While purchasing a property, getting all the legal documents ready is one of the key points one should heed. Especially if you are a first-time buyer, the jargon present in the legal documents can confuse you. You can refer to this blog as a guidebook to help you navigate the real estate pitfalls you may encounter. However, before discussing the essential legal documents, let us first understand the importance of legal documents in property buying.
Why Are Legal Documents Important In Property Buying?
Legal documents are essential documents because these documents record the transfer of ownership of the properties. These documents also establish that the property has an entry in the municipal records and is free from all encumbrances or loans. In addition, there are also legal documents approved by statutory bodies that establish that the property is legal and the construction is done adhering to the laws.
Important Legal Documents Required To Buy A Home
The following are the required legal documents that you need to consider while buying a property:
- Agreement To Sell: It is the primary document prepared in anticipation of a property sale. This document contains a detailed description of the property and states the terms and conditions between the buyer and the seller.
- Sale Deed: This is considered one of the most important documents while purchasing a property. The sale deed has to be produced in original as it records the actual transfer of ownership of property. It needs to be registered at the sub-registrar’s office under whom the property is located.
- Extracts: It is an essential document for registering a new property. It also plays a vital role if you want to transfer the ownership of the property at a later stage. This document proves that the property has its entry in the municipal records, and the construction is done according to an approved plan.
- Receipt Of Property Tax: The property tax receipt states that the previous owner has paid all the taxes, and no dues are left. It also establishes the legal status of the property, and therefore, it serves as an essential document of evidence.
- Encumbrance Certificate: An encumbrance certificate states that the property is free from all encumbrances or loans. It is a crucial document for obtaining a loan against property from banks since it holds all the details about transactions relating to the property.
- Occupancy Certificate: An occupancy certificate is issued by the municipal corporation after constructing a building to establish that the building is constructed according to a sanctioned plan and is ready for occupation.
- General Plan Of Attorney: This document is required to prove whether an authorized person is selling or purchasing a particular property on behalf of the property owner. The original copy of this document is mandatory if one is trying to get a home loan.
- Copy Of Building Plan: Buyers must acquire a copy of the building plan approved by the statutory body to establish that the property is legal and built, adhering to construction laws.
- No Objection Certificate: There are nearly 20 NOCs that have to be acquired by the developer from different authorities while working on a housing project. However, the numbers may change according to specific state rules. Remember, it is the responsibility of the current buyer to get all the copies of these NOCs from the previous owner and keep them in a personal record.
I hope you understand the list of legal documents you should consider while buying a property. This blog will help all buyers to purchase property for the first time. Ensure that the seller provides you with all the documents before closing the deal. For more informative blogs on real estate, visit our site.