Home signifies more than a dream for almost every individual. We spend almost a quarter of our life in the efforts that lead us to buy a home for ourselves and our family. But this process of purchasing property whether it is a luxury flat in Chennai or an apartment in Adyar is far more complex in reality. Especially for first-time homeowners, it can quickly become confusing and overwhelming. There is a mountain of paperwork that needs to be prepared depending on the type of property you are purchasing.
In this article, we have prepared a guide of documents required for home buyers’ in order to buy a house for the first time-
The Sale Deed
The sale deed is one of the most important legal documents that serve as evidence of the selling of property. It is also proof of transfer of the property from an individual owner or builder to the buyer. On several occasions, people decide to sell their property after a couple of years of purchase. For such situations, the sale deed is essential. The execution of the sale deed actually happens prior to the sale agreement and after the compliance of all kinds of terms and conditions that have been mentioned. The sale agreement also needs to be agreed upon by all individuals involved in the buying and selling process.
Verify the identity of the seller
Buyers also need to verify the identity of the seller prior to the purchase. This verification includes the residential status and nationality of the seller. At times a seller also requires government sanctions for selling a property. In case those luxury flats in Chennai you absolutely love are jointly owned by people, you need to conduct identity verification of all the owners. Documents that usually serve as proof of identity include the Aadhaar number, PAN number, passport, income tax returns, salary certificates, etc.
The Mother Deed
The mother deed is the document that traces the ownership of any property. In most cases, banks ask loan applicants to submit the mother deed when they submit the loan applications. If you are unable to understand how to get your hands on the mother deed, you can approach the local authorities for creating this document.
Sale and purchase agreement
The sale and purchase agreement includes a list of all the terms and conditions that have been agreed upon by the buyer and the seller. For example, if both parties involved in the sale agree that the negotiated price of the luxury flat in Chennai to be 1 crore, this information will be recorded in the sale and purchase agreement.
The building approval plan
This document is mainly useful for those buyers who opt to buy land and then build a house. Before the construction begins, the builder must take the required step of acquiring provisions of the building bylaws, master plan and local body acts. There are two parts involved in the process- the building plan and the layout approval. As a first time home buyer, you need to be aware of the fact that the builder has met all the terms and conditions mentioned in the building plan as well as layout approval. If your builder skips this step, you can land in trouble when the local authorities show up for inspections. In fact, spot checks are extremely common when it comes to new buildings.
The letter of Possession
A document prepared by the builder that states the date of buyers’ possession of the property is known as the letter of possession. A builder can only make this document after receiving the receipt of completion also known as a completion certificate. The letter of possession is issued in the name of the builder, but it is not proof of ownership of the property. To prove the owner, a buyer must get an occupancy certificate.
The Completion Certificate
A completion certificate is also known as an Occupancy certificate, is issued only when the building undergoes an inspection after completion and is deemed as legal by the local municipal corporation or any other local developmental authority. No building can get the completion certificate if basic utilities like water supply, electricity supply, and drainage system are absent. Experts advise first-time homeowners to avoid buying any property without seeing the completion certificate.
In any case, where the completion certificate is missing, the building is illegal and the result can be a heavy penalty or even eviction. If a buyer is unable to extract the completion certificate, then approaching the local authorities might be helpful.
The Khata Certificate
A khata is essentially a revenue document that records important details of properties such as size, location, and area where the building is situated in order to pay the property tax. When a buyer applies for a home loan, he or she must provide the khata certificate as it is a form of identification. You also need the khata certificate before you apply for electricity and water supply.
The Allotment letter
If you choose to buy luxury apartments in Chennai that is currently under construction, you must ask for the allotment letter. This document contains all the details about the payment of the apartment and the additional charges you might have paid for extra facilities. The presence of this letter is crucial when applying for home loans as it stands as proof of all the expenses you covered to buy a property.
The process of buying property is challenging and needs planning. However, if you get your hands on all the documents and follow the steps meticulously, buying a house will be easier!
