An entire chain of documents and agreements related to the flat is much needed when buying a new or re-sale one. Acquiring and verifying other agreements and papers in regard to the buying and selling of the flat till date will keep you in a safe zone. The list of the documents that should be checked before purchasing a new or resale flat is mentioned below:
- Title Report– A Title Search at the Registrar’s office should be conducted in order to retrieve the chain of documents that reflect the history of the flat. A written analysis of the flat in the form of the Title Report containing its description and information related to its tax rate, title holder’s name, along with details of property tax, liens, and mortgages associated with it will be provided.
- Title Deed– It is extremely vital to procure the original ‘Title Deed’ of the flat which shows the sale and transfer of property ownership from the seller to the buyer. It contains the seller’s name, details of the loans, if there are any, and all other information pertaining to the property. The Immediate Title Deed is of high importance as it will be the primary proof of your ownership.
- NOC from Bank– It is extremely important to check if the flat is mortgaged against a loan. If there is any loan on the flat, the debt status needs to be thoroughly checked. In order to avoid any complications, make sure that all the pending dues have been paid back to the bank, ask the seller to get a No Dues Certificate from the concerned bank.
- Building Approval Certificate– An illegal construction can be a trouble later. Hence, the flat is built following a building plan approved by the local municipal authority or not should be checked and verified.
- Completion/Occupancy Certificate– The Completion Certificate is issued by the local municipal authorities on the completion of a project and an Occupancy Certificate is issued by a local government agency after the project is declared suitable for occupancy. It is important to collect both documents in the seller’s name in order to verify that the flat is legally constructed following the approved plans and other legal guidelines of the authorities and is fit for
- Encumbrance Certificate– Ask for the Encumbrance Certificate (EC) which gives a detail information that the property has no dues, the title is clear and marketable, and it is not sold to some other person at the same time. It also informs about the legal issues associated with the property. All the transactions pertaining to the flat will be displayed on this certificate.
- Latest Tax Paid Receipts– Check and verify all the latest tax receipts before buying a resale flat. This will let you know that there are no outstanding dues attached to the property.
- Sale Deed– The Sale Deed is a document which acts as the chief proof of ownership for the sale of a property in the future. It must be registered in the Registrar’s office after the purchase of the flat. It is the most important document that you need to acquire after the Title Deed is transferred by the seller. Read all the Terms and Conditions carefully before signing the core document.
- Possession Certificate– The certificate is required while purchasing a private Builder flat. This document is handed over to the buyer once he/she has physical possession of the property. It is issued by the builder its first owner. Hence, when buying a resale flat it is important that you obtain the possession paper from the seller.
- Share Certificate– While buying a flat in a cooperative group housing society, issuance of a new Share Certificate by the society transfers the flat in the purchaser’s name. It gives details of the name of all the previous owners.
- No Dues Certificate from Society– If buying a flat in a Co-operative Housing Society it is suggested and important to get NOCs or No Dues Certificates from the society. Make sure to procure letters from the society stating the details about the building. The NOC also denotes that the society has no objection to transfer the Share Certificate to the buyer.
- Utility Bills– Check whether the utility bills such as water bills, electricity bills, gas bills, etc. are all paid at the time of purchase and are in the name of the owner.
- No Objection Certificate (NOC)– Before making any payment towards the resale flat make sure to check the No Objection Certificates (NOCs) from the competent authorities. If the seller is not able to provide NOCs from the concerned authorities, it is advised not to buy it.
All the above documents form a crucial part of the chain of documents that are needed at the time of buying a flat. All of these are also required to submit to the bank if applying for a home loan.