Tired of staying in a rented flat? Has it always been your dream to own a house of your own? Well, you cannot take a chance just like that! You have got to consider a number of factors, assess them minutely and then only lock the deal. True to the proverb “haste makes waste”, the faster you take the decision, the more is the chance to get dwindled. With real estate prices being the most unpredictable thing in this domain, you should always act smart, wise and intelligent. You cannot just bump into a certain property and finalize things on the spur of the moment. You should always make sure that you have cross checked all the relevant documents before confirming the covenant.
Here is the list of all the important deeds you need to check before purchasing a property.
The approval plan- The home you are going to buy should always be approved by the municipal corporation. If not, there can be a number of discrepancies in future and in order to avoid this scenario, you should always be in lieu with all the terms stated by the Government. You should keep a keen eye on the fact that all the documents are properly indexed with the concerned authority and this is how you can pave the way towards getting the best value for your money.
Encumbrance Certificate: It certifies that the property which you are about to buy is free from all legal dues.- The house you have planned to purchase may have been at stake, in case it is kept as a mortgage. It becomes your sheer responsibility to check if the property you are heading to is free from all the litigations.
Title Deed: Title Deed of the property confirms that the builder or seller has the complete right to sell the property. One should not only be dependent on a NOC (No Objection Certificate) from the panchayat or local body but should also consult a lawyer to examine the title deed.
Land Use: One should always acquire the master plan from the local body office in the respective city to verify the land-use zone as per the city master plan for the plot.
Property Tax Receipts: If the property you are planning to buy is in resale don't forget to check previous property tax receipts from the previous owner/ seller along with other bills.
Infrastructure Plans: The property can get great investment returns if there is any big infrastructure development planning by the government such as Metro.
Commencement certificate: This is a certificate issued by the local authorities to the builder that legally allows him to actually start the construction work.
Intimation of Disapproval (IOD): A set of permissions that must be obtained by the builder such as acquiring approvals and NOC form various departments including Storm water and Drain Department, Sewage Department, Forest Department, Environment Department, traffic and Coordination Department, Chief Fire Officer, Airport Authority and Pollution Board etc.
Building completion certificate- The home should always adhere to all the legal norms of construction. It should always be at a certain distance from the road so that it would be suitable for habitation. There are also quite a few regulations as regards to the height of the construction which is approved for the building plan, so that you don’t have to confront any divergence in future.
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Possession certificate- This is one of the most important deeds you should always test out before buying a new home. An apartment can get a valid occupancy feat only when it has the mandatory water, plumbing, and electrical connections. At the same time, a building should always be constructed as per the building layout approved by the Government. The occupancy certificate can only make a construction valid and as a responsible home buyer, you should always verify all the documents before you come up with a final decision.
Conversion Certificate- The property you are going to buy might have been agricultural land before and if yes, then it becomes your utmost accountability to get a conversion certificate stating the fact that the land has been certified to be used from agricultural to non-agricultural purpose. Your home should always be constructed on a land that is perfectly converted maintaining all the guidelines stated by the Government.
Once the deal is done do not forget the below activities:
After the agreement is drawn, have it checked with the lawyer for any loopholes.
Do not delay registration of the sale deed after signing it.
Ask for issuance certificate after the society is formed.
Contact tax consultant to explain tax liabilities to you.