Checklist of Legal Documents for Buying a New Property


Checklist of Legal Documents for Buying a New Property. For many individuals, getting a new house is more than just a dream. The important thing is patience because looking for a property is a time-consuming task.

Different types of documents are needed, depending on the sort of property you want to purchase. This blog will help as a buyer’s guide for those, who are going through the home-buying process for the first time.

Checklist of Legal Documents for Buying a New Property

1. Agreement to Sell the Property – Legal Documents for Buying a New Property

This document is the first one made in advance of a property sale. This agreement specifies the conditions of the deal between the buyer and seller, including the purchase price and also the information regarding the property.

2. Sale Deed and Title Deed – Legal Documents for Buying a New Property

The Sale Deed and Title Deed, which provide proof of the sale and transfer of property from the builder to the individual, are crucial legal documents. Usually, years after purchasing a home, the owner may decide to sell the property for a reason, in which case this paperwork is crucial. The sale deed is often signed before the sale agreement and upon conformity to the terms and conditions outlined within as agreed upon by the parties.

3. Title Search and Report

Title Search and Report is an essential document that tracks property ownership. Banks typically request this paperwork when a buyer takes a loan against the property. While creating this document, an individual may seek assistance from local authorities.

4. A Khata Certificate – Legal Documents for Buying a New Property

A Khata is an official certificate that proves that the property was documented in the local municipal records and that the building was completed in compliance with the authorized designs. A revenue document that provides facts about the property, such as size, location, area that it is constructed on, and so on, to pay property taxes. It is necessary when applying for a mortgage and is also used as identification. The Khata Certificate is in the house purchase process since it is required to apply for electricity and water service. It is also required if you wish to transfer ownership in the future.

5. Property Tax Receipt

Property tax receipts prove that the previous owner or occupant paid all taxes. They also serve as actual proof for establishing the legal status of the property.

6. Occupancy Certificate  – Legal Documents for Buying a New Property

When a building is completed, the municipal corporation issues a completion certificate or occupancy certificate. The certificate certifies that the building was built according to the authorized plans and is ready for occupancy.

The building is considered unlawful if you purchase a home without a Completion Certificate and may result in a penalty or even eviction. If the builder fails to get a Completion Certificate, the buyer may visit the municipal corporation and request one.

7. NOC (No Objection Certificate) – Legal Documents for Buying a New Property

NOC (No Objection Certificate) is crucial to check that the project has received all the necessary certificates and requested copies from several departments, such as the Sewage Board, Pollution Board, Environment, Traffic, Coordination department, and so on.

8. Any Powers of Attorney

A Power of Attorney in its original form is necessary whenever somebody acts on behalf of a property owner. They may be a broad or narrow Power of Attorney.

9. Possession Certificate – Legal Documents for Buying a New Property

A possession certificate ensures the ownership of a property is effectively transferred from one owner to another. If you failed to do so, this may result in legal problems. As an informed buyer, you must obtain this certificate in your favor when purchasing a home.

10. Payment Receipts – Legal Documents for Buying a New Property

Request a copy of the receipts from the seller when purchasing a resale house. Get the original payment receipt from the developer when you buy a new property so you may take it to the bank.

Final Thoughts

  • If you are going to buy a new property then you should carefully review any documentation that proves the seller’s identity with Aadhaar, PAN, and other identifying documents including his passport and the legitimacy of the property.
  • To ensure the transaction is error-free and receive legal guidance, it would be great to hire a lawyer.
  • The property must be registered after the sale is complete and all other fees have been paid to the builder.
  • Even if all payments have been made to the builder, one does not have any legal rights to the property without registration.

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