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You put all your hard-earned money into your property. The last thing you’d want is to get into a legal wrangle before moving into your cherished abode. Therefore, it’s wise to be cautious and careful before you book an apartment. Scrutinize all the documents that involve a property purchase. We guide you on this aspect with a brilliantly compiled handy toolkit. Check it out before you start your house hunt.
Remember, we’re talking about the legal documents that give you the right of ownership of your home without a hitch. So, it helps if you learn some of the jargon. It is also wise to seek the help of a certified real estate legal consultant who is an expert in the legal process.
Title Deed
This vital legal document will tell you whether the builder owns the property being sold, has the right to sell the property and to also transfer property ownership. Before you seal the deal on your home, insist on seeing the original Title Deed and not a copy. This document is proof that there is absolute transparency in the property transaction and reveals if the property where your home is located is under litigation or legal dispute.
You should check the original Title Deed to confirm that the land where the residential project is located is in the name of the developer and no other person has the legal right to sell it.
Consult a legal expert to check the Title Deed if you are unable to understand the terms mentioned.
Building Approval Plan
All builders are required to get necessary approvals from the local municipal authorities such as the BBMP in Bengaluru, before they begin construction. For this they need to produce their Building Plan and the Layout Plan under the provisions of the Building Bylaws, Master Plan and Local Body Acts to get the sanction to go ahead with their project construction.
As a homebuyer, it is your duty to ensure your developer meets the terms and conditions of the Building Plan and Layout Approval before buying the house, to prevent unpleasant surprises in future.
Occupancy Certificate (OC)
Also called a Completion Certificate, this crucial document states that the building has been inspected by the municipal authorities upon completion and adheres to all the laws under the municipal corporation (BBMP) or the local development authority (BDA). This legal document is required to avail utilities such as water supply, electricity supply and the drainage system. As a homebuyer, ensure you ask your developer for an OC. If the developer fails to procure one from the BBMP, you as the homebuyer can obtain one from the municipal corporation.
Possession Letter
This document drafted by your builder states the date of your possession of the property. It is usually made in the builder’s name after the Occupancy Certificate is obtained.
Khata Certificate
Khata is a revenue document that contains details of the property, such as size, location, area that it is built upon etc. A Khata Certificate is required by a homeowner to pay the property tax. If you are availing a home loan, you need to present the Khata Certificate which is also a form of identification.
Allotment Letter
If you are booking a home in a project which is under construction, you will need an Allotment Letter. The document includes all the details regarding your payment details to the builder and other charges for additional amenities such as a car park, etc.
This letter too is important while applying for a home loan.
Sale Deed
This is one of the most essential legal documents that confirm the proof of the sale of the house. It also is legal evidence of the transfer of the property from the builder to you – the rightful house owner. Till the Sale Deed is signed by the builder and you, the builder is the rightful owner of the house. This is why this document is one of the foremost legal papers you must procure and keep safely in your possession.
In the future, if you want to sell the house, the Sale Deed will confirm you as the legal owner to give you the right to make the sale to the new buyer.
The Sale Deed is signed before the Sale Agreement, another legal document which outlines the terms and conditions of the deal. Both the builder and you, the homebuyer should both agree to comply with the terms and conditions mentioned in the sale agreement before signing the Sale Deed.
What the Sale Deed contains
An authentic Sale Deed must include:
- Details of the buyers and sellers (name, age, and addresses)
- Description of the house (total area, details of construction, the exact address, and surrounding landmarks)
- Sale transaction details including advance payment paid and the mode of payment
- The time frame when the property title rights will be handed over to the buyer
- The actual date of delivery by the builder and possession of the property by the buyer
- Indemnity Clause where the builder/seller promises to pay the buyer for any damages in case of disputes with regard to the ownership that results in monetary losses to the buyer
One most important requisite is to register the Sale Deed in a sub registrar’s office where your property is located.
Sale Agreement
This important document contains all information about your property purchase such as the terms and conditions that the builder and you the homebuyer agree upon, the negotiation details and the agreed amount for the property by the builder and you, the date of possession of your property, the payment plan, the house specifications, the details about the common areas and facilities in the project, etc. Besides all these, the Sale Agreement holds the developer responsible for the construction of the property.
The original document is required during the purchase of your home.
In fact, if you are applying for a home loan, you need to present the original Sale Agreement to the bank or financial institution.
Stamp Duty and Registration
In order to execute the Sale Deed, you need to pay the Stamp Duty and Registration fee. This is done at the sub registrar’s office where your property is located.
Stamp duty is a legal tax payable in full to the government and is evidence for any sale or purchase of a property. It is collected on the basis of property value at the time of registration. In Karnataka, the Stamp Duty on properties priced between Rs 35 lakh and Rs 45 lakh is 3 percent, while properties priced above Rs 45 lakh will be charged at 5 percent.
Registration of your property is compulsory under Section 17 of the Indian Registration Act, 1908 to ensure you are the legal owner of your home. This vital document can prevent any fraudulent action or litigation on your rightful property in future.
At the time of property registration, you as a home buyer are required to present the sale agreement so the authorities know that the transaction is being done legally between you and the builder.
Before you embark on your beautiful journey towards owning your home, equip yourself with this ready reckoner we compiled for you to make you a legal expert in your own right.
When you choose a home from a developer of repute like HM Constructions https://www.hmconstructions.com you can rest assured that their highly qualified Customer Service department is backed by an impressive army of legal experts, project managers, and financial wizards to extend their support at all times.
Happy home shopping!
Contact us to know more @888 0225555.