Purchasing real estate is one of your life journey’s most tricky but essential milestones as it impacts your investment. Once you’ve decided on the ideal location for your new home, the next most important step is to complete the legal verification of documents. If the property records are questionable or fudged, your dream home can become a far-fetched dream. You must ensure that the records are clean and straight, no matter how nice and charming the new house is.
Legal verification ensures that there will be no litigation and that your investment will be safe. Although it is acceptable to seek professional assistance, it is advised that you take the initiative to study and verify the documents on your own. It can be difficult for a layman to understand and analyse property documents with legal jargon. You would most likely be hearing some jargon for the first time.
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To simplify it for you, this article has collated the mandatory checklist that might be helpful for you while verifying your property documents without a lawyer.
Know your Seller: Before verifying the documents, you need to know who you’re dealing with. Determine that person’s identity clearly using a PAN, Aadhaar card, etc. It becomes pertinent to examine the seller’s track record and the properties he has previously dealt with. Look for press and social media reviews. Getting feedback from previous customers as well serves well in finalizing your decision.
Title Deeds: This is the primary document that must be verified and confirmed. You must ensure that the seller has full authority to sell the property and that he or she is the valid owner. Examine previous transactions to see how many times the property has changed hands. You can verify the legitimacy with the local municipal office. In order to confirm that the property is free of any mortgage, loan, or debt, request an encumbrance certificate (EC). You can obtain the EC by submitting an application to the Sub-registrar’s office.
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Tax Receipts of the property: Every property owner is mandated by law to pay tax every year on his land & house property. By checking the property tax details, you can again confirm the ownership and ensure that no statutory dues are pending against the said property. The tax payment should be regular & up to date.
Approval of the Layout & Building: If you are purchasing a plot of land, make sure that the appropriate authorities have approved the layout. Check that there are no significant deviations from the approved plans for apartments and built properties. Only after the land has been converted for residential use should construction begin. Another critical document for flats and apartments is an occupancy certificate (OC). It certifies that the aforementioned structure is fit and suitable for occupation. After verifying several documents from the developer, the local municipal corporation issues OC to the building. In addition, the builder should obtain all necessary NOCs from government agencies.
Sale Deed: The seller effectively transfers ownership to the buyer through this document. A well-drafted sale deed avoids confusion and protects both parties’ interests. It must include the personal information of both the seller and the buyer. Exact property information, such as location, land survey number, property dimension, the amount involved, and so on, must be provided.
Possession Certificate: This is a document issued by the developer stating the details of payment and the date on which the property shall be handed over to the buyer. Possession certificate is mandatory to move into the property or make use of the property as it signifies that the possession of the property has shifted from one place to another.
