Buying a new house has got to be one of the most ‘complex’ processes, mainly because no ever can ever be too sure if everything is in place. We have already covered a basic checklist before purchasing property, this article will focus on the most important documents that cannot be given a miss.

1. Sale Deed

Sale Deed, being the core legal document, acts as proof of sale and transfer of ownership of the property from the seller to the buyer. It has to be mandatorily registered. One should execute the sale agreement and should check for compliance of various terms and conditions as agreed upon between the buyer and the seller prior to execution of the deed. The buyer should also check whether the property has a clear title and confirm if the property is subject to any encumbrance charges.

2. Mother Deed

Mother Deed - the parent document, is an important legal document that traces the ownership of the house from when it was first built (only if the property has had multiple owners at different time periods). Having a mother deed becomes helpful in further sale of the house, thereby establishing you as the new owners. Certified copies should be obtained from the registering authorities in case the original document can’t be obtained. The Mother Deed must have the references to previous ownership in a sequence that should be continuous and unbroken. The sequence should be updated until the current owner.

3. Building approval plan

A building plan is sanctioned by the city’s Development Authority or Mahanagara Palika without which the construction of the building would be illegal under city’s Municipal Corporations Act. A building owner has to get an approved plan from the jurisdictional Commissioner or an officer authorized by such Commissioner. A set of documents are required to be submitted by the owner in order to obtain a building approval plan. One can get a building approval plan within 4-5 working days if all the requirements are met.

4. Khata Certificate and Khata Extract

Khata is an account of the person owning a property. It usually includes:

Khata Certificate: A Khata Certificate is mandatorily required for the registration of a new property and the transfer of a property

Khata Extract: Khata Extract is nothing but obtaining the property details from the 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). 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.

5. Encumbrance Certificate (EC)

The encumbrance certificate is a mandatory document used in property transactions as an evidence of free title or ownership. When buying a house, flat or plot, it is important to verify that the property does not have any monetary or legal dues. And encumbrance certificate (EC) ensures that there is a complete ownership of the property without any monetary or legal liability. The EC for property can be obtained from the sub-registrar’s office where the particular property has been registered. The time taken to obtain an EC will be between 3-7 working days or more depending on the period sought.

6. Betterment charges receipt

Betterment charges are improvement fees or development charges that are to be paid to the Mahanagara Palika before a Khata can be issued. Currently the developers are entitled to pay a fixed amount as betterment charges to the municipal body. A receipt of the same should be obtained at the time of property buying.

7. Power of Attorney (POA)

A POA is a legal procedure used to give authority to another person by the property owner on his/her behalf. One can either give a Special Power of Attorney (SPA) or a General Power of Attorney (GPA) to transfer one’s rights over one’s property which happens to be the main aim.

8. Latest tax paid receipt

Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the government/municipality. For properties falling under the Mahanagara Palika’s jurisdiction, it is mandatory for property taxes to be paid up to date so a buyer could get a Khata issued in his name. The buyer should ask the seller for the latest original tax paid receipts and bills and check the details of the owner’s name, the tax payer’s name, and the date of payment on the receipt. If the owner does not have the tax receipt, the buyer can contact the municipal body along with the survey number of the property to confirm the ownership of the land. Nevertheless, the buyer should also ensure that other bills such as the water bill, electricity bill etc. are paid up-to-date to avoid inconvenience to oneself.

9. Completion Certificate (for a constructed property)

A Completion Certificate is issued by the municipal authorities stating that the building is in accordance with their rules in terms of height, distance from the road, and is constructed as per the approved plans etc. This document is important at the time of purchasing a property and seeking a home loan.

10. Occupancy Certificate (for a constructed property)

When the builder applies for this Certificate, an inspection is carried out by the authorities to ensure that the construction meets all the specified norms. This certificate is obtained after the completion of the construction. It is important at the time of buying a property, seeking a home loan, before the builder allows people to take possession of the property and, for the transfer of Khata. Basically, it certifies that the project is ready for occupancy.