Real estate investments are lifetime investments involving your life earnings, it becomes a crucial part to properly check the papers before buying any property.
In India revenue departments are complex to understand -let it be different hierarchies of officers or their powers and duties, everything seems to be like nexus to a common man. It happens that in different states, the officers with the same designation are called with different names. All it creates a hodgepodge scenario to understand how to go about checking of property papers.
The list of common Papers to be checked varies according to the nature of property you are buying, yet we have comprehended following lists of documents to be checked in case of different properties.
A suggestive list of basic Papers to be checked while buying a property:
- Title deed/sale deed:-Title deed tells you about the true owner of the property and about his rights of ownership. It is also called as sale deed since, since it is executed at the time of sale of property in which a the rights of the buyer and the nature of ownership whether conditional or absolute is clearly mentioned. We can say that tilte deed is one of the basic and crucial document which we require to check on the foremost basis.
- Encumbrances:– When anyone obtain loan from the bank, to protect itself the bank intimates to the local registrar of the property on which the loan is obtained to put its encumbrance right so that the mortgagee cannot sell the property. At the time of buying property, you can register at the registrar office whether any encumbrances are marked on the intended property or not.
- Occupancy/ completion certificate(OC/CC):– When you are buying a property which is under construction property, once the construction is completed it is mandatory for the developer/ builder to obtain completion certificate from the respective municipal authority or any such authority from where OC/CC has to be obtained
- Mother deed:– it is essential to check those original chain of papers by the virtue of which the property is transferred to the current owner of property
- Sanction Plan:- It refers to the sanction plan of the flat which includes mainly its map, such map is approved as per the relevant building buy laws of the respective state in which such immovable property do exist.
Special Points to keep in mind:-
- In case you are buying land which was earlier in agricultural use and now converted to industrial/residential/commercial use, then change of land use(CLU) shall form the essential part of property papers. In every state, approval of CLU are called by different names for instance in state of Rajasthan the approval of CLU comes u/s 90B, Rajasthan Land Revenue Act. Therefore the people in Rajasthan called it as “90B approved property”.
- At the time of buying property, it should be checked that house or property taxes till date are properly paid, in general it is even not allowed to transfer property on new name without the clearance of taxes till the date of transfer.
- When you are checking sanction of building plan of the building, sometimes it happens that building plans are not sanctioned by the municipal authority rather the development authority of the state. For example in Delhi, in general building plans are passed by Municipal Authority but building plan sanction rights for few of the properties are still hold by DELHI DEVELOPMENT AUTHORITY (DDA).
- If you are buying any property, which is hold by the co-operative society then you need to check the memorandum of objects(MOA) of the society whether its allowed to build any property, in recent it was used as major tool under Master-Plan Delhi,2021 land-pooling policy as an planning to sell property.
- When you are buying any property in residential society, generally it is also required to obtain non objection certificate(NOC) from the society that all the dues towards society is paid by the current owner of the property, this NOC shall be facilitated by current owner to the new owner.
Disclaimer:- Above article is for the general information of the users, any real-estate matters are of sensitive nature, it is expected from the users to take expert opinion before placing reliance on it.
About Author:- Rajul Jain (CA, MCOM, LLB, MBA, CNPO, CPFA, NCFM) is Chartered Accountant and Legal Consultant, academically he is highly qualified and have gone through various certifications. He extensively speaks and writes on finance, taxation and legal matters. The author can be reached at:- firstname.lastname@example.org