department, is compulsory to originate any construction of a property. This certificate is given only once all other approvals and clearances are attained by the builder.
- The Allotment Letter
After you give away the booking amount, the builder will sign an allotment letter with you. It will mention payment strategy and other important agreement clauses. Before you handover booking amount cheque, make sure that payment plan and other clauses are clear to you. You should ensure that there is a penalty clause for any delay in possession.
- The Builder-Buyer Agreement
Once you pay off 20-30% of basic cost of property, the developer will sign Builder-Buyer Agreement with you. This will be a comprehensive agreement that will have layout plan, detailed specifications & features of the property. It will mention the custody time & penalty amount in case of delay. Make sure that you go through the agreement absolutely before you sign on it.
- The Completion Certificate
Completion certificate is issued by Municipal Corporation once the project is accomplished as per the approved layout plan.
- The Occupancy Certificate
Occupation Certificate is also supplied by Municipal Corporation after ensuring that basic amenities like Electricity Connection, Sewage Connection, Water Supply, etc. are provided as per the permitted plan.
Before you are handed over possession, make sure that the builder has acknowledged Completion Certificate and Occupancy Certificate.
- The Sale Deed Registration
Once the project is thorough in all respects and has received Accomplishment and Occupancy Certificates, the Builder will handover the property in your name by executing a Sale Deed that will be listed at the Registrar’s office. Sale Deed is the foremost ownership document and you should keep it safely and securely. In case of home loan, original copy of Sale Deed will be handed over to the Bank till the time you retire your entire loan.
- The Possession Certificate
Once, Sale Deed is registered in your name, the builder will provide you with the possession certificate after presenting the physical possession of the property.
Ready to Move-in Property
- The Original Title Deed
In a kind of property which is ready to occupy, the first document that is to be seen is the title deed. Settle that the property is in the name of the seller and he has the full right to sell it under his discretion. Always insist on seeing the original deed to make sure that the property is not mortgaged as a collateral anywhere. Never buy a property if the title is not clear.
- The No Encumbrance Certificate
Ensure that the plot or house does not have any lawful dues. Any encumbrance certificate, obtainable from the sub-registrar office where the Sale Deed is registered, states any legal dues and grievances against the said property.
- The NoC from Bank in case of Bank Loan
In case the seller has taken a home loan and the property is guaranteed with a Bank, the trader should take a No Objection Certificate from the Bank or if all dues are cleared, then a No Dues Certificate.
- The Share Certificate
In time of buying a Cooperative Group Housing Society Flat, you should check the original Share Certificate issued by the Society that mentions the name of the owner.
17. The Utility Bills & Tax Receipts
Property taxes are due to the government and are a first charge on the property. Examine latest property tax receipts properly. Safeguard that they carry the seller’s name and that all taxes are paid since the beginning year of possession.
18. The Society Related Documents
At a suitable time, the seller can abridge your visit to the society where you can inspect and examine society registration documents, property card, and occupation certificate and approved layout plans etc.
19. The Possession Certificate
In case, you are buying a property established by a private builder, check the possession certificate and accumulate it at the time of sale deed registration.
20. The No Objection Certificate (NoC) from Society
You will also require to get a No Objection Certificate from the Society affirming that they don’t have any difficulties in transferring the flat to your name subject to all payments and agreements between buyer and seller.
21. The Sale Deed Registration
Once you have squared all property documents, you can make complete payment to the seller. Next, you will have to execute the Sale Deed and get it registered at the Registrar’s office upon payment of suitable stamp duties.
Buying a home gets you with its own perks and long difficult procedures requiring a lot of patience, thoughts and presence of mind so that no hindrance can be caused between you and your dream house and with homesfy, these technicalities become easier and simpler. Legal work can be tedious, where every home buyers falter, we provide one-stop professional and pocket friendly solutions on the same.