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Check these documents before buying a property.

19, Jul, 2017


The exact laws governing the sale of property could be slightly different in numerous states, however there are a couple of permissions and documents a builder or promoter must have if they're marketing flats. Here are the documents that one must check once before buying a property from a builder:

Title deed: This document can tell you whether or not the builder owns the property being sold and has the right to sell the property and also the freedom to transfer ownership. Insist on seeing the original, and not a duplicate of the title. It'll additionally tell you whether or not everything is legal or if there's litigation ongoing relating to the property. A purchaser should check the first deed and make sure that the land is within the name of developer, to make sure that nobody else has right to sell it. It’s better to get the title reviewed by a professional.

Commencement certificate (CC): This is a document which must be issued by the local authorities and legally allows a builder to start the actual construction work. This is important as any construction without procuring a CC is illegal.

Intimation of disapproval (IOD): This is a set of permissions which must be obtained by a developer at various stages of construction. ‘This would involve acquiring approvals and a No Objection Certificate (NOC) from various departments such as the Storm Water and Drain Department, Sewage Departments, Forest Department, Environment Department, Traffic and Coordination Department, Chief Fire Officer, Airport Authority and Pollution Board, among others.

Approved layout plans: The layout plans must be approved by the appropriate planning authorities. Home buyers need exercise caution as there are cases where developers deviated from the approved layouts, by adding further floors or reducing open areas.

Encumbrance certificate: This can be obtained from the office of the registration authority (the sub registrar’s office) and tells you whether the property carries any legal or monetary liabilities or has any litigations pending. It can go as far back as 30 years.

Purchase agreement: You should go through this document carefully to make sure it includes everything you were promised. You can only hold a builder or promoter legally accountable for what is in the purchase agreement, not what has been verbally promised to you. The agreement should contain all major details of the development project like the project specification, apartments, payment terms, completion deadlines and also the sort and quantity of penalty, should any party default. The agreement ought to additionally contain a clause to transfer the common areas to the society. This ensures the plot remains with the first homeowners which the developer cannot interact in more construction on this land.

Occupancy certificate (OC): Issued by local authorities, this certificate states that the property has been constructed in compliance with the provided permissions. At this stage the developer would have completed all necessary water, sewage and electrical connections.

Completion Certificate (for a constructed property): A Completion Certificate is issued by the municipal authorities denoting that the building is in compliance with their rules in terms of height, distance from the road, and is built as per the approved plans etc. This document is very important at the time of buying a property and seeking a home equity credit.


Posted by : Satish Singh

Propfrill.com ( GTF Technologies ) shall neither be responsible nor liable for any inaccuracy in the information provided here and therefore the customers are requested to validate the information from the respective developers before making their decision for purchase of properties. The information provided herein have been collected from publicly available sources, and is yet to be verified as per RERA guidelines.*

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