Verify these important documents before buying ready-to-move property
Lately, amid the rising delays in under-construction projects, there has been an increased demand for ready-to-move flats. While they come at a higher price, they avoid the possession risks. Nonetheless, buyers must be acquainted with the important checks before buying a ready-to-move property. Here we list the property documents to verify before proceeding with the purchase.
With the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), buyers are wary about investing their hard-earned money in under-construction housing projects. The constant project delays have tarnished the reputation of under-construction projects, demand for ready-to-move flats has increased manifold.
Another benefit of buying a ready-to-move property is that you can move in any time you want or let it out for rental income. Unlike an under-construction property, a ready-to-move unit will allow you to save your expenses on current accommodation, which can be used to pay instalments for the home loan.
However, experts advise that prospective buyers should be aware of certain procedures and norms while finalising their purchase decisions. Buyers must be well-acquainted with the paperwork involved in the home-buying process. Not only will buyers have to furnish details and documents to the authorities and the bank, if they are availing a home loan, they must also check certain documents to ensure a clear title of ownership and government approvals.
What are the documents to be checked before buying a ready-to-move flat?
Here is a list of important documents that must be verified while purchasing a ready-to-move property:
Sale deed
A sale deed tops the checklist while verifying documents for your new home. It is the core legal registered document, which acts as proof of sale and transfer of the property. It is advisable to read the fine print and check all the terms and conditions before signing the deed.
Completion/Occupancy Certificate
A Completion Certificate (CC) is issued by the municipal authorities on the completion of the project. Meanwhile, an Occupancy Certificate (OC) is issued by a local government agency once a project is completed and deemed fit for habitation. This certificate reads that the property has been built in accordance with the approved codes and other laws making it suitable for occupancy. Both these documents are mandatory while seeking loans from banks and financial institutions or while applying for water, sanitation, and electricity connection.
Building Plan
The building plan is another crucial document that needs to be cross-examined before concluding a property purchase. Usually, a building plan is approved by the local municipal authority. Also known as a site plan, this document will contain a blueprint of the project, equipment layout, and utilities. Buyers must ensure that the layout of the building or project has been duly approved by the local authorities. Any unauthorised or additional construction runs the risk of being demolished or denied occupancy later on.
Encumbrance Certificate
It is also important to verify that the property does not have any dues. For this, a buyer must check the encumbrance certificate. An encumbrance certificate provides evidence that your property has no monetary or legal liabilities. The certificate can be obtained from the sub-registrar’s office where the property has been registered.
Mutation Certificate
Property mutation document identifies the owner of the property in government records and establishes their tax liabilities. The Mutation Certificate is also popularly known as the ‘Possession Letter or Certificate’. It establishes the process of transfer of the ‘title’ of the property towards the new owner. Buyers are advised to seek help from a legal expert for vetting all documents.
General Power of Attorney
A buyer needs to identify whether the previous sale or purchase of the property was made through a General Power of Attorney (GPA). In case the transaction was conducted through GPA, a copy of the document must be gained to ensure that the sale or purchase was made by an authorised person.
No Objection Certificate
Different government authorities and departments, like electricity, safety, gas, and water boards, give a No Objection Certificate (NOC) to state that the necessary approvals are provided to the builder or seller. Such a certificate assures the buyer that the property is regularised and that no acquisition or demolition claims are pending.
The risks involved in the possession of property have shifted the focus of buyers towards ready-to-move flats. However, the risks can be evaded through proper verification of the documents listed above. One must ensure the legal documentation process while making a significant investment in real estate.