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Buying a property is quite an overwhelming task especially for the first time buyers. You will have to understand so many property jargons and shop around for the best deal. But the biggest burden for many is the documentation at the time of buying a property or investing in real estate. It is extremely important to make sure that all the legal documents are in place before you sign or pay for the house. So, here we will talk about the major documents that should be considered when buying property in India so that you can get a basic understanding about it.

Sale Agreement

This is the first document that is prepared when you go for buying a property in India. This would contain the details of property that you are buying and all the terms and conditions between you and the seller. This also has the final price of the property that the two parties have agreed upon.

Title Deed

This is one of the most important documents relating to a real estate property purchase in India as it is an actual proof of transfer of ownership from the seller to the buyer. The Title Deed or Sale Deed needs to be registered under the jurisdictional authority of the area where the property is located.

Khata Certificate

This may also be known as the extracts from the mutation register and it ensures that there is an entry for the said property in the local municipal records. Banks or NBFCs would also seek this document if you wish to take a home loan for property purchase.

NOC From The Government

When a developer is constructing a property, they have to get several No Objection Certificates (NOC) from several government bodies such as the Pollution Board, Traffic Department, Sewage Board, etc. These NOCs ensure that the property is being legally constructed without violating any regulations. When buying a property from a builder, you should ask for a copy of these and keep them with you for future reference.

Property Tax Receipts

It is also important to ask the seller for property tax receipts or house tax receipts for at least the last 5 years. These receipts establish previous ownership of the seller as well as make sure that there is no tax dues pending on the property.

Encumbrance Certificate

In simple terms, encumbrance refers to a mortgage or other claims on the property. An encumbrance certificate ensures that the said property is free of all such burdens or loans. This document is extremely important when seeking a home loan.

Occupancy Certificate

Also known as a completion certificate, this document establishes that the property is constructed as per the regulations and is now ready to be occupied. You must ask the seller for this document and keep it in your records.

Allotment Letter

When you buy a property in an apartment project, an allotment letter is sanctioned which contains all the details of the property along with the details of any amount outstanding with respect to the said purchase. This document plays a major role in home loan sanction and is not the same as the sale agreement. An important point to note here is that the allotment letter is issued only for the first buyer of the property. If you are purchasing a resale property, you will get a copy of the same

Payment Receipts

You must collect all the original receipts for the payments that you have made to the builder for this purchase. Banks need to check these receipts for home loan sanction. If you are purchasing a resale property, you must get the copies of the original receipts.

Power of Attorney

If the current seller is working on behalf of the original owner on his authorization, documents specifying the same should be produced at the time of sale