Basic Things To Be Checked While Buying Property:: Here Is The List of Documents Required
Basic Things To Be Checked While Buying Property:: Here Is The List of Documents Required
Basic Things To Be Checked While Buying Property:: Here Is The List of Documents Required
1. Name & title of Land should be very clear in the name of seller
2. Check whether the seller obtained Loan for that property, accordingly a paragraph in sale deed to be added
saying that the seller is responsible to clear all the dues
3. Ask for Moola pathram/Parental Documents
4. All major children ie., major children of Sons & Daughters should sign in the bond/agreement
5. Municipal tax dues/Water tax dues/Land Revenue dues & any other dues to be paid fully before the
transaction
6. Villangam & Viharam nothing has to assured. In case, of above and any hindrance to property the seller will
clear the issue and dues on his own accordingly a paragraph to be included in sale deed
7. Obtain No Encumbrance certificate from concerned authorities.
8. Mention the Flat No & Plot No in South/East/West/North/Complete Land area Length/Breadth and
Diagonals also in the Sale deed.
9. Check on TNEB charges and dues
10. Check whether the property is in seller name or is it with Joint venture development
11. Sellers any of the blood relation should not claim in future & if any claim arises then it will be sole
responsibility of the seller to get involved and clear all such disputes.
12. Get the identity and address proof of the seller
13. Obtain all payment receipts, Patta , Chitta ,Adangal extracts ,Up to date tax payments receipts of
Water/TNEB/Property/Corporation/Municipality/Revenue & other taxes etc.
14. Confirm the originality of stamp papers and only purchase stamp papers from Govt services ie.,
Registration of Assurance offices only
15. Date of purchase of stamp papers must match with the date of the documents Most important
16. Obtain Genealogical tables (family tree) of the seller, will, certificate of husband/wife and other inter
connected all documents although the above many not be required for registration
17. Crystal clearly shows door no/flat no/plot no and other descriptions of the property
18. Check if any third party interests, suppression of previous transaction, prior agreements if any, litigation and
other pending matters, which are brought to light during various stages of purchase /negotiation
2. Mother Deed:
Mother Deed, also known as the parent document, is an important legal document that traces the origin/antecedent
ownership of the property from the start (if the property has had various owners). It is a document that helps in the
further sale of the property, thereby establishing the new ownership. In case of absence of the original Mother
Deed, certified copies should be obtained from the registering authorities. Mother Deed includes the change in
ownership of the property, be it through sale, partition, gift or inheritance. It is very important that the Mother Deed
records the references to previous ownership in a sequence and should be continuous and unbroken. In case of a
missing sequence, one should refer to the records from the registering offices, revenue records or the recitals
(preamble) in other documents. The sequence should be updated until the current owner.
assessment registrar. It is needed while property buying and acquiring trade license. The Khata is widely referred to
as A Khata and B Khata (Revenue records extract). A Khata has properties listed under BBMP jurisdiction with
legal property construction and B Khata has properties under local jurisdiction with violated property constructions.
One should avoid buying a B Khata property as it will be deemed as an illegal construction. Nevertheless B Khata
may be converted to A Khata under certain schemes by paying penalty to the Government.
1. Title Deeds
First and foremost, check the title deed of the property which is being purchased. Confirm whether the property is in
the name of the seller and the rights to sell the property lies with only him and no other person is involved in it.
Dont satisfy yourself with the copy of the title deed. Insist on seeing the original deed. Sometimes the seller may
have taken a loan by pledging the original deed. It also needs checking whether the seller has permitted any
access to others through this land and whether any other fact has been left undisclosed by the owner of the land.It
is better to get the original deed examined by a lawyer. Along with the title deed, the buyer can also demand to see
the previous deeds of the land available with the seller.
2. Tax receipt and bills
Property taxes which are paid to government or municipality are a first charge on the property. Hence, enquiries
must be made in government and municipal offices to ascertain whether all taxes have been paid up to date. The
owner should also possess the latest tax paid receipts, which you may inspect. While investigating in different
departments of the municipality, you need to ascertain whether any notices or requisitions relating to
the property have been issued and are outstanding and not yet complied.While inspecting the property tax receipt,
it can be noted that there are two columns in the tax receipt. Make sure that the name entered in the owners
column is correct. The second column will be for the name of the one who paid the tax. Sometime the owner may
not have the tax receipt with him, in such cases, contact the village office with the survey number of land and
confirm the original owner of the land. If you are buying a house along with the property, then the house tax receipt
should also be checked. Also make sure water bills and electricity is been paid up to date and if there any is
balance payment to be made, ensure that it is made by the seller.
3. Encumbrance Certificate
Before purchasing the land or house, it is important to confirm that the land does not have any legal dues. Check
the Encumbrance Certificate issued by the sub register office where the deed has been registered, stating that the
said land does not have any legal dues and complaints.
4. Pledged land
Some people may have taken loan from the bank by pledging their land. Ensure that the seller has paid back the
entire amount due. Dont be satisfied with the receipt of the payment made. Release certificate issued by the bank
is necessary for all the debts over the land. You could buy a land without the release certificate. But if you want to
take a loan in future, the release certificate is a must.
5. Measuring the land
It is wise to measure the land before registering property in your name. Confirm if the measurements of the land are
accurate. You can do this with the help of a recognized surveyor to avoid problems in the future. You could also
take the Survey Sketch of the land from the Survey Department and compare for accuracy.
better to get the original deed examined by a lawyer. Along with the title deed, the buyer can also demand to see
the previous deeds of the land available with the seller.
Do not buy a property if the title of property is not clear. If title is not clear or marketable it will cause problem in
future and financial institutes refuse to finance on such properties. You can either seek assistance of your lawyer or
approach financial institutes to know whether the title of the property is clear. Your property title confers the owner
of the property.
Documents
Ensure that seller of property has all documents relating to property. If possible ask for copies of original documents
and get them verified by your legal advisor or lawyer.
Encumbrance Certificate
Before buying any land or house, it is important to confirm that the land does not have any legal dues. It is available
as a certificate called encumbrance from the sub registrar office where the deed has been registered, stating that
the said land does not have any legal dues and complaints. The encumbrance certificate for the past thirteen years
should be taken or for more clarification, you could demand 30 years encumbrance certificate to be checked. If you
still have anymore doubts, you can take a Possession Certificate of the ownership of the particular land, which is
available from the village office.
Approved layout
Get copy of approved layout for the building from your builder or seller of property. Ensure that building plan and
construction is approved by the authorities and property is listed in government register.
Ensure property is free from debt and liabilities
Ensure you are buying a property which is free from debts and all taxes are paid in time. If seller of property has
taken any loan or advance on the property, ensure they are paid off and ask them for documents or copies to show
that property is debt free.
Tax receipt and bills
Property taxes which are due to the government or municipality are a first charge on the property and, therefore,
enquiries must next be made in government and municipal offices to ascertain whether all taxes have been paid up
to date. The owner should also possess the latest tax paid receipts, which you may inspect. Enquiries should also
be made in various departments of the municipality to ascertain whether any notices or requisitions relating to the
property have been issued and are outstanding and not yet complied with.
While inspecting the property tax receipt, it can be noted that there are two columns in the tax receipt. Make sure
that the name entered in the owner's column is correct. The second column will be for the name of the one who
paid the tax. Sometime the owner may not have the tax receipt with him, in such cases, contact the village office
with the survey no. of the land and confirm the original owner of the land. If you are buying a house along with the
property, then the house tax receipt should also be checked. Also ensure that the electricity and water bills are upto-date and if there any is balance payment to be made, ensure that it is made by the seller.
Intimation of disapproval (IOD)
IOD is set of instruction given by respective authorities for builders to construct the building. Normally it is valid for a
period of one year and if the building is not constructed within one years time, IOD has to be reissued.
Water and power supply
Ensure that property you are buying has adequate water supply and there is no problem of power such as voltage
fluctuation, power shortage etc. Voltage fluctuation can damage your home appliances. Ensure the availability of
water and power supply.
When buying a property ensure that there is no claim on the property by authorities or government and check
whether land is designated for the residential purpose. Before buying the property ensure you have good neighbors
and check the reason for selling the property. Make good market research and seek experts service for making
your decision.
COMPLETION AND OCCUPATION CERTIFICATES
Once the constructions complete and over, builder will get completion and occupation certificates from the
Municipal Authorities, which indicate that the building has adhered to municipal requirements.
Building Completion Certificate: This certificate is issued by Municipal Authorities showing whether the building
complies with the rules of building height, distance from road, and whether it is built according to approved plans
and is ready for habitation.
Occupation Certificate: This certificate is issued when the building is ready for occupation after water, sewage
and electrical connections are complete. An original copy of the Occupation Certificate by the Municipal Corporation
of the locality is mandatory. It is vital in the sense that this document confirms the possession to the buyer legally;
otherwise a mere handing over of the possession will stand null and void, in case a dispute arises
What are the important documents one should check before buying any property?
If you want to purchase a property, you must see the approved layout plan, approved building plan, ownership
documents, carryout search, etc. Consult an advocate before you purchase a property so that he can advise you.
What is the difference between built up area, super built up area, and carpet area?
Carpet Area: This is the area of the apartment/building, which does not include the area of the walls.
Built up Area: This is the area of the apartment/building which includes the area of the walls also.
Super Built up Area: This includes the built up area, along with the area under common spaces such as the lobby,
lifts, stairs, etc.
This term is only applicable to multi-dwelling units.
Who is liable to pay Stamp Duty-the buyer or the seller?
The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary.
In whose name are the Stamp Papers required to be purchased?
The stamp papers are required to be purchased in the name of any one of the executors to the Instrument.
What is meant by the market value of the property and is Stamp Duty payable on the market value of the
property or on consideration as stated in the agreement?
Market value means the price at which a property could be bought in the open market on the date of execution of
such instrument. The Stamp Duty is payable on the agreement value of the property or the market value whichever
is higher.
Which are the instruments that attract the payment of Stamp Duty?
The instruments that attract Stamp Duty on market value of the property are:
Agreement to Sell
Conveyance Deed
Exchange of property
Gift Deed
Partition Deed
Power of Attorney settlement and Deed
Transfer of lease
Who is the appropriate authority for knowing the market value of the property?
The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing
the market value of the property. In addition to this, financial institutions do also assess market value of the property
through their own empanelled valuation agencies
Is a POA revocable?
Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made.
What exactly do we mean by a Free Hold property? What are the advantages and disadvantages, if any?
A freehold property (plot or a property) is one where there is a whole and sole owner(s), ownership is full and
unconditional (within the provisions of the laws of the land) and there is no lessor/lessee involved.
How to convert a POA property into a Free Hold?
POA cannot be converted into anything. Leasehold properties of DDA in Delhi can be converted to freehold, as per
provisions.
How to verify the authenticity of the various documents submitted by the seller of the property, particularly
with regard to the possibility that the property has not been sold earlier to a third party?
Regarding authenticity of documents, again, you have to take the help of an advocate.
I want to gift a property in a Co-op Hsg. Society. What are the legal formalities? What about stamp duty?
Gift of an immovable property is considered as a transfer under the provisions of the TOP Act and you have to
have the transaction registered through a Gift Deed and pay stamp duty as per provisions of the relevant States
Stamp Act depending in which state the property is situated.
Upon buying a property from a builder in a building under
construction, what are the permissions and papers that one should check with the builder, so as to
ascertain the genuinity of the builder?
When you are buying a property from a builder in a building under construction, you have to check the following:
1. Approved plan of the building along with the number of floors.
2. Ensure that the floor that you are buying is approved.
3. Check if the land on which the builder is building is his or he has authority under an agreement with a landlord.
If so, check the title of the land ownership with the help of an advocate.
4. Check the building by-laws as applicable in that area and ensure that the builder is building without any
violation of front setback, side setbacks, height, etc.
5. Check specifications given in the agreement to sell of the sale brochure. Is he providing the same actually on
the ground or not?
6. Check the reputation of the builder.
7. Ensure that urban land ceiling NOC (if applicable) has been obtained or not.
8. Permissions from water and electricity authorities also have to be obtained.
9. Permissions from lift authorities and other Government agencies as applicable.
properties. The buyer should ensure that the title deed is in the name of the seller who is selling the property. The
title deed will also confirm that the rights to sell the property lies with the seller and not with anyone else.
Sometimes the seller might give a photocopy of the title deed but the buyer should insist on seeing the original title
deed. If the seller has pledged the land due to a loan, the title deed would be with the bank. In such cases, the
seller might be able to show photocopy of the title deed. However, he would not be able to produce the original title
deed which might imply some possible problems with the property.
In addition to the original title deed, the buyer should also ask for all previous title deeds. These documents should
be verified for any possible issues.
Some of the documents that are required to get the title deed are site allotment notice, sale deed, intermediate sale
deeds, encumbrance certificate, tax paid receipts, registration certificate and possession certificate.
The procedure for obtaining title deed is mentioned below:
1. The buyer needs to submit an application for the title deed to the urban development authority. Ensure that
you have a photocopy of the sale deed while applying for the title deed.
2. You might need to obtain the Encumbrance certificate before applying for the title deed. In some states like
Tamil Nadu, you can apply for the EC online. If you want to read more on it, click here.
3. You would need to obtain the lease cum sale document allotted to the original allottee.
4. Next, the buyer needs to obtain a transfer certificate . This certificate will be provided after a site
inspection.
5. After doing the above mentioned work, a title deed will be issued in the property owner's name. The
applicant needs to pay the stamp duty and then, the property is registered at the sub-registrar's office.