Document Checklist For Buying A House

By BankBazaar | June 4, 2017

Document Checklist For Buying A House

Don’t we all hate paperwork? Those of us who are in the midst of buying a house hate it even more. There are just too many clearance certificates, deeds and NOCs required, and builders, in most cases, take their own sweet time to bring them to you.

Wouldn’t it be great if somebody would just hand us a list of all the documents we need to go ahead with the purchase of a house? Life would become so much easier. Well, we’re here to do just that.

Here are two lists you can carry in your pockets to help you make checks before you buy a house and after you close the purchase. You might be smart at reading and interpreting the cryptic home sale/purchase documents, but it advisable that you always get them vetted by a service lawyer.

They are qualified at detecting irregularities and are better aware of what’s happening in the real estate business. Make sure you always take the original bunch of documents for review since photocopies can be manipulated.

The list below is not exhaustive, but it mentions some of the important documents you need to close a deal.

Additional Reading: 10 Loan Tips for First Time Home Buyers

Documents to check before making the purchase

Approved plan of the building: Nothing works well without a plan. A builder must have a plan approved by the local body concerned before starting a new construction. The builder must also follow the plan to the T. Discrepancies, whether big or small, can spell trouble for the builder as well as all those who have purchased a house there.

Letter of allotment: How do you secure a deal for an under construction property? The allotment letter is an important document for purchasing such a property. The builder will prepare a document that will clearly mention details of the project under construction and your share in it. These details will include the apartment number, address, floor etc. This document will also represent your side of the story in case a dispute arises.

This might seem like a given, but you must find out from your builder if he has the permission to build flats in a building.

Sale deed: A sale deed is a very important document. It’s an agreement between you and the seller regarding the sale of a property. This document mentions all the terms and conditions of the sale, the amount and the legal action that can be taken if the conditions are not met by either party.

Additional Reading: 10 Tips For A Smooth Home Buying Experience!

No objection certificate: Your builder must furnish NOCs from various departments such as the electricity, water and pollution departments. Your lawyer will be able to best guide you to ask your builder for all the required NOCs. In some cases, builders might also have to provide clearance letters from the relevant department if ecological areas may be affected.

Certificate of commencement: A builder cannot start constructing until and unless all the clearances and other relevant documents have been acquired. Once the file is ready, builders must get a commencement certificate from the local government body concerned.

Certificate of conversion: You’ve probably heard of cases where agricultural land is converted into commercial to expand the reaches of the concrete jungle. Although the government is clamping down on this move, there are still many cases where permissions are granted to house the ever-booming population of our country.

Your builder will hand you land conversion papers if the property you are purchasing has been converted to commercial from agricultural land. Make sure it’s authentic.

Additional Reading: 6 Common Mistakes Made By First-Time Home Buyers

Certification of completion: This is a crucial document for all those buying a ready-to-move-in property. A certificate of completion states that the building is equipped with all the necessary amenities like water, electricity, drainage system etc.

Next up is the list of documents you need after completing the purchase of a property.

Original sale deed: This document will be provided by the builder and will have all the details about your portion of the property in case of apartments. This deed gives you complete ownership of your land and the power to sell it if you wish.

Certification of possession: This is also called an Occupancy Certificate. This document is not required when you register a property, but you must remember to collect it from the seller once the construction of the house is complete or when the property is ready to be occupied.

If the builder/ seller is unable to furnish this certificate, then it probably means that the construction did not take place as planned. Therefore, it is important that you always check the track record of the builder before registering your property. Before you wrap up the deal, remember to transfer the title to your name.

Moving to a new home also means a change of address. This means updating your government IDs with the new address.

Bonus Read: The Beginner’s Guide To Taking A Home Loan

If you have found a property with the perfect set of papers then it’s time to look for a Home Loan. We can surely help you with this. Our array of Home Loans will even put the car collection of rich Arabs to shame.

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Category: Home Loans

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