Tag: Legal Expert for home buying

Legal Expert is a Must for Checking Documents While Buying a Home

Legal Expert is a Must for Checking Documents While Buying a Home

Buying a home, unlike most of our every day and often impulsive buys, entails bigger and long-term financial investment and commitment. Property transactions involve time, money and concern on part of the buyer. Property transaction in our country is a document-intensive exercise because of all the complex statutory, regulatory and legal frameworks involved in the process.

A legal expert in his/her professional capacity will be able to guide you – a buyer – into the right direction and help make a legal fool proof and informed decision while purchasing a property.

The following list of legal documents will give you a clear idea about the credentials you and/or preferably your legal advisor will check before finalizing the deal. The particular laws regarding the sale of a property might slightly vary from different states and case to case; however, in general, these documents and permissions remain mandatory and critically important.

Title deed / Sale Deed / Conveyance Deed / Mother Deed

The sale deed or title deed is ‘the’ most important legal property document. This document is the evidence and establishes the proof of ownership of the seller of the said property. It establishes whether the seller has the right to sell the property and the autonomy to transfer ownership. This mandatory document is required in original and if you are purchasing a resale property, all previous title deeds are required in the original. You will need to verify the authenticity of the owner and for availing a home loan. Unless you are familiar with legal parlance and their interpretation, it is always advisable to get the sale deed reviewed by a legal expert.

Intimation of Disapproval (IOD)

This set of documents include permissions that need to be obtained by the developer at different stages of construction. This would consist of approvals and No Objection Certificate (NOC) from at least 19 key government departments ranging from Pollution Control Board, Sewage Department, Electricity Department, Storm Water and Drain Department to Fire and Safety, among others. These documents are mandatorily required by the buyer to ensure that all Government approvals are in place.

Building and layout plan sanctioned by the Statutory Authority

To establish whether a particular property is authorized or not, the building plan must be approved by the statutory authority. The developer should have necessary permissions for construction of the building according to the rules and regulations. Appropriate planning authority also must approve the layout plans of the property. Homebuyers need these documents and exercise caution because there have been instances when developers differed from approved layouts, by reducing open area or adding the extra floor.

Commencement Certificate (CC)

A ‘Certificate of Commencement’ is mandatory for the builder to legally commence any construction of the property. This certificate is issued by the local authority of town planning and engineering department upon inspection of the primary foundation for the superstructure and building boundary.

Encumbrance Certificate

Obtained from the registration authority i.e., the sub registrar’s office, this certificate clarifies whether the property comes with any monetary or legal liability or has any litigation pending. The encumbrance certificate goes as far back as 30 years and confirms whether the property is in the name of the individual who is selling it.

Sale Agreement

This agreement includes contains all important details of the projects including tentative date of possession, payment terms, project specifications, etc. The sale agreement between the builder and first owner contain the builder’s liability to construct the project according to the plan and specification approved by local authority.

Unless you make sure to receive all pertinent and complete series of property documents during the time of purchase, you will struggle with necessary documentation if you ever plan to sell the property.