Important Documents To Check Before Home Buying

Important Documents To Check Before Home Buying Buying Guide

Buying a home is more than a dream for most individuals. Looking for a house and buying a house are two very different things. A person devotes a considerable portion of their life working towards purchasing a home. However, the home-buying process can be more difficult in practice, especially for first-time buyers. The type of documentation necessary varies based on the sort of property you seek to purchase. Here's a brief buyer's guide on legal documents required to buy a home for those of you who are embarking on your home buying journey.

1- The Sale Deed

The sale deed is an important legal document that demonstrates the sale and transfer of title, rights and ownership of property from a seller to a buyer. The sale deed is normally executed before the sale agreement and after the individuals involved have agreed to the terms and conditions outlined in the selling agreement. Until a sale deed is signed by the buyer and seller, the purchase or sale of the property is not legally finalized. Usually, a sale deed is often only signed once both parties are satisfied and have complied with the terms and conditions. Many times, years after purchasing a home, the individual may decide to sell the house for a variety of reasons, in which case, this contract is critical. 

2- The Sale and Purchase Agreement

A sales and purchase agreement (SPA) is a legally binding contract between two parties that binds a buyer and seller to a transaction. SPAs are commonly used in real estate transactions, but they can also be found in other fields of business. The agreement finalizes the sale's terms and conditions, and it is the result of negotiations between the buyer and seller.

A SPA protects both the buyer and seller in the exchange of goods. While an SPA is not technically required, it is often a good idea to have terms and conditions outlined in a legal document prior to the transaction taking place. Without a contract, you may have no legal recourse in the event of a failed transaction.

3- Registered under the Real Estate Regulations Act  (RERA)

The RERA mandates that developers should register their projects with the authority constituted under the Act. A buyer who plans to purchase a property in a project is recommended to check if the property has been registered with the RERA authority. Information on cases, complaints, and any defaults by the developer of the project is also published on the official RERA web portal for each state. This information helps buyers make informed decisions by giving them vital insight into the developer's credibility and the project.

4- The Possession Letter

A possession letter is a document issued by the developer to the buyer stating the date the property will be available for possession. It is given to the developer after the designated authority issues a completion certificate. As a result, a possession letter serves as written evidence that the builder has promised to provide the customer possession of the unit by the date specified in the letter. This letter, however, is not proof of ownership of the property. The home buyer must obtain an Occupancy Certificate for this purpose.

5- The Completion Certificate

The Completion Certificate (or Occupancy Certificate) is a document that confirms that the building was inspected upon completion and that it complies with all municipal corporation or local development authority requirements. This paperwork is required in order to obtain services such as water, power, and drainage. For first-time homebuyers, it is not advised to purchase a property without the Completion Certificate because, without one, the building is deemed illegal and may incur fines or even cause eviction. In the event that the builder fails to obtain a Completion Certificate, the buyer may visit the municipal corporation and request one.

6- The Allotment letter

If you want to book a property that is presently under development, you must have an Allotment Letter. It contains all of the information on the payment of the flat as well as any other costs that you may have to pay for any additional facilities. This letter is essential when applying for a bank loan since it specifies the amount that the buyer must pay.

7- Encumbrance certificate 

This document contains all of the details of the property's transactions. When applying for a loan, an encumbrance certificate is required because it states that no loan payments are due. It confirms that the property is debt-free. To receive an EC, the sale deed must be submitted in duplicate.To obtain an EC, a must be filled out and submitted to the nearby Sub-Registrar office.

8- Non-objection certificate

Wherever necessary, no objection certifications should be obtained. A copy of the urban non-ceiling no-objection certificate as well as NOCs for water, electricity, and other utilities should be given to you by the seller or builder. Some of the NOCs come from the Environmental Department, the Traffic and Coordination Department, the Pollution Board, the Sewage Board, and so on. This assures that construction receives "Intimation of Disapproval."

All of these documents are essential components in the chain of documentation required to purchase a home. Next time when you are buying a property or home, come back to this ultimate guide of documents. If any of these documents are missing or the seller is unable to present them, it is recommended that you do not purchase the apartment since you may have issues selling the property.

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