Top 10 property documents to check before buying your dream home

When buying a home for the first time, the journey is often filled with eagerness, thrill and a fair share of paperwork. Since a home is one of the biggest investments in a lifetime, it can come with its fair share of pitfalls, especially if the paperwork isn't in order. There can be legal disputes, unprecedented delays causing financial losses, or even difficulty in obtaining loans if home buyers don't have all the property documents for their home. Along with completing all the other formalities, it's important to see if all the documents are verified, up-to-date, and free from legalities for a lifetime of peace of mind.

From the sale deed vs. title deed to the occupancy certificate, here are the top 10 property documents owners must check and verify before buying and moving into their homes.

Title deed

Like the name suggests, it establishes the property's ownership. It must be clear and free from legal issues, disputes and encumbrances. While buying pre-owned properties, home buyers will need a mother deed that mentions the chain of ownership records. Every buyer must verify the title deed and ensure that it is marketable and clear before finalising the property. 

Sale deed

One of the highly important property documents is the sale deed. It is proof of the sale, mentioning party details, property details including location, proof of payment of consideration and registration details. A sale deed must be registered within four months from the execution date; otherwise, it is considered invalid. Furthermore, it should be registered in the sub registrar's office and is an essential document for future property sale.

RERA registration certificate

Imagine finding a dream property - it checks all the boxes, it's in the perfect location and fits the budget, too. However, if the project is not RERA registered, it can leave buyers vulnerable - sometimes, possession might get delayed, or in other cases, the project may stall with no protection for homebuyers. A RERA registration certificate is a unique number that buyers can check on the RERA website to ensure that a project is legitimate and that they can trust the builder. Remember, a RERA registration is mandatory for projects where the land to be developed is over 500 sq. m., and there are eight or more flats in the project.

Building approval plan

This document is issued by the local authority or municipality to ensure that the construction adheres to all the approved norms. It also verifies the legality of the property and compliance with regulations.

Khata certificate

This document establishes the homeowner's identity for tax payments and is important for obtaining utility connections like water and electricity. It's a revenue document that checks the property's details—including the size, location, area, and more—to pay property taxes, and verification of the Khata certificate is necessary wherever applicable.

Completion certificate (CC)

The local development authority inspects the property once it's completed. The completion certificate proves that the project complies with all the safety standards, regulatory requirements, building codes, and approved plans. It's a must to obtain utility connections and occupancy certificates.

Occupancy certificate (OC)

After the building or a home is constructed, the local municipal authority issues the OC, which verifies that the property is ready for habitation. This document helps in getting a home loan or approvals for rentals and commercial purposes.

No Objection Certificates (NOCs)

A developer must obtain NOCs from various departments and authorities while completing the project. This includes the pollution control board, fire department, water and electricity boards, and more to confirm that the project complies with all legal norms. The number of NOCs can vary according to the state. A home buyer must obtain a copy of these certificates and keep it safe for future reference.

Allotment letter

The developer or builder issues the allotment letter, which includes details of the property, payment plan, additional charges, and the amount paid by the buyer. It is the preliminary confirmation of the allocation of property/flat to a particular buyer. It is usually issued when a home buyer invests in the purchase of a flat/ home in an under-construction project.

Possession letter

It's time for some good news. The developer will issue this letter, indicating a date on which the buyer can claim ownership and move into the flat/property. Remember, this isn't proof of the property's title. However, the letter indicates the date on which the buyer can take possession and move into their dream home.

All in all, navigating the realty market can be quite an adventure - whether for a first-time buyer or a seasoned investor. Having a good grasp of these key property documents can make the process safer and more secure. Understanding and verifying all the above-mentioned documents gives peace of mind to every buyer and protects investments from legal and financial bumps down the road.