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Important Documents for Buying a New Home

Buying a new home is a crucial process, and to an extent a little confusing too. One really needs to be sorted in order to make this whole activity hassle free and simple. From the first step of shortlisting your choice of residential property, to the last step of signing the final deed of transferring the ownership, everything needs to be paced stepwise.

Taking a survey of the localities you like and choosing one residential property for yourself and your family can be interesting. Next step is to find out if the developer is a good one and has a decent reputation in the real estate industry like Brigade Group, etc. After this you need to find out if the locality is suitable for you and fulfills all your requirements like a hospital in the vicinity, a shopping complex, educational institutes, recreational facilities, security, etc. Once you are sure you are satisfied with everything and you finalize the decision of buying a particular property, you need to get going with the most crucial process of documentation. This can be very confusing and this confusion can cost you your lifetimes saving. Therefore it is wise to make a list of the documents you might need to have and to check from the builder or developer, so you can one by one make their photocopies whenever needed and check them. To help you with these, following is checklist for your perusal:

Sale Deed: It is the legal transfer of ownership from buyer to seller and needs to be registered. A seller should settle all the statutory payments such as property tax, water charges, society charges, electricity charges, maintenance charges etc., (as per agreement) before executing the Sale Deed.

Mother Deed: This is also known as the parent document as it traces all the owners the property has had from the day it was built in correct sequence and hence it the change of ownership of this property.

Building Approval Plan: This is very important while buying an apartment or a flat in a township. In Bangalore, these are approved by the BDA, BBMP or BMRDA or BIAPPA without his the construction of the building is considered illegal by the Karnataka Municipal Corporation (KMC) Act.

Commencement Certificate (for Properties Under Construction): It is a legal document issued by the local authorities like BDA, BBMP, etc. which states that the residential project meets the given legal criterion for constructing a building for residential purpose and the project is habitable. This is approved after the inspection of the site.

Conversion Certificate (Agricultural to Non-Agricultural): This indicates that the land on which the property is constructed has permissions from the legal authorities to be used for residential purpose. The owner of the building or the developer or the builder needs to get this approved.

Khata Extract or Khata Certificate: This is obtaining property details from the assessment registrar. There are A-Khata properties which are legal and good to buy and there are B-Khata ones which are not legal construction. Therefore you get to whether the property you are buying is good for you might put your money at risk.

Encumbrance Certificate: It refers to the charges or liabilities in the ownership created on the property for home loan as security.

Betterment Charges Reciept: These are development charges to be paid to the local authorities by the owner before sale of home.

Power of Attorney (POA): It is a document which states the owner or seller is transferring all rights to the buyer or to the new owner.

Latest Tax Paid Receipt: This is a proof that all the taxes on the construction have been duly paid to the government and nothing is due.

Completion Certificate (For a constructed Property): It is issued by the municipal authorities and states that the construction is in compliance with the laws and terms laid down by the authorities.

Occupancy Certificate (For a constructed Property): This simply certifies that the construction is complete and fit for use.

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