Legal Checklist For Buying A Property Which Is A Part Of Housing Project

Legal Checklist For Buying A Property Which Is A Part Of Housing Project

For many people, buying a property or house is a once in a lifetime experience and it takes a lot of efforts and planning to do so. With the real estate industry is evolving at a never before pace with plethora of options for homebuyers at display, it is possible that you might get confused. After all, purchasing a house is not an easy decision to make. – Buy a Property

There are numerous property-related documents that need to be signed during the home-buying process and you just can’t afford to skip any of them, especially when it comes to purchasing a flat or apartment which is a part of a housing project.

Here is the list of some important documents that should be checked before buying a flat:

1. Tile deed

It is the most important legal document required while buying a home. It is used as a proof of ownership of an asset. A buyer should check the original deed and confirm that the land is in the name of the developer, to ensure that no one else has the right to sell it. It is advisable to get the title reviewed by a lawyer.

2. Building approval plan

Prior to the construction of the property, a builder is responsible to get the necessary sanctions under the provisions of Building Bylaws, Master Plan, and Local Body Acts. The sanction consists of two major factors – the building plan and the layout approval.

One common mistake which the first-time buyers often make before buying a house or flat is not confirming if the builder meets all the terms and conditions of the building plan and layout approval.

3. Allotment letter

This document is necessary if you are planning to buy a property that is still under construction. Basically, the allotment letter includes all the details regarding the flat such as payment of the property, extra charges (if any) etc. Additionally, it is also important for availing loan from the bank.

4. Occupancy certificate

This document certifies that the building has met all the required building standards, local laws and is safe to occupy. OC is given by the municipal corporation or building proposal departments.

5. Completion certificate

A completion certificate (CC) is one of the most essential documents that you should obtain from the developer or builder while buying a home. You might feel like skipping this document to keep the long documentation process short. But before you do so, remember that this document officially legalizes the property.

Notably, the civic authorities issue CC when the construction of the property is completed as per the building approval plan and it also meets the other building standards such as distance from the road, height of the building, availability of rain water harvesting system etc, like buying a property.

6. Compliance with RERA

The Real Estate (Regulation and Development) Act 2016 mandates that the developers should register their projects with the authority constituted under this Act. Therefore, if you are planning to buy a property, identify whether it has been registered under the RERA Act or not.

7. Purchase agreement

As the name itself defines its purpose, purchase agreement mentions all the essential details related to the property, including its specifications, payment terms, deadlines of completion of the project, type and amount of the penalty and ramifications if any party defaults etc. It is signed by the buyer as well as the seller, confirming that both the parties are agreed to the terms and conditions.

8. Possession letter

It is another crucial document which a buyer needs to cumulate during the home-buying a property process. Drafted by a builder, it states the date of buyer’s possession of the house. Moreover, the possession letter also notifies the time period before which the buyer has to make the final payment and take the physical possession of the property.

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