When buying a land or house in India, it is crucial to verify several legal documents and approvals to ensure that the property has a clear title and is free from any legal disputes or encumbrances. Here are the essential documents and approvals to be verified during the property purchase process:
- Sale Deed: The sale deed is the primary legal document that transfers ownership of the property from the seller to the buyer. It must be registered with the relevant authority to make it legally valid.
- Title Deed and Ownership Documents: Verify the title deed and ownership documents to ensure that the seller has clear ownership rights to the property.
- Encumbrance Certificate (EC): The EC is an essential document that certifies that the property is free from any financial liabilities or encumbrances. It is obtained from the concerned Sub-Registrar’s office.
- Mother Deed/Parent Deed: The mother deed is the initial document in the chain of title documents that establishes the property’s ownership history from the beginning.
- Building Plan Approval: Check if the building or layout plan of the property has received the necessary approvals from the local development authority or municipality.
- Completion Certificate: For constructed properties, ensure that the seller has a completion certificate issued by the appropriate authority, indicating that the construction has been completed as per approved plans and standards.
- Occupancy Certificate: The occupancy certificate confirms that the building is safe for occupancy and has met all necessary building codes and regulations.
- NOC from Relevant Authorities: If the property is located in a particular zone or requires clearance from specific authorities, ensure that the seller has obtained the necessary No Objection Certificates (NOCs).
- Property Tax Receipts: Check if the seller has paid all property taxes up to the date of sale and obtain tax receipts as proof.
- Khata Certificate and Extract: Verify the Khata certificate, which records the property owner’s name for taxation purposes.
- Non-Agricultural (NA) Certificate: If the land was originally agricultural, ensure that it has been converted into non-agricultural land, allowing for residential or commercial use.
- Joint Development Agreement (JDA) or Power of Attorney (POA): If the property has been developed jointly or through a power of attorney, verify the legality of the agreement and the rights it confers.
- Environmental Clearances: For properties located near environmentally sensitive areas, check if the seller has obtained the necessary environmental clearances.
- Conversion Order: If the property’s land use has been converted, verify the conversion order from agricultural to residential or commercial use.
- Survey and Mutation Records: Obtain the latest survey and mutation records to confirm the property’s boundaries and ownership details.
- Society/Association Documents (for apartments): For apartments, review the society or association documents, including the bye-laws, minutes of meetings, and maintenance details.
- Power of Attorney (POA) Holder’s Identity: If the seller is acting through a POA holder, verify the POA holder’s identity and the validity of the POA document.
- Court Orders and Litigation History: Check if there are any pending court cases or disputes related to the property.
- Property Insurance: If the property is already insured, review the insurance details for comprehensive coverage.
- Sale Agreement and Builder-Buyer Agreement: Scrutinize the sale agreement and builder-buyer agreement to ensure that all agreed terms and conditions are properly documented.
It is advisable to engage the services of a qualified lawyer or legal advisor to conduct a thorough due diligence of all these documents and approvals. A legal expert can help you navigate the complexities of property transactions and safeguard your interests during the buying process.
