11 Legal Documents You Will Need While Buying Property

1. Title Deed

It is one of the most pertinent things to check for. As we all know, nobody can transfer better title
than he himself has. A seller cannot transfer his property to a prospective buyer if the title isn’t
perfect and free from any encumbrances or defects. A person who claims himself as the seller can’t
so sell his property if the property is not in his name and he doesn’t hold any good title over the
same. The title search of a property can take place at a Sub-Registrar’s office. The buyer is entitled to
receive all title documents of the property and the title document can be asked for properties that are
extremely old, title documents that are prepared thirty years prior to the date of the title search need
to be traced. The title should be free of any disputes over the ownership of the property. The title
deed lets buyers ascertain ownership rights  The seller should be the actual owner of the property.
Before buying property, you should also ascertain whether the seller has the ownership of the
property or just has its development rights.

2. Encumbrance Certificate

It is imperative to know whether the property is free from any legal dues whatsoever. Like in the case
of title search, even encumbrances over the property can be searched for at the Sub-Registrar’s office.
The office would provide all the background about the property concerned, as to whether there is any
mortgage, or any third party claim, liens etc. Care must be taken when buying or investing in a
mortgaged property. An encumbrance certificate or an EC would have a record of all the transactions
done during a stipulated period of time over the property concerned, for which the EC is sought. The
sale deed in duplicate needs to be submitted for obtaining an EC. A form needs to be filled for
obtaining the Encumbrance Certificate and submitted to the nearest Sub-Registrar office.
3. Master Plan

More often than not you will come across sellers or builders of properties claiming certain
infrastructural development at the place where the property is situated. Tall claims like a shopping
mall will be built, schools would be constructed, highways and metros would be constructed often
hold no ground and they are merely said to entice more and more buyers. Before buying a property,
one should closely scrutinise the master plan of the area concerned and ascertain for themselves
whether these claims would actually see the light of the day. These master plans of the area can be
procured from the local town planning department of your city. You should also make it a point to
carefully check the land use zone as per the master plan for the property.

4. House Plan Approval

It is essential that you ensure that the place where your property is located has been approved and
also verify whether the building plan has been approved or not. You should also check to see whether
any building bye-laws are violated. The building planning and the layout should be in accordance
with the guidelines of the National Building Code of India. The layout also needs to be in accordance
with the norms of GRIHA (Green Rating for Integrated Habitat Assessment).

5. Agriculture to Non-Agricultural Land Conversion Certificate

It is important for you to see to it that the plot that you are buying is not classified as agricultural
land. Any land which is designated as an agricultural land can’t be used for residential purposes, if t
is so done, then it will be rendered illegal. Therefore, if you have reasons to believe that the plot you
are purchasing used to be an agricultural property, ensure that you are provided with a conversion
certificate issued by the appropriate revenue authorities. A conversion certificate is needed to change
the purpose of land use from agricultural to non-agricultural. The town planning department of the
concerned city needs to issue a No objection Certificate for use of agricultural land for non-
agricultural purposes.

6. Land Use Certificate

Most of you would already be knowing that constructing a property for residential purposes in a
commercial zone is illegal. You need to apply to the development authorities of your respective city
to verify if the residential property that you are planning to buy is in the residential zone and not in
the commercial, agricultural or industrial zones. Residential properties shouldn’t be bought for
commercial purposes without the approval of the urban development authorities. Thanks to “Zoning”
you won’t be surprised if one fine day you get to know that you bought a plot for residential purposes
in a commercial zone and that too without the approval of the authorities concerned and your plot is
being demolished by them.
7. No Objection Certificate

No objection certificates should be obtained wherever necessary. The seller should provide you with
a copy of the urban non ceiling no-objection certificate and NOCs for water, electricity etc. as well.

8. Commencement Certificate

This certificate is essential for any construction of a property to commence. This is issued by the
town planning department after scrutinising the building layout, plan, superstructure etc. The builder
should have all the necessary sanctions before he sets out to construct.

9. Property Tax Receipts

Tax receipts should be checked to ensure whether the seller of the property has paid all tax accruing
on the property for the past 3 years to the authorities. You should ask for previous receipts of
property tax if you are buying a property that is being resold.

10. Sale Deed

Before executing a sale deed, the buyer should ensure that the property has a free title. Sale Deed is
one of the most important legal documents. It is a proof that states that the property has been sold and
the ownership of property has been transferred from the seller to the purchaser. Before executing a
sale deed all charges like property tax, electricity and water charges, maintenance and housing
society charges Care should be given to the fact that a sale deed needs to be compulsorily registered.

11. Khata Certificate/ Extract

Khata when translated to English means “account”, it is essentially the account of a seller or the
owner of the property.  A Khata extract is essential for buying property. This is of prime importance
for not only transferring a property but also for the registration of the new property.
Completion Certificate (CC), Power of Attorney, Probated Will, Occupancy Certificate (OC) etc. are
few the other legal documents that are essential at the time of buying property.