Buying a Property? Those 14 important property documents you should consider before buying a plot/apartment!


Consider the paperwork that must be reviewed before purchasing land or a flat. Before buying a flat or a house, you should verify numerous land papers, and you should keep these elements in mind without a doubt. Understanding this paperwork can assist you in staying on top of the whole house or property-purchase process. It's also critical to start on the customary path ethically when investing in a future asset. 


Understanding the need of our customers is our priority! Hence we at Value Homz will help you run through these essential pointers, which are very important when you are booking an under-construction property or be it a ready-to-move-in property:-


1) Agreement to Sell-

The ATS is a document that contains the seller and buyer's agreed-upon terms and conditions for selling the property before the sale deed is drafted. This also informs you of the property's agreement value and the loan amount. The investment done for any resale property will be a percentage of the agreement value or market value, whichever is lower. 


2) Blueprint for Building approval-

The development of planning agencies for certain regions approves these plans. The construction will be ruled illegal if it does not have a building approval plan. A building approval plan is approved based on numerous factors:


  • FAR stands for floor area ratio.
  • Width of the road
  • Classification of the zones
  • Plot's depth
  • Property assessment extract, a title deed, city survey sketch, property PID number, property designs, and foundation certificate are among the documents.
  • Updated tax receipts, previously sanctioned plans, two demand draft copies, and a land-use certificate are among the other documentation necessary. 


Building owners should use registered architects to design the plan following local bylaws and regulations. 


3) Allotment Letter (Under Construction OR Ready To Move in Properties)-

This is the letter from the appropriate authority or society conferring the property allocation to the buyer. This is one of the most crucial documents that you should have.


4) Builder/Buyer Agreement (Under Construction OR Ready To Move in Properties)-

This is another vital document which is the legal contract between buyers and builders. In case developers do not maintain the construction timeline or any other promises, this is the document that buyers can rely on. This document covers the construction timeline, cost escalation clauses, payment delays and proceedings and so on.


5) Payment Receipts (Under Construction OR Ready To Move in Properties)-

The payment receipt proves you are having paid the token money or initial advance to the developer. The payment receipt may be printed on Rs. 10 or Rs. 2 stamp paper depending on the State. The developer or seller may sign on the revenue stamp for acknowledging the payment that has been received. The buyer should keep all signed payment receipts in this regard.


6) Letter of Possession (Ready to move in New & Resale Properties)-

The real estate developer uses the possession letter in the buyer's favour. This document will include the property's possession date and the time frame in which the property owner must make the complete payment before taking possession.


7) Builder NOC (Non-Objection Certificate)-

Builder NOC (No Objection Certificate) is required whenever any resale property (both ready to move or under construction) is being sold. This is the vital document that enables the direct transfer of under-construction property to the buyer. Buyers can enter tri-party agreements with sellers’ basis on the builder NOC in this case.


8) Sale Deed (Under Construction & Ready-to-move-in Properties)-

One of the most crucial papers necessary for land transactions is the selling deed. This document serves as documentation of the property's sale and transfer of ownership from the seller/developer to the buyer. Compulsory registration of the selling deed is necessary. Prior to the execution of the sale transaction, all parties should sign the sale agreement, and the terms and conditions agreed upon by the seller and buyer should be thoroughly checked. 


The seller must pay the following charges and expenses before the selling deed may be executed:

  • Water charges
  • Property taxes
  • Cess
  • Electricity charges
  • Society charges
  • Maintenance charges


9) Trailing Sale Chain Deed (Ready to move Resale Properties)-

This generally refers to a property's whole series of transfers or sells. The previous owners of the property must provide the original selling document. This will assist you in tracing the ownership of the property, and you should keep an eye out for any missing paperwork. Properties with clear paperwork always have a greater chance of selling, and the chain of previous agreements with previous owners, as well as original registration receipts and the authorities' original letter of allotment to the first owner, are vital.


10) Mutation Document (Ready to move Properties/Post Registration)-

This document contains all pertinent information regarding the property, including the owner's name, address, size, and other essential characteristics.


11) Encumbrance Certificate (Ready to Move In Properties)-

Liabilities/ownership costs on properties held as collateral for a home loan are referred to as encumbrance. During the time for which it is necessary, the EC will have recorded transactions for a property. To get this, you'll need a copy of the selling deed, as well as a completed Form 22 with a non-judicial stamp. 


12) Commencement Certificate (Under-Construction Properties)-

This document states that the project meets all required requirements and orders that development on the project site begins immediately. Any construction that does not have this certificate is unlawful. 


13) Completion Certificate (CC/ Ready to Move Properties)-

In the event of newly constructed properties, a completion certificate must be obtained. This is a document issued by municipal authorities that certifies that structures meet all building standards, including distance from the road, height, and construction specified in the approved building design. 


14) Occupancy Certificate (OC/Ready to Move Properties)-

Applying for an occupancy certificate, which is only applicable to built homes, triggers an examination by authorities to ensure that the construction complies with all rules. This certificate is awarded following the inspection and completion of the building.


To summarize, the following documents are necessary for both under-construction and ready-to-move houses.