List of Documents Required for Property Purchase or Home Loan

At the time of purchasing your dream house, one of the major problem faced by almost all buyers is to collate information on List of Documents Required for Property Purchase or Home Loan…I also faced same issue and i did lot of research on internet but could not find reliable List of Documents Required for Property Purchase or Home Loan. Almost all articles mentioned just list of 6-7 documents like Sale deed, Sale agreement etc.which everyone knew but since its life time investment therefore it is necessary to know complete list….Even after compiling list another major challenges were to understand

1. What is this document or What this document is all about?

2. Why it is required/relevance?

3. Is it mandatory to have this doc?

4. Should i ask for original or xerox?

5. Is it required for Home Loan or for Property Purchase?

You must have read a management lesson that in order to teach swimming, just push that person in water, this is how i collated list of documents required for property purchase & found out their relevance i.e. i answered all 5 questions in my compilation..For the benefit of my readers, i am pinning down List of Documents Required for Property Purchase or Home Loan (List of 33 documents) though all docs are not required in all cases but this is consolidated list..I will keep updating this list as and when i will come across any other document required but i tried my best to compile 100% List so that its easy for my readers to refer only 1 list. Those who just wish to go through the List of Documents Required for Property Purchase or Home Loan without going into document details can refer list after following download link. To download file, kindly click on following link

Documents Required for Property Purchase or Home Loan

List of Documents Required for Property Purchase or Home Loan: For detailed description of each of following, pls download the file

1. Sale Deed/Title deed /Mother deed/Conveyance Deed

2. RTC Extracts

3. Katha Certificate and Extracts

4. Mutation Register Extracts

5. Joint Development Agreement

6. General Power of Attorney

7. Building plan sanctioned by statutory authority

8. NOC from Electricity Deptt/Pollution Control Board/Water Works/ Air Port Authority

9. Supplementary agreement / Ratification Deed (if any)

10. Allotment Letter from the builder/co-operative society/Housing Board/BDA.

11. Sale Agreement between Builder and 1st Owner

12. Construction Agreement between Builder & 1st Owner

13. Copy of possession letter from the builder

14. Payment receipts paid towards the builder

15. If any loan on the property (Current or past)

16. Sale agreement with the Seller

17. Latest Tax Paid Receipt from the date of registration up to date (Property Tax/Municipal Tax etc)

18. EC up to date for latest 13 years or from the date of registration till date

19. Demand Letter from the vendor before disbursement

20. Own contribution receipt along with the bank statement from which you have paid your contribution to the vendor.

21. NOC from the Society/Building association.

22. No-due certificate from the building association.

23. Approved plan of construction/extension & license for construction.

24. Detailed cost estimate/valuation report from Chartered Engineer/Architect (if applicable)

25. Conversion order/betterment charges paid receipt.

26. Layout approval plan sanction

27. Auction Sale confirmation letter from Local Development Authority

28. Release deed (If applicable)

29. Completion Certificate

30. Occupancy Certificate

31. Loan/Charge/Mortgage by Builder:

32. DEED OF DECLARATION

33. Latest Electricity Bill

Hope this List of Documents Required for Property Purchase or Home Loan will be useful for my readers.

Copyright © 2011-2012 Nitin Bhatia. All Rights Reserved.

About the Author Nitin Bhatia (180 Posts)

I am a Blogger, Credit Counselor, Reviewer and Author of write ups on Real Estate, Personal Finance, Financial Planning, Home Loans, Marketing & Current Affairs. I write blogs for leading web portals in India.


  • suman

    hi nitin i m so thank ful to you for providing such a valuable information in a crisp and orgenised manner. your noble cause will certainly help the needy one.

    with lots of thanks and best wishes..

    Mr. suman thakur

  • Prakashshetty

    to what extent deviations from approved sanction plans are allowed pl advise

    • Nitin Bhatia

      Dear Prakash, Legally No Deviation is allowed from approved sanction plan. If there is any deviation then u might face problem is getting completion and occupancy certificate from concerned authorities. Tks

  • Smeet sinha

    Hi Nitin,

    I would like to ask something regarding the property documents.

    I have booked a resale flat in Mira rd, Thane. And i would be the “4th owner”. I have applied for the Loan in SBI and there a issue regarding the chain of aggrement papers. Bank is asking for the 2 more documents i.e “original agreement (registered)” and the “original canellation deed (registered)”, which happened between the “2nd Owner” and “Person XYZ” but due to some reason it did nt happened. And after the cancellation he sold it to “3rd Owner”. “2nd Owner” provided all the original documents to the “3rd Owner” except those 2 documents.

    The “3rd Owner” purchased this flat on Cash and less bothered about the Papers/Documentations. Now he is selling his flat, to me, and my bank is asking for those documents, he approached “2nd Owner” and came to know that the “Sale of agreement” was submitted to registrar’s office to make the “Deed of cancellation”. And when he asked for the “Deed of Cancellation” the “2nd Owner” clearly refused to handover it to the “3rd Owner” by saying that it does not comes under the “Chain of Agreement” and it belongs to him as it is cancelled.

    “2nd Owner” is a lawyer by profession.

    The “3rd Owner” tried to find out some truth in the registrar’s office and came to me with the finding that the “cancelled sale of agreement” & “deed of cancellation” does not belongs to the “Chain of agreement” and asked me to convince the bank about that.

    Could you draw some attention here please?

    Thanks
    Smeet Sinha

    • Nitin Bhatia

      I will not suggest you to purchase this property if requested documents are not available. Whenever a property is sold all the previous documents “Chain of documents” become the property of new owner. 2nd owner does not have any right on any of original documents. Any ways its not your problem. You clearly tell 3rd owner to arrange all documents i.e. complete the chain of agreements. If he is not able to do so then you should not buy this property.  

  • Arshad

    Hi Nitin,

    I Have a question regarding the piece of land i brought. hope you can answer.

    The Land was of total size 7392 Sq.Ft. and the link document is for the entire Land.
    The owner sold 1/3 rd of it, that is 2464 sq.ft. to Other person registered the part on the mew owner name and gave xerox of link Document (as he holds majority of it).

    Now, i purchased the same land from 2nd owner and registered on my name.

    I am planning to apply for a home loan and construct a house. But, the bank is asking original link Document. 

    As Majority of the land is still held by Prime Owner, i cannot get the Link document.

    Is there any other option for me to get the Loan.

    Thanks in Advance,
    Abdulla.

    • Nitin Bhatia

      Hi,

      1st you need to bifurcate the ownership of land with local development authority, which is called khatha or patta then only u can avail loan

      Thanks & BR
      Nitin

      • Arshad

        Thank Again Nitin.

  • Joshua Moses

    Hi Nithin,
    Its a pleasent surprise for me to see such a blog which helps us…I have one question..I am planning to buy 1500 sqft of approved plot in chennai sub-urb where the plot have a document history of 13 years, if i go for a loan the banker might ask me for a 20 year minimum document history, where I am not sure. Shall I go ahead and take this with a 13 year history. Awaiting your reply.
    Joshua
    9962009314

    • Nitin Bhatia

      Hi,

      I will not suggest. 

      Thanks & BR
      Nitin 

  • Chandra

    Dear Sir, Thanks a lot for compiling this list. Quick question : If i buy a plot(BMRDA approved /bangalore outskirts with LICHFL loan) does that imply LICHFL will do the due diligence and does it mean that plot is legally fine ? Or do i have to double check with a good lawyer.

    • Nitin Bhatia

      Dear Chandra, LIC will do the macro level due diligence but the end of it, you should hire good lawyer to get all the documents checked for your satisfaction.

      • chandra

        thanks a lot ! Macro level(done by LIC) does not cover all the points you have mentioned. Is that right sir ?

        • Nitin Bhatia

          yes

  • D Srikanth Reddy

    Hi sir recently ihad purchased a plot in a huda approved layout but one thing first link document is misplaced by the first owner now iam the fourth owner I had only two link documents past from 11years can I go for a construction loan ? Please suggest me.

    • Nitin Bhatia

      You shud have all linked documents to claim ownership. You may ask 1st owner to arrange certified copy of 1st sale deed and also put a notice in newspapers regarding loss of sale deed. I will not recommend to go ahead without completing this procedure.

  • saraswathi

    hello sir please let me know whether are they any banks asking for only 11years link documents past of the house to be constructed for home extension loan.

    • Nitin Bhatia

      It depends on bank but link documents are required from the date land records are available normally 70-80 years record.

      • saraswathi

        Thank you

  • gopi krishna

    hai

    may i know what is the use of link documents

    • http://www.nitinbhatia.in/ Nitin Bhatia

      It establish ownership chain of property and avoid any legal dispute

  • ag

    Dear Sir,

    I am planning to purchase a flat in resale,

    Owner got the possession 2 months back , still society has
    been not formed

    The estate agent is asking to follow below procedure

    1.
    To make mutual understanding documents to
    mention the token amount, scheduled date for agreement & payment terms

    2.
    Agreement will be done after approx 2 months, as
    the owner want to take benefit of tax on, selling the property after 3 years of
    booking?

    3.
    By the time NOC document from builder will be
    generated considering rupees 150/Sq. feet

    4.
    After completion of agreement & getting the
    last payment cheque of loan amount from bank, owner will hand over the original
    document of his agreement to me

    5.
    New agreement copy will be submitted to builder,
    for changing the name/transferring the property to my name, as it will take
    almost 2 years to complete the whole project & society transfer

    Kindly suggest if any correction need to take
    in process

    Regards,
    ag

    • http://www.nitinbhatia.in/ Nitin Bhatia

      The process is not looking OK. If owner has received possession then i don’t understand why builder is involved in 2nd sale transaction. Secondly, 100% loan is disbursed at the time of possession. Something fishy in this transaction. Broker is misleading you. Pls involve local property lawyer in this transaction.

      • ag

        Dear Sir,
        the agent provided me the scan copy of “owners loan closure”
        & few pages of sales agreement, which shows the property value of that time
        secondly for other documents are with builder,which he will transfer on my name after getting the cash & then they will generate the NOC
        normally what are the ideal steps, i should OR complete deal should follow
        waiting for reply
        Regards,
        Ag

        • http://www.nitinbhatia.in/ Nitin Bhatia

          After possession & registration, builder cannot retain any document. It seems the seller has not made complete payment to builder.

          Secondly, if loan is closed then all original documents must be with seller.

          In my opinion, you should not handover any cash.

  • Sachin shingate

    Sir last year I took home loan from lichfl,that time as a part of procedure lic done valuation of property, fees paid by me as a processing fee.that time they didn’t give me copy of it.now I have an requirement of that valuation report copy done in last year,I asked for lic but they refused to give it.will I get atleast xerox copy of valuation report ..
    sachin shingate,
    pune.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      LIC HFL is not bound to share valuation copy with you. You can get the valuation done from independent certified professional.

  • vijayendra

    I
    don’t have any sale deeds of the initial land ones . I only possess the deed of
    current one.

    Will
    there be any chance to get these old deeds/previous deeds from any government
    office?

    I presume these are being asked when we want to sell land.

    Another question i had is that my wife got this land registered from her step mother in the name of gift registration and the document says all the rights are with my wife. Since she is step mother , will there be any chances of issues of land rights for my wife in future.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You can get certified copy of previous sale deeds from Registrar office provided you have details of sale deeds like Sale Deed Registration no, date etc. When you will sell, the buyer will definitely ask for originals.

      If gift deed in your wife’s name then no need to worry as it certify complete ownership. Just check that gift deed should be registered in registrar office and secondly proper stamp duty is paid on same. Stamp duty is different for blood relatives and non blood relatives. In your wife’s case, she is not a blood relative of her step mother. Lastly, there should not be any financial transaction involved at the time of execution of gift deed otherwise it will be null and void if any of condition is not fulfilled.

      • vijayendra

        Hi

        Thanks for your reply. All the above are correctly done apart from stamp duty. Its registered in registrars office./ I got he old sale deds as well now.

        The registration is done as if that my wife is her daughter(own) with a stamp duty of blood relative. All the copies like ration card specifies my wife as her daughter.I think this can be the reason it was registered with stamp duty as blood relative. No where in any of the documents its mentioned that she is step mother.I mean in all the evidences attached to the deed from my wife’s birth indicates that she is her mother. My wifes mother has expired after my wife is born(within one yr) and her father is married to another lady and from then and there the step mother is taking care of my wife .

        Another question i had is that the step mother has another own daughter. Can there be any issues from her in future though the gift deed says is completely owned by my wife.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          In my opinion, the stamp duty should have been paid by declaring your wife’s mother as “Step Mother”. Legally she is not biological mother of your wife and law will consider her as Step Mother only irrespective what is mentioned in documents. Moreover in all govt documents like Ration Card step mother is mentioned as “Mother” only. There is no provision to mention Step Mother in govt records.

          Considering above point, if stamp deed is not paid for non blood relative since your wife’s mother is step mother. The biological daughter can challenge the technical validity of gift deed and court can declare the gift deed “Null & Void” on this ground.

          • vijayendra

            Hi Nitin

            Please let me know how to proceed in this case?

            Do i need to pay extra stamp duty for this and reregister this?

            Is there anyway if i hve to do reregister,can i do that without my wifes step mothers involvment as we now dont know where the people are and we dont have any contacts with them.

            Please let me know if we have any alternatives to overcome such situations.

            • http://www.nitinbhatia.in/ Nitin Bhatia

              Different states have different rules in this regard. I am sharing standard process. You may hire local property lawyer, he will help you in this regard

              1. Present your deficitly stamped instrument/document before any public officer or District civil court
              2. Public officer or court will impound (hold) the Sale Deed.
              3. You need to complete stamp duty along with the penalty else it will be declared Null and Void.
              4. The courts can collect 10 times of penalty. e.g. if the underpaid stamp duty is Rs.20000/-. The court may collect Rs.20000/- (underpaid stamp duty) + Rs.200000/-(Two Lacs) being 10 times penalty on underpaid stamp duty.
              5. Then you can present the document issued by court with penalty to District Register along with your sale deed & it will be adjudicated.
              6. The Registrar got the discretionary power to levy a penalty minimum of Rs.5/- and the maximum of 10 times of the deficit stamp duty but a minimum of 3 times penalty will be definitely be levied in your case.
              7. After collecting the underpaid stamp duty and penalty, the Collector will add a certificate under Section 42 of Indian Stamp Act, 1899, which is equivalent to payment of stamp duty.
              8. The adjudication process and collecting process is called as Validation under Indian Stamp Act.

  • Janhavee

    Hi Nitin, we are planning to sell our flat. We got the possession two months back.
    Some amount of loan is also there on property. We have found a buyer ad he has provided us token amonut(Rs. 1L), but no agreement/affidavit is done for the same. Is there any document to be prepared for the same?
    Also, Buyer is willing to take loan from the same firm from which we had taken loan. Can you please brief about the procedure and documents to be taken care of in this deal.

    Thanks,
    Janhavee

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Sale agreement is executed at the time of exchange of token money but It is the responsibility of buyer to take care of complete documentation part so you don’t worry. From your part, pls keep photocopy of all the original documents related to property including the documents you have submitted to bank. Secondly, pls ensure you get NOC from your loan provider after loan is transferred in the name of new owner. Though you need to handover this NOC to buyer but keep photocopy with you for future reference. Thirdly, after 45 days kindly check your CIBIL score to confirm that lender has closed your loan account in CIBIL database. Lastly, pls take back all the cheques you submitted with home loan lender for availaing loan or you can give instruction to your bank to stop payment for those cheques.

      Besides these 4 points, you need not to worry.

  • kv swamy

    sir,
    I want to sell my ancestors property. I do not have sale deeds. But we had municipal tax receipts, water bills, electricity bills with me. Kindly let me know the procedure to sell this property.
    mail: Swamykv2001@yahoo.co.in

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You should approach local tehsil office of your area where land records are available. Based on last land record available you can get the sale deed executed in your name, provided you are the only legal heir & have succession certificate. We need to check, in whose name last land record is available. You need to establish complete inheritance chain to claim the property. Without sale deed, you cannot sell the property.

      Tax receipts, water bills, electricity bills etc does not establish ownership on property

  • Prashant

    Hi Nitin,
    I have property with loan from a private Bank since 2004. Now I need to sellf off my property. Can I do that The buyer is ready to give me token amount so as to clear my outstanding loan. Alos please do let me know that in normally how many days Bank provide us with all our original documents including NOC, after paying full balance amount of loan to the Bank.

    Regards
    Prashant Sinha

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Yes, you can sell your property. You will get original documents with 2-3 weeks time depending on lender.

  • Rajesh Singla

    Hi Nitin, Thanks for your article, It is really useful.
    I am residing in Jind, Haryana. We are planning to buy home loan to construct already owned plot on my mother’s name.

    My mother is housewife and does not have ITR files, so i will be applying alongwith her as a co-borrower. Registry which we are having is 5 years old. I consulted many advisors they are asking for 13 years previous details of property. So can you advise me some solution for such case.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      13 years records are must to avail loan. You can visit local Tehsildar office of your area. You can get previous land records from Tehsildars office.

  • Santosh Balakrishnan

    Hi Nitin, Have been reading your articles since about a month now and find them extremely informative and detailed. I was checking out a property (new construction) that I will get possession for in about 2 months time (end of Jan 2014). I have very little idea of how to go through the home purchase thing. I took a home loan out in 2007 for another flat but paid little attention to the process.

    Could you please detail out a step by step procedure for buying a home through home loan? For e.g. Step 1: Give token through crossed check and take receipt for said amount, Step 2: Produce this to bank for home loan etc. I am a bit muddled on this, and would love for you to help out with simplified instructions so as to make sure this happens quick and easy.

    Details: Eligibility is confirmed, mostly going through a govt bank for 80% of project cost. No black money involved.

    Anticipating an early response from your end.

    • http://www.nitinbhatia.in/ Nitin Bhatia
      • lalana

        Dear sir,
        I gave advance for perchase of house in Hyderabad & Ec shows the details from 1999. Now documents such as waterbill, tax receipts, current bill ,current owner in Ec is the seller. But the sale done in yr.1985 was through notarized memorandum of sale to B & later in 1999 B sold it to c through registered sale deed and in 2000 c sold to D through registered sale deed to E who is the current owner of property . Pls. suggest can I go for perchase of the same ? or is there any problem with 1985 notarized memorandum sale dee?

        • http://www.nitinbhatia.in/ Nitin Bhatia

          It past, property transactions were executed through GPA or Notarized sale agreement…I don’t foresee any issue if current owner has all the original documents in place…Just include financial indemnity clause in your Sale Deed with current seller “E” to indemnify you from any legal issue due to this notarized Sale Agreement.

        • lalana

          dear sir
          Thank you very much

  • syed

    Hi I have all my property original documents except previous sale deed document, plz help me any alternate documents so that I can submit the bank.

    Please help me this is my mail address

    syedmardan@gmail.com

    • http://www.nitinbhatia.in/ Nitin Bhatia

      There is process to follow in case of lost property document. Register Police FIR that you have lost the original Sale Deed copy. You need to put a public notice in 2 newspaper (1 English and 1 Local language) mentioning that you have lost the property documents of your property through lawyer and if anyone has any objection then they can submit their claims within 15 days.

      After this you can obtain certified copies of your Sale Deed from registrar office. You can submit court affidavit to registrar of co-operative societies that your original sale deed is lost to avoid any fraud. You can also request for duplicate share certificate from society by submitting Police FIR copy.

      Submit all these documents to bank. I would suggest you to hire a good property lawyer who can help you in this entire process.

  • Rupesh

    Hello Nitin
    I am selling my house and buyer is insisting for documents for verification. Let me know do I need to take some token amount from him before giving Xerox copies for verification? or Do I have entered into an agreement with him. Please advice.
    Thanks
    Rupesh

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You can take some token amount and issue 2 receipts on 2 Rs Stamp paper each (1 for buyer & 1 for your reference). In the receipt, Mention that you are handing over photocopy of property documents for verification to buyer & Token money is non-refundable.

  • Mahendra Singh

    Hi Nitin
    Thanks for writing these great blogs. They really help a lot of people.
    I have a query. I am in process of buying a 18 year old flat. I would be the 3rd owner. The first owner lost the original sale deed and provided the certified sale deed copy from registrar office to the 2nd owner. He attached police complain copy but no news paper notices are there. The property is now registered on the name of 2nd owner and we have original sale deed from 2nd owner and certified copy from 1st owner. All other documents including the EC are looking good.

    Let me know is it good to go ahead with the purchase in this type of scenario.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      There is proper legal process to be followed in case original document is lost. The objective of newspaper notice is to inform & invite any objection from General Public as such.

      Though i will not suggest to go ahead but still if you wish to go ahead than you can do following:

      1. Make 1st owner as the confirming witness in your sale deed with 2nd owner so that 1st owner or his/her legal heirs cannot create any legal trouble for you in future.

      2. Get one clause drafted from property lawyer and insert in your sale deed that since 1st owner lost original sale deed therefore 2nd owner provide you blanket indemnity from any financial loss arising out of same in future.

      • Mahendra Singh

        Thanks Nitin for taking time to answer my query.
        For the point mentioned by you.
        1. The first owner stays out of India now and its not possible for him to be a witness in this case.
        2. Yes the second owner is ready to provide all type of blanket indemnity. He is ready to sign bond paper accepting all responsibility.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Legally if 1st owner or his legal heirs challenge the validity of 2nd sale deed executed based on certified copy of lost sale deed than 2nd sale deed will be declared null and void thus indemnity of 2nd owner will not hold as principal agreement only stands null and void. This is my personal opinion but as i have not seen all original documents therefore request you to take final opinion from property lawyer who can check all documents before providing legal opinion.

          In my opinion, if 1st owner cannot become confirming witness than you should not go ahead with this deal.

  • dixit shah

    Hi nitin please let me know the documents required to buy an auction property.Also the broker said because the owner wasn’t able to pay the emi so the property has gone for auction at half the property rate. is this possible.

  • http://www.nitinbhatia.in/ Nitin Bhatia

    It is possible that property rate under auction is half of market rate. I will suggest you not to deal with brokers/agents rather directly approach the bank for auctioned property. Some of the imp documents are

    1. All original documents submitted by defaulter with bank
    2. Public Notice 13(2) & 13(4) under Sarfaesi Act
    3. Two newspaper notice copy. One English and another vernacular/local language
    4. Possession notice
    5. Police Intimation

    6. Sale Certificate from Bank
    7. Sale deed in your name from the bank auctioning the property
    8. Latest Encumbrance certificate in your name (Post sale deed registration).

    It is advisable to hire a local property lawyer who can help in this process.

  • Yogesh Palrecha

    Nitin, I am buying a property in mumbai and the seller do not have original chain of agreements. There were 3 transactions before he purchase the flat. What do you suggest? Also he has not registered his agreement but has paid stamp duty.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I will not suggest to go ahead. I disagree with your lawyer, Public Notice is put for lost or misplaced documents but in this case there is no original document in place so what public notice we will put. Technically/Legally seller is not the owner of the property.

      Moreover i could not understand that Stamp duty is paid but agreement is not registered. It is unlikely, Stamp duty is paid at the time of registration at registrar office. To pay stamp duty, buyer & seller has to present sale deed for registration at registrar office else registrar office will not accept stamp duty. it seems stamp duty is paid to obtain stamp paper like in case on rental agreement etc. It does not hold any value. For property transaction, stamp duty has to be paid in registrar office depending on transaction value and sale deed has to be presented for registration.

      This kind of situation is common in rural areas where land records are still not computerized but i am coming across 1st such case in city like Mumbai.

      • Yogi

        Assuming seller is the true owner, what can he do to make this legitimate now. Can he go and register now? He bought this property from his sister who lives in same city. I have already made a token payment which is huge one and hoping bank to approve my loan. They gonna let me know on Monday.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Yes, he can register now by paying penalty but at the same time i am assuming his sister has original sale deed for transaction between her and owner before her. If she does not have sale deed then sale deed between brother and sister is not valid legally. Point is that there should be chain of events, if any event is broken in between then chain afterwards is not legally valid.

          • Yogi

            She has a xerox. Will that do? No one has original except current owner.

            • http://www.nitinbhatia.in/ Nitin Bhatia

              Nopes, it will not suffice…Xerox is just a piece of paper with no legal validity.

              • Yogi

                Thanks Nitin. So r we saying they will never be able to sell their house and there is no way to prove their ownership?

                • http://www.nitinbhatia.in/ Nitin Bhatia

                  :) I am not saying this but either he will sell at very heavy discount as this is very high risk property or the buyer should have very high risk appetite for such property. The buyer will find very difficult or next to impossible to sell this property.

                  Moreover no bank will ever approve Home Loan for this property

                  • Yogi

                    Totally Agreed. If I were to buy this property at a discount then what additional paper work would you suggest to protect and be safe to own this one?

                    • http://www.nitinbhatia.in/ Nitin Bhatia

                      I would suggest you to
                      1. Take blanket financial indemnity from seller. Get it notarized.
                      2. Include financial indemnity clause in your sale deed.
                      3. Mention in sale deed that you are buying this property only in Good faith based on documents shared by seller
                      4. Make his sister as confirming party in your sale deed as she was owner before him.

                    • Yogi

                      Will public notice and FIR add anymore value?

                    • http://www.nitinbhatia.in/ Nitin Bhatia

                      No, I don’t think so. Public Notice and FIR are required in case the documents are lost. In your case, documents are not available so what will seller report in FIR or what will be the content of Public Notice.

                    • singh

                      Dear Sir , I am looking to buying a plot but they donot have link document as said old owner lost ,but in EC all record is there , so would you suggest can I purchase this plot

                    • http://www.nitinbhatia.in/ Nitin Bhatia

                      The owner should declare them “Lost”. Please check following post
                      http://www.nitinbhatia.in/home-loan/original-property-documents-lost-by-bank/

                      You may purchase, if the process mentioned in above article is followed by the borrower from step 4 onwards.

  • Tushar

    Hi Nitin, I have bought an apartment a few years ago. Unfortunately, the sharing agreement is not done yet. Now I am planning to sell this house. Just wanted to check if it is compulsory to have it for buyer to get loan approved. Thank Tushar

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I am Sorry but i could not understand what do you mean by Sharing Agreement. As i correlate, it seems you are referring to Joint Development Agreement (JDA) i.e. agreement between builder and the land owner.

      If you are referring to Joint Development Agreement then it is required for Home Loan else pls share more details on Sharing Agreement.

  • Sunil v.h

    Hi Nitin,

    I need a help from you. Pls provide your expert advise. I am buying a flat in Bangalore on resale. The present owner is the 3rd one, wherein the first owner had a sale agreement with Bulder and presently the original is lost. The builder had the copy of it and is it fine to take that copy and submit it to bank for loan? from first owner to second owner the property has been transfered on a memorandom? is it sufficient? also from second owner to third owner again its trandferred on memorandom. The third party has a sale deed directly with builder. The property is registered with third part name and EC and Khata certificate is with third owner name. Is it safe to buy this property?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You need to check how many times property is registered. If the property is registered only once and that too between 3rd owner and the builder & was not registered by builder in the name of 1st and 2nd owner then no need to worry. 1st and 2nd owner have simply transferred the property before registration. In my opinion, this is the case.

      As i have not seen legal documents so better you hire local competant lawyer and get all documents verified.

      • Sunil v.h

        Thank you so much for your advise. The property has been registered only between 3rd party and builder. Hence the property is in 3rd party name from last 12 years and same is verified by EC and Khata certificate. As I am applying for a home loan, the bank is insisting for transfer documents and sale agreements or transfer documents between builder and 1st owner, between 1st and 2rd owner. Is it compulsory to have these documents? Though 3rd owner doesn’t have these, he obtained all these copies from builder (who maintained all these documents) and submitted to bank. Now bank will check with their legal team and get back to us. My worry is what if they reject the loan what options I have left? because already sale agreement is made.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          I don’t see any issue as such in your case if all the documents are provided to Bank. At the same time, it is mandatory to have all transfer documents to complete the transaction chain.

          It is the responsibility of seller to provide all the legal documents related to property…You need not to worry at all..If your loan is rejected due to failure in legal verification of property, you will get entire token money back from seller.

  • kunal kataria

    Hi Nitin,
    Can you tell me if a builder has the rights to sell his left property (which is some of flats and shop), where the property members (flat owners) have been registered and formed a society. do builder has the right still to sell the shop which is not sold earlier and also can sell the shop which is re-sale one. do he have rights to sell still.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Once the property is registered, Builder don’t have any rights on the property. He cannot sell the property after registration.

      Any property which is not registered or unsold, Builder can sell even after society is formed.

  • hotan

    I want to sell my property in new delhi but mother deed of the house is lost. how cani obtain duplicate mother deed?

  • grrao28@yahoo.com

    Hi , Iam planning to take Loan against Property from a bank .
    The plot and building against which iam planning to take the loan is donated to me by my mother after the death of my father . Is it mandatory to provide a legal heir certificat to the bank , when the sale / donor deed by my mother to me of the property in question has been furnished to the bank with all other reevant documents as asked by them .

    grrao28@yahoo.com
    GR RAO

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Succession certificate (Legal heir certificate) is required if your mother has not left any WILL & you inherited property under Hindu Succession Act. If she has executed Gift Deed in your favor then Succession certificate is not required.

  • Deepak

    Hi,
    I purchased a builder flat at new Delhi.. Registration date was 13th dec 2013.. All is via agent . On 13th after registration, he told me that 3-4 days will take and you will get your sale deed. After one week he told me that property was mortgaged and already loan is showing against the property so first registrar will verify whether loan is clear or not then he will release the deed… Please be noted regarding mortgage, I also have the bank no dues from the seller in which it is very clear that there is no more loan on that property…now its 6th feb 2013 but still i didnt receive my sale deed.. from more the 1- 1/2 month agent is saying tomorrow….
    Kindly suggest me what to do.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Ref to our chat, it seems there is a Lien on your Property either due to default by seller or due to some court case/legal dispute. If this is the case then seller has sold the property fraudulently. I request you to approach Sub-Registrar office and find out yourself the reason for same. Immediately you should hire good property lawyer to handle your case.

  • SRP

    Hi,
    I am planning to Buy a property. The said property purchased jointly by (B & C ) from (A) in 1974. In 2009 both (B & C ) has done the partition deed and sold to (B to D) and (C to E) 2012. Now (D) is selling the property to (F).

    1974 A —> (B & C) was Sale deed.
    2009 Between ( B & C) was Partition deed.
    2012 B —–> D is sale deed.

    2014 D is selling to F, He has provided the Partition deed,(2009) and sale deed (2012) but he mentioned he dont have the Link document related to 1974. Would like to know is the link document is required to posses it.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Yes, Link document is required to prove ownership. The original sale deed executed in 1974 cannot be provided to 2 parties as the property was divided between B & C. Original must be with either B or C. Now, there is a possibility of following 3 scenarios
      (a) Original is lost by either B or C
      (b) Original with C and handed over to E by C.
      (c) Original with B and handed over to D but D lost original

      You need to find out which scenario is applicable then only i will be able to suggest what needs to be done.

  • PG

    Hi Nitin,
    Kudos on the great blog, would require your advise on buying a property on the outskirts of Nasik (Deolali).

    The seller is the first owner and only has a payment receipt and allotment letter from the developer (no stamp duty/ registration or sale deed)
    Although the Seller seems to be genuine and has all the other necessary documents of the society viz. 7/12 extract, 6D extract, share Certificate, Commencement & Completion certificate, Latest Tax receipt of the Gram Panchayat and Society Registration in the Gram Panchayat.

    Are these documents enough to buy the property which a bank can finance in the form of a home loan?

    Thanks in advance.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      The documents mentioned by you are project related documents which anyone can have. I would not suggest you to buy this property as it does not have Sale Deed, which establish the ownership over property.

      You will not get Home Loan on this property.

      • PG

        Thanks once again for reverting with your expert advice. I am assuming that not getting a home loan is a big no no for buying the property even from my own fund resources.

        However just a small query, is Electricity Bill, Maintenance Receipts and Share Certificate in the name of the owner combined with the above documents establishes the ownership of the property?

        Regards,

        • http://www.nitinbhatia.in/ Nitin Bhatia

          As per the ruling of Honorable Supreme Court of India, Only registered Sale Deed establish the ownership of property. In case seller has lost original sale deed and has certified copy of registered sale deed then you may buy this property.

          In notified rural areas, people have occupied lands illegally and then got electricity bill etc in their name with the help of local politicians without property registration. Without copy of Sale deed i will not recommend to go ahead even if all other documents are in place..

          • PG

            Thanks a ton….

  • vittal

    Hello Nitin

    Great job here.
    As per your checklist the property i am planning to buy has everything in place except the mother deed. The banks are also willing to give the loan since it is a BDA property. But i am confused about the seller not having the parent deed but saying RR copy will be enough

    What do you feel?

    Thanks

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You may go ahead. Pls ask seller to declare that parent deed is lost by him & also include financial indemnity clause from seller in your sale deed against the lost parent deed. Follow basic steps mentioned in following post (Start from Step 4 & follow steps relevant in your case i.e. in your case bank is replaced with current owner)
      http://www.nitinbhatia.in/home-loan/original-property-documents-lost-by-bank/

      • Vittal

        Hello Nitin,
        Thanks for the update . I spoke with our lawyer and understood that the owner has all documents in place. But only the parent deed of previous seller was not there.
        All documents are up to date and we are also giving an advertisement in local newspapers for buying that plot to see if anyone has any objections.

        Thanks

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Its a right path..All the Best :)

  • Syed

    Hi Nitin

    First I would like to thank you for your informative blog.

    I need a suggestion where I am purchasing a property which was 2 original sales deed and the oldest one dated 1989.

    The property was sold twice before that for which we only have certified copy made in 1981.

    The Seller had taken loan from ICICI bank which he has cleared.

    Please suggest If I can go with the property as my bank is refusing give the loan asking for 40 year old original sale deed. my seller is ready to give Indemnity and Undertaking letter.

    Thanks

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You may check Encumbrance certificate of property. Also you may ask the seller to declare that old Sale deed is lost & tell him to financially indemnify you against the same in your sale deed to be executed with him. Since you have certified copy so i don’t foresee any issue.

      You may follow basic steps mentioned in following post to declare original sale deed as “Lost” by current seller.
      http://www.nitinbhatia.in/home-loan/original-property-documents-lost-by-bank/

      • Syed

        Thanks for the advise Nitin, I have checked the EC for the last 56 years and it is clear and shows all the owners as they are mentioned in Certified copies and Sale Deeds. The Link you have provided has given me great clarity on my issue and has put my mind at ease…

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Great…All the Best :)

  • Atul Verma

    Hi Nitin,
    I bought land in NCR Delhi and the land was bought with chain of title from the previous owner which was missing. I have owned this land since 1991 and with clear title.
    My question is how do I fix this error to sell the land without problems as some prospective buyers have mentioned this defect and show reluctance to buy.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I am assuming that you have certified copies of missing sale deeds else you may apply for Encumberance certificate. Through encumberance certificate you will come to know the details of previous transactions then you can apply for certified copy of missing sale deeds for your land.

      Once you sort this out, you can declare the previous sale deeds as lost/misplaced from your end. You may follow the relevant steps as highlighted by me in following post (Start from step 4)
      http://www.nitinbhatia.in/home-loan/original-property-documents-lost-by-bank/

      It will resolve your issue. You may take the help of competant local Property Lawyer who can help you in declaring original property documents missing.

  • deepesh

    I am interested in buying a flat in Thane. The person i am buying are the land owners who had given the rights to the builder to develop it. They had a agreement between them in which some flats (including the one i am interested in) was allotted to the land owner by the builder on ownership basis. Now the agreement of sale draft sent to me says that the parties to the agreement are builder as ‘Promoters”, land owners as ‘Confirming party” and i as purchasers. Also, in some of the clauses in the agreement, its says that the promoter is selling to the purchasers. So the confusion is who is the actual owner of the flat and is the draft agreement OK? Please help. Thanks.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You may ask for JDA (Joint Development Agreement) signed between Builder and Land Owners. You will get clarity from JDA who is actual owner of your flat. Prima facie it seems that Builder is owner of your flat.

  • Asif Inamdar

    Hi,
    I am Asif Inamdar from pune I am interested in purchasing the 1 bedroom property but the issue is that I am purchasing it from second owner and the documents of the builder to first owner(agreement) have been misplaced he has the certified copy of the agreement what should I do to buy this property..? please help me..

  • Goa

    superb..thanks for the details, I think you have covered almost everything. thanks again. Cheers!

  • Navin

    I am purchasing a resale flat and want to know , all the above documents needs to be origanl or it should be attasted xerox copies ?

  • chethan Jagathap

    Hello Sir,

    I just have quick question. I had bought a property from society in the year 1992 they had given us conditional sale wherein they had mentioned condition as, The property should be used for only construction purpose and loan can be taken from any of the financial co. Govt bank etc. Then in 1996 society issued NOC stating, society does not have any objection in selling property or taking loan from any finance co and banks. My property is Bangalore development authority approved land and it is A khata land
    My question is
    Can financial bank can provide me loan against property, I have constructed a home in my plot
    I checked with bank they told this is a conditional sale deed document so we can’t provide loan. So please let me know can I take loan against property by providing NOC doc.

    Regards,
    Chethan

  • http://www.nitinbhatia.in/ Nitin Bhatia

    You may not get Home Loan on Property bought through Conditional Sale deed. NOC is not the proof of transfer of ownership. You need to sign rectification deed to correct this problem.

    • chethan Jagathap

      Thank you for your valuable feedback and social welfare awareness sir. Sir as i am not applying for home loan and i am mortgaging the property to take loan, so i will be mailing the 10 point conditional sale document provided by society to you, please do check and respond to my e-mail.

      Regards,
      Chethan Jagathap

      • http://www.nitinbhatia.in/ Nitin Bhatia

        Sir, by only going through sale deed it is not feasible to reach at any conclusion. I would suggest you to hire a local property lawyer who can check all the documents and suggest accordingly. Thanks

  • RAJEEV

    hii i have paid token money to the bulder for flat in mahim east mumbai.. bulder has alredy removed the money from bank .. we also given post dated cheques for month of march .. builder says that he will take us for agrement only after i paid 80% of the flat price along with the sanction letter of bank for loan .. he has already started removing money from bank .. i do not have any document from him till now .. loan agent asked me to ask him for tds certificate otherwise they will cut 1% from from my loan aMOUNT .. I ASKED MY BUILDER HE TOLD HE WILL GIVE THE DOCUMENTS AFTER REGISTRATION.. WHT TO DO.. TELL ME PLEASE..

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You can demand xerox of all the project papers and also you must have signed Agreement to Sell & Agreement to Build with Builder while purchasing the property. Also you can demand payment receipts of all the payment made till now to the builder. As a borrower you have to deduct 1% TDS and it is your responsibility. I suggest, let bank deduct TDS from disbursement on your behalf.

  • vishal

    hi,
    i am planning to buy an old house. The problem is that the said owner got that house from his mother as a gift deed. there is no other earlier document is available that how her mother got that in her name. The said gift deed was registered in 1999. The EC taken since 1980 shows only one registration (on present owner name in 1999), the current bill is also on current owner name, the property tax also is on current owner name, the water bill is on his grandmother name. please suggest if i can buy this house? and can i get loan to buy this? if yes from which bank?
    regards,
    vishal

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I will not recommend. You might find it difficult to get home loan.

      • vishal

        Hi Mr Nitin,
        Can you please elaborate your response, the reason for not recommending to buy, the risks involved and mitigation of the risks.
        thanks
        vishal

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Electricity Bill and Property Tax etc in a persons name are not proof of ownership. It seems its a ancestral property and transferred from either Grand Mother / Grand Father to seller’s mother. As the mother sale deed is not available therefore in future legal heirs of Grand Mother / Grand Father may challenge the Gift Deed and stake claim in the property.

          Even if original sale deed is not available, you may request seller to get certified copy from local Tehsil office or Sub-Registrar Office. In case Mother Sale Deed is never signed than there is no question of buying this property and is not recommended legally.

          • vishal

            thanks Nitin ji, however the mother is the only daughter of the Grand mother. and this mother given gift deed to her 4th son. other 2 sons and 1 daughter (with her husband) are all ready to give NOC /Sign while selling the said property. please suggest if i can proceed? and if yes then what kind of writing i can take from all of them?
            regards,
            vishal

            • http://www.nitinbhatia.in/ Nitin Bhatia

              Pls make all legal heirs as confirming party in your sale deed. Secondly, you may follow process from step 4 in following article and get original “mother sale deed” declared as LOST by the current owner…After this you can buy

              http://www.nitinbhatia.in/home-loan/original-property-documents-lost-by-bank/

              • vishal

                sir how can i declare as LOST? even it is lost there will be records and also in EC (which currently shows only gift deed registration). as we know sale deed was never done. also i came to know that adjacent plot (presently house) also was haveing the same gift deed only by my current owner’s mother only.

                • http://www.nitinbhatia.in/ Nitin Bhatia

                  If there mother sale deed was not executed, i will not recommend you to go ahead with this transaction. It can declared Lost only if it was executed but not traceable.

  • Sachin

    hi i am purchasing the flat and i will be the third owner flat is a resale flat and previous two owner have taken loan from same bank and all orignal documents should be with them but the orignal sale deed of 1st owner is not stil attached and bank is also not haveing record of 2006 so what should be done second owner have done internal BT with the bank so hew has not even seen the orignal of 1st owner so how to proceed further

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Pls tell the seller to get list of documents with bank and share with you. It will clarify whether sale deed of 1st owner is with bank or not.

  • purva

    hey sir
    can you plz help me i am not aware of all this thing but i want to purchase a flat in mumbai.and if their is any cheating done by builder or owner then how i recognise ,how to check property is legal. and what if agent also cheat with us?

    thanks in advance.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You may go through my articles in real estate section. I tried to cover all the concerns raised by you. Also i suggest you to hire local competent property lawyer who can help you in purchase and verification of all documents.

  • Sujoy Lahiri

    Dear Sir,
    Please note that I have a house of Ground Floor. Now I want to build 1st and Second floor(Partially).I want to take Home Loan of 11 Lacs. I have documents like Deeds, Succession certificate , Approved Plan, Updated tax receipt but BLRO Mutation and parcha has not done yet .In this situation, Is it possible for me to get Home Loan. My CTC is 7.30 Lacs. Please guide me.
    Regards,

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Without BLRO Mutation and Parcha it is difficult to get Home Loan. I suggest you to hire a competent local property lawyer who can help in this. As you already have approved plan and tax receipts, you will not face much difficulty in getting these documents.

  • Sreedhar Buddhawar

    Dear Sir,
    I want to transfer my Home Loan, I have choosen IDBI for transfer,
    Loan Sanction letter has been received.

    Now the Bank is saying following as a mandatory requirments.
    1) 0.2% of Loan amount as a Stamp Duty
    2) Franking Notary Charges @4500rs.
    3) Loan Insurance.
    Pl suggest. all the above are mandatory

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Its seems Point 1 is for Sale Agreement stamp duty, as you already have Home Loan & signed Sale Agreement therefore it is not required

      Point 2 looks to be MODT charges which is normally 1% of loan amount and is mandatory. You need to pay this

      Point 3: Loan Insurance is not mandatory.You may refuse the same.

  • yogesh r

    Sir
    I hv buyed a resale flat. I hv previously applied for sbi home loan bt they rejcted my file but at that time I hv askd noc from society and they gave the same for 35000 rs. But now as i hv applid for loan from axis and loan is ready to disburse but now the society is again asking for noc charges rs 35000
    Pls help me

    • http://www.nitinbhatia.in/ Nitin Bhatia

      It is common practice in Maharashtra. I don’t think that to issue No Objection Certificate, Society is charging 35k. Please check Society By-Laws regarding same Also check whether amount charged is No Objection Certificate (NOC), Non Occupancy Charges (NOC) or Transfer Fees. Sometimes there is confusion between these charges

  • yogesh r

    Noc charges 25000 and society donation 10000
    Actualy i will get reciept of 25000 only and not of 35000

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Association has to issue payment receipt even if it is donation to society. In short, it is Bribe. If you wish, you may complain to registrar of societies regarding same.

  • Sandesh

    Hello Sir, I am second owner of my flat & now i am selling that flat..but second party (Buyer) is asking for first agreement between Builder and 1st owner for his loan purpose, but i am not having that documents, please suggest me any solution.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      This document is required. You must have received this document at the time of purchase or it must be with the Bank from which you availed Home Loan. You may check with 1st owner regarding same.

  • krishna

    hi
    My name is Krishna. I have a question. I have a property which my father bought more than 30 years ago. My father passed away way back and around 2 years back my mother passed away as well. After my mother’s death, i came to know that we do not have any property documents. from the last 3 years i am not staying at that property. i am staying on lease at a different property and the my property is on rent. The electricity bill is under my name. we dont get water bills. i do not have siblings. Is there a way i can get my property documents. i have the electricity bills way back to the 1980′s as well. Its actually a chawl.I have prepared an affidavit that the property belongs to me. but i want to know if that is enough as a property document. i am not sure what needs to be done or who can help me getting a duplicate document of the property. The land where the chawl is situated belongs to trusty of a hospital which is behind. also i want to know hat are chances of redevelopment. Please help sir.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Affidavit is not a proof of ownership. You may check with Sub-Registrar office (If property was registered) or with Local Tehsil Office for records. Also if you know any owner in same locality who bought the house at the same time as your father than they can help you out i.e. what all documents were available at the time of purchase and how the property was transferred.

      If the land is still in the name of trust than you cannot go for redevelopment.

  • WILSON

    Dear sir, I am wilson from Kerala. I have started to build home at my property where my father given through settlement deed 2 months ago. But this property not have original prior deed it is misplace and we have only certified copy. This deed registered around 50 years ago. My father have 3 more elder brothers. But all are sold their share many years ago and two are expired. Problem is when I going for home loan bank asking original Prior deed. What will I do.

  • krishna

    Hi sir,
    This is Krishna again. Thank you for the information provided. I just have some more questions. Please provide the address of the Sub-Registrar office and Local Tehsil Office for records offices in mumbai. I want this to be sorted out asap. and also if you know any legal firm who can help me get my property document without me running around. i am aware that they will charge some kind of fees and that is okay with me.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      There are many sub-registrar & tehsil offices in city covering different areas. You need to check under which sub-registrar & Tehsil office your property is located.

      You can take help of your friends or acquaintances to identify right legal firm.

  • tanmoy

    hi sir, i came across to buy an old tenement about 30 yrs old and the buyer says that at that at that time allotment or possession letter was not there so is not available with him, i want to know was the case like that?

    regards
    tanmoy
    gujarat

    • http://www.nitinbhatia.in/ Nitin Bhatia

      He might be right as it is 30 year old property. You check rest all documents specially EC and Sale Deeds…If rest all documents are in place except possession letter, i don’t foresee any issue. You can take possession letter from him at the time of purchase.

  • yashpaljangid

    Dear Nitinbhai, Please advise about land proportion in flat sale in Dadra and Nagar Haveli.
    we have purchased flat in 1995 and Still Builder not ready to handover the society to flat owners. please advise whether owners have right on boulding land also or land belongs builders only.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      It is called Undivided Share in the property & is normally mentioned in the Schedule B of your Sale Deed. You have not mentioned whether association is formed or not. You may approach Registrar of Societies if builder is refusing to handover society to flat owners. Owners have undivided right on the land within apartment complex.

  • P Borkar

    Hello Sir, I want to buy flat from 1st owner of flat. What legal documents should i check with him.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I have mentioned complete list of documents in this post. Pls check above post.

  • KV Suresh

    HI Nitin, Thanks for providing detailed info. it will always help us.
    Rgds,
    KV Suresh

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Thanks for liking the post…Keep Reading !!!

  • Shadab

    Hi Nitin,
    Builder sent me a soft copy of draft which they are going
    to use for agreement (For purchase of under construction flat), there
    are lot of clauses which may not be in my favor, builder is saying they
    have standard format of agreement for all customer and they wont change
    it for anyone, please suggest how can I make him revise some of the
    clauses? is it ok to ahead with the same if it is same for all, there
    are more than 250 customers in this project and builder is using the
    same format for his other 6 projects as well.

    Can I send you soft copy of it on email for review?
    Are there any specific clauses should be looked at? let me know what care should be taken while registration process at registrar office?

    I have paid Stamp Duty & Registration cost via RTGS to builder but he
    did not give me receipt for it, he said I will get the same from Govt.
    Registrar office, is it ok?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      The legal clauses should be neutral. If you feel some clauses may cause some issues in future than you may request to get it changed. It is not necessary that if others are accepting than you should also accept.

      I would suggest you to get it verified from property lawyer. I am not a lawyer but if you wish, you can mail me the draft. I will check from property consultant perspective. Also you may hire a lawyer for registration process who can help you in registration process & check all the details. My mail id is info@nitinbhatia.in

      The payment receipt of Stamp Duty and Registration charges will be issued by Sub-Registrar office.

      • Shadab

        Builder is taking additional 8K as legal charges & told me to just appear for registration & need not hire a lawyer.

        I will send draft on your email, please review and share your comments. I will be grateful to you for this.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          I will revert in couple of days…In my opinion, you can rely completely on builders lawyer. Though you are paying for lawyer fees but he will be paid by builder.

          • Shadab

            Thanks Nitin, I will wait for your comments before I take it forward.

          • Shadab

            Hi Nitin,

            Please share comments on the draft.

            • http://www.nitinbhatia.in/ Nitin Bhatia

              I have shared…Thanks

  • Shubham Agarwal

    Hi Nitin,
    I visited Nishant Prime in Whitefield, Bangalore for a 2-BHK. However, the builder is saying that he cannot provide OC however he has the SBI loan-approval letter, which he did showed me as well.

    Do you think it would be safe to go ahead with the flat booking keeping in mind the above facts ?

    Regards
    Shubham

    • http://www.nitinbhatia.in/ Nitin Bhatia

      OC is issued after the Project is completed. If it is under construction property than OC will not be available at this stage. You may check other documents and if everything is in place than you may go ahead. OC will be provided after completion.

  • Abhishek Jain

    Hi Nitin,
    Your blog is very informative
    Actually I am looking to buy a 11 year old flat
    Got to know through neighbour(who was also the 2nd owner) that flat is not registered yet and i have to do it by my own
    As we as he told that the top floor is not legally constructed
    Pls suggest a short list of document i can ask from the seller to make sure about the property legallty
    Thanks in advance

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I have mentioned the list of documents required in this post. You may check the post

  • Rishabh Saha

    Hi Nitin,
    Your blog has been really helpful.I just wanted to understand what steps should be taken if we have misplaced the Allotment letter. I had applied for an education loan. But since I dont have the original allotment letter (I have the xerox), the bank says it can’t proceed with mortgaging my flat for the education loan. Kindly advise.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      If the allotment letter was issued by builder than you may approach builder for duplicate copy and if it was issued by Govt Development Authority than you may give a request in office of Development Authority to issue certified copy of Allotment letter.

      • Rishabh Saha

        Thanks Nitin

  • nandan

    Hi Nitin,
    I recently bought a flat from a known builder in Chennai by making upfront one time payment without any loans. They got the flat registered and gave me the sale deed too. The builder had earlier taken loans from a couple of banks for building this project. Now I learn that he even mortgaged this project with the bank for further loans. Upon inquiry I was told that only the unsold units were mortgaged. I asked them for the NOC for my flat which they refused saying i do not need that since I already got my flat registered and have a sale deed. Please advise if NOC is mandatory for me to procure and if yes then how to obtain if the builder does not cooperate.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      As i understand correctly, Builder mortgaged the Title of Plot and took loan from banks to construct the project. In this case, you may ask for NOC issued by bank to builder for sale of flats.

      As a 2nd step check please check when builder mortgaged the project with the bank i.e. date on which project is mortgaged. Also complete project is mortgaged or only unsold inventory is mortgaged. If the date of project mortgage is after the flat is sold to you than you need not to worry. Builder cannot mortgage after he has sold the apartment.

      Only need to check is whether entire project is mortgaged or only unsold inventory. If you know the name of bank (Project is mortgaged) than you can get these details from bank also. If only unsold inventory is mortgaged than you need not to worry and don’t need any NOC. If entire project is mortgaged after the property is sold to you than you may file criminal case of cheating against the builder.

      In 3rd scenario if the project was already mortgaged at the time of your sale deed than you need NOC from bank issued to builder that he can sell the flats . If this NOC is not available than also you can file criminal case of cheating.

      • Nandan

        Hi Nitin! I really have no words to express my gratitude for the insight you provided to me and many more out there such as me. Since I live outside india its been so much difficult to get a clarity on these related matters. I wish to be in touch with you on further developments if its ok with you. Thanks a lot!

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Thanks for your kind words. You may contact me in future for any matter related to real estate. Thanks !!!

  • Puneet Chauhan

    Hi Nitin,
    I have booked a flat in under construction project , although builder has constructed super structure of my tower and two more tower within 18 months but left over 4 tower (higher range) still not started. Builder promised to give Possession in 2016. Is it signalling default or more delay . Should I be In this project ?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I don’t think so that there is any reason to worry as of now. You may check with builder when he is going to start the construction of rest 4 towers. He can complete 4 towers in 2 years time.

      • Puneet Chauhan

        Wether A builder can offer possession without completion of other towers ?? If yes,than completion or occupancy certificate will be provided or not ?

        • http://www.nitinbhatia.in/ Nitin Bhatia

          As and when any tower is completed, builder can offer possession to owners of completed tower. Occupancy and Completion Certificate is provided for apartment complex i.e. when entire project is completed.

          • Puneet Chauhan

            Dear Nitin , is it better to accept possession in such a case (in fear of loosing it) and wait for other tower to get completed . If yes , than how does builder provides water , power etc. without those certificates?

            • http://www.nitinbhatia.in/ Nitin Bhatia

              Electricity is provided through power back up generators and water through external supply. You may clarify these points with builder before taking possession…In my personal opinion, you should take possession.

              • Puneet Chauhan

                Nitin , thanks a lot for your precious advice. Kindly clarify, how much deviation is permitted after approval of layout plan, like In my case where 4 tower yet not started , now in case of slowdown/less booking whether can builder change total build up area , No of bedroom , No of Floors etc. of these 4 towers.
                Nearby projects are already having sufficient unsold inventories.

                • http://www.nitinbhatia.in/ Nitin Bhatia

                  There is no written rule on deviation but generally a deviation of upto 8%-10% is ignored by the Govt Authorities. Builder can change the layout of towers not started yet after accessing demand situation but it is only anticipation. You should have approved layout plan with you for future reference.

                  • Puneet Chauhan

                    Thanks very much for your valuable advice ..You are doing great job by helping common investor like me .thanks a lot once again

  • vijay

    Hi Nitin,
    I am planning to book a ready to move in flat. Builder sold it to buyer A, now buyer A sold to Buyer B. Both have not registered the property. I am buying property from buyer B, who is now a agreement holder. Buyer A Sale and Construction agreements are missing. Though there is a NOC from buyer A to builder on a simple paper saying he is relinquishing his all rights on apartment. Builder and Buyer B are also ready to give me a NOC on a letter head with signatures saying buyer A is no more having any right on the property. Please tell me what to do in this regard ? is it safe to buy ? it is bit urgent, prompt reply will be appreciated. Thanks Vijay

    • http://www.nitinbhatia.in/ Nitin Bhatia

      If any property document is lost there is process to be followed. Now in my opinion, Buyer A should provide following documents
      1. Register Police FIR & provide copy of same
      2. Prepare court affidavit cum indemnity bod that original documents are lost by him and in case of any future claim he keeps future buyers indemnify against any claim on property.
      3. Should issue public notice in 2 newspapers regarding same (One English and another vernacular newspaper)

      NOC on plain paper does not hold any value as such and you never know who has signed this paper. The reason for all these safeguards is that these days it is very common that builder sell same flat to multiple people. If there is any missing link than it is necessary to legally safeguard buyers interest because 100% risk is of buyer only.

      • vijay

        Thanks a lot Nitin for quick reply. In this current case what buyer B has done, he paid all money to Buyer A. Buyer A has closed his loan in SBI. So from buyer A we have only two proofs, SBI loan closure mail and a NOC saying i relinquish all my rights on a plain paper.
        Now Buyer A is out of picture and unable to track (US etc), but Buyer A Original Sale and construction agreements are missing. Buyer B is saying builder might have destroyed them, as builder issued him a fresh and separate sale and construction agreement between builder and him. This way they took off buyer A completely. Only reason i know about buyer A is that buyer B told me so. (or Builder file also contains buyer A starting documents as well). What do you suggest to it ? I want to safeguard my interests completely. It is amazing to see you are responding so quickly, thanks.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Buyer A cannot be ruled out completely because of 2 reasons
          1. He took loan from SBI which is record that he bought the property
          2. Buyer B paid to Buyer A which is transaction proof of same

          Since Buyer B paid to Buyer A therefore 1st you need to check whether any transfer agreement was signed between Buyer A, Buyer B and Builder. I am sure it must have been signed else how come Buyer B made payment to Buyer A i.e. Without any agreement Buyer B would not have made any payment to Buyer A.

          Just check on this point than we will decide how to take it further.

          • vijay

            Thanks Nitin for your reply. Yeah sou are right, buyer B also has a original 200 Rs Stamp paper agreement between Buyer A and B, calling sale agreement. In which detail cost breakup is there. Which shows that how much buyer B to give A for sale of property and how much buyer B to give builder etc. That’s the only document they have. Builder is no where on the agreement.
            Buyer B also went to SBI for loan, but they never mention about buyer A. So he is also having a SBI loan, without any buyer A docs to SBI.

            • http://www.nitinbhatia.in/ Nitin Bhatia

              Though i have not seen the property documents but Prima facie i will not recommend that you should buy this property. Any property purchase based on mis-representation of facts or if the facts are concealed at any stage may put you in legal trouble in future. If you are keen to buy this property than i suggest you to hire a local competent property lawyer who can verify all the documents and will suggest accordingly.

  • Dilip

    Hello Nitinji..I wish to purchase a resale flat where some alternations are made ? What precuations do you suggest ?
    Dilip

    • http://www.nitinbhatia.in/ Nitin Bhatia

      If Local development authority has issues Occupancy Certificate and Completion Certificate than no need to worry.

  • Raju

    Hello Nitin,

    Thank you for the wonderful article.
    I am planning to purchase an independent house in Bangalore. I have seen one property.

    The current owner is already sold that property to one person. The registration is not yet complete. They are just done with their aggrement.

    Now the buyer would like to sell the property with some profit margin. This buyer is saying that he will arrange for aggrement after his registration.

    Do you think is it safe to deal with these? If so, what are the documents I should ask him now.

    Thanks

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I will not recommend as the seller is still not the owner of the property. Any transaction in this case till he register the property in his name is legally null and void.

  • Maddy

    Hi Nitin,

    Very nice blog and quite informative.

    I am planning to purchase a plot in gated community in bangalore.
    While discussing with the people who have already brought the property, i was informed that the property is approved by BMRDA. After registration of their property in their name they have received KHATA which is issued by Panchayat Raj.
    1) Is it the correct way of registration of property(khata received from Panchayat Raj).
    2) What is your opinion of purchase of such property .
    3) What are the documents one should receive after the property is registered in his/her name .
    Thanks in advance for your time to respond to my queries.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Just to check which Khata will be received after registration i.e. (a) 11B Khata or (b) Panchayat or Gramtana or CMC Khata. If the site is BMRDA approved then DC conversion should be in place. Kindly confirm whether DC conversion is in place or not.
      1. If DC Conversion is in place and site is approved by BMRDA then i don’t foresee any issue
      2. Though i have not checked property documents but you may go ahead provided Khata is Panchayat or Gramtana Khata but not 11B Khata. The 1st condition should be met at any cost.
      3. Check the content of this post

  • Rak

    Hello, I sold a home and buyer paid 50% of payment already, rest was to be paid on loan he was to receive from bank. While waiting for it, we went ahead and did Dastavej. Buyer received check from bank loan to complete remaining payment. However, he is not giving it to my father, just avoiding it. What are the options now? Can we cancel Dastavej? As far as my father is aware, check was issued to his name, and buyer was just to hand it to him. Thanks

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You have not mentioned whether property in your name or jointly held by you and your father. Before taking any drastic step, I will suggest you to discuss with buyer and find out why he is not handing over balance payment.

      • Rax

        My fathers name only. Buyer wants all document of property first, we told him that we can’t trust him anymore the way he is avoiding to hand over check. We said that we can exchange check n documents by meeting at bank same time. We showed him all documents too. He just dragging this for no valid reason.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          I agree with you that you can exchange Cheque and original documents simultaneously. You can discuss the same with buyer and find out reason for delay.

  • Zuber Moinuddin

    Dear Sir,

    I have just finalized a property/ flat in Hyderabad.

    can you please provide an insight what documents I should ask the builder before registration.

    The plot on which the construction is done is on the basis of development agreement between the owner and the builder.

    Regards
    Zuber

    • http://www.nitinbhatia.in/ Nitin Bhatia

      In your case registered JDA (Joint Development Agreement) is must. For complete list of documents, pls check following link

      http://dxv9s14v9bi65.cloudfront.net/wp-content/uploads/2012/04/Documents-Required-for-Property-Purchase-or-Home-Loan.pdf

      • Zuber Moinuddin

        Thanks Nitin for your reply

        Just one small doubt

        what is a link document and is it mandatory in my case to get a copy of the plot link document and EC on which apartment is constructed from the builder or it is covered in list of documents you have elaborated.

        Regards
        Zuber

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Link documents are nothing but title deeds / sale deeds of all previous transactions to establish the ownership. All link documents should match with transactions in EC. In short you should have all original title deeds of transactions listed in EC. As you are buying from builder therefore you should have copy of RTC extracts. I have covered everything in list of documents.

  • Anoop

    I want to buy a property in faridabad, HUDA plot in resale with 30% cash component. Could you pl. guide me the process of deal to avoid any fraud?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I will not suggest any cash transaction in property deal. There is always possibility of fraud in cash deals.It is illegal under the law of land.

  • Ali

    Hello Mr. Nitin,
    I have recently entered into an agreement for sale and got it registered. It is a resale flat.
    I am availing loan and the cheque is ready. Can you pl. advise what will be the correct final document – a Sale Deed or a Conveyance Deed, or a Deed of Assignment??

    • http://www.nitinbhatia.in/ Nitin Bhatia

      All 3 are different. In layman terms, Conveyance Deed is same as Sale Deed but legally All deeds which transfer property right are Conveyance Deed. Sale deed is one of them therefore Conveyance Deed and Sale Deed is one and same thing. The right, interest and title of the seller is transfer to buyer in both sale deed and conveyance deed.

      Under Deed of Agreement some or all assets of an insolvent debtor are assigned to a trustee for the purpose of selling them and distributing the sale proceeds equitably among the creditors. Deed of assignment may be conditional in nature.

      • Ali

        Hi nitin. Thank you for clarifying.. But I am still confused. My query is what should be the correct final document as i am byying a resale flat and my agreement to sale is already done and registered. Stamp duty is also paid. Cheque is rrady with the bank and my lawyer is suggesting to undergo deed of assignment. But i am not sure. Can you pls help

        • http://www.nitinbhatia.in/ Nitin Bhatia

          As i mentioned, you should go for either sale deed or conveyance deed. If your lawyer is suggesting for deed of assignment then prima facie it seems the seller is defaulter.

  • bharat ram

    can u help me, for housing loan now, adjudication of last sale agreement in June,2003 of the flat in the cooperative housing society is compulsory ?? even when share certificate and all other records are clean and clear in my name, i m seller now.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Seems the property is in state of Maharashtra. Also it seems the sale agreement was not registered or stamp duty was not paid at the time of purchase. If this is the case then adjudication of sale agreement is compulsory even if you have all the documents in place.

  • KK

    Nitin Sir,

    I want to ask you about the process after the registration of property.

    I m in process to purchase a resale flat in Kandeshwar (Panvel). Bank has sanction a loan and given cheque to seller and settle sellers pending bank loan by cheque. I have done registration at panvel and got receipt of documents.
    Now my broker is saying that the second registration is pending. For that i need to submit acknowledgement of cheque received by seller and receipt to the. and letter on required Cidco registration.
    So i want to only known that is that right process or any else process pending after registration of flat.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      There is no process called second registration. In Maharashtra, it is mandatory to inform the sub-registrar if the property is mortgaged to avoid fraud. Within 30 days of executing mortgage deed, you need to submit requisite documents to sub-registrar office informing that property is bought on a Home Loan. I think broker is referring to this process as second registration.

  • Sw

    Dear Sir,
    Thank you for such an informative article, also good of you to offer your advice to the comments.
    I have the foll query
    1. I intend to buy an old flat in Mumbai in a good society for which I have done a property search.
    2. The building was constructed in 1975 and sold by the developer to party A in 75. After the death of A it went to her son B. (no documents are available for this). B has sold it in 2007 to C. (this agreement has not been registered). On the death of C it went to his son D by means of a release deed from all the siblings of D. However there is no succession letter for D and there is no signed nomination letter for D.
    3. D now wants to see this property to me. The share certificate has all the names from ABC to D.
    4. D is an NRI who wants to come to india for 6 days take the money and give me the flat and go away.
    5. Currently i reside in the same flat on a leave and liscnece agreement.
    My questions are 2
    A. Legal: Can the missing documents be made in order as A B and C are all dead. If so can I do them?
    the bank i insisting on the registration of the agreement between B and C and the succession letter from the court.

    B Loan: The seller is insisting that he be paid my contribution 60% and the bank loan 40% on the day the agreement is registered. The bank is refusing as it wants the document to be registered first and the loan amount be paid 15 days after the registration. So it is a stale mate.
    he is ok with an MOU for sale and then registering it, however the bank has insisted only the sale deed be registered and then the money be disbursed. He feels if the bank rejects the loan for any reason he looses his house as it is registered in my name.( all this assuiming the title is clear)

    Can you kindly let me have your opinion on the same.
    Thanks in advnace.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      A: No, you cannot execute any document on behalf of previous owners or people who are not alive. I concur with bank, all link documents should be available and succession certificate is required else the legal heir of person C may stake claim on property in future or any other legal dispute may arise. Secondly, just note that building will go for re-development shortly therefore valuation will hit roof after re-development. Normally any such events trigger legal disputes if the documentation is not complete.

      B: You are missing important point, The person is NRI and you need to deduct TDS from the payment and deposit with Govt treasury. I am not sure why bank is insisting on payment to be released after 15 days. Normally payment is released on the day of registration. Only bank can give the exact reason.

      • Sw

        Dear Sir,
        Thank you for your prompt reply and your advice. i have had a chat with a lawyer and he has the following observations especially on point A
        1. The registration between B and C is a must for the title to be clear and mortgageable. No registration is possible now in retrospect of this document and hence no equitable mortgage is possible now or in the future as B and C agreement has not been registered. A few respected banks from the country will not sanction loans on such property. However the lawyer has suggested many of the well known banks will allow this and give me a mortgage on the same.
        I want to know what is the implication of this matter and how does it affect my status when I sell the flat in the future. The lawyer has not been able to give me a satisfactory answer.
        2. in the absence of a will or a nomination letter, all the siblings of D have signed a release deed in favor of D allowing him the ownership of the said property. D has thus all the share certificates in his name. In this case is a succession letter required?
        3. The release deeds have all been registered and the seller is insisting that if the latest (release deed between D and his siblings has been registered) how does it matter of the agreement between B and C is not registered?
        4. Will the government allow a document to be registered for a property that has not been registers earlier?

        As for point B: I have approaced another bank that is following the procedure that you have suggested.

        Thank you in advance.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          1. My key concern right now is title of property instead of Home Loan. For home loan some banks may take deviation and approve the loan as entire risk related to title of property rests with borrower.

          As i mentioned in my previous comment, to establish ownership over property you should have all link documents. If agreement between B and C is not registered then it may have serious legal implications. It does not prove your 100% ownership over the property and title of property is open for litigation in future. You might find difficult to sell this property in future. If you are getting this property at good discount and you are willing to take this risk then you may go ahead.

          2. I beg to disagree with your lawyer’s opinion on Succession Certificate. Under Hindu Succession Act, if a person dies Intestate i.e. without leaving any WILL then it is mandatory for legal heirs of deceased person to obtain Succession Certificate from Civil Court. Succession Certificate establishes the authenticity of legal & give them legal right to transfer assets. There are Class 1 Heirs and Class 2 Heirs. As a buyer how will you know who all were legal heirs of person C as per law.

          3. I don’t agree with justification

          4. Sub-Registrar will only execute registration of document from previous owner to new owner. I am not sure in whose name currently the property is registered but it seems it is Person B therefore Person D has to get it transferred in his name before he can sell off the property.

          In my opinion, to clear all the confusion and doubt you get EC (Encumbrance Certificate) of the property for last 30 years. There are 2 EC’s i.e. 13 years and 30 years. While applying clearly mention you need EC for 30 years. EC will clearly show the flow of title & who is current owner of the property in Govt records. Based on EC, you can decide whether to go ahead or not. All the Best

          • Sw

            Dear Sir,
            Thank you so much for your clear and simple advice. I will rethink my decision before buying this property.

  • Satyendra Thakur

    Thanks, Very informative article.

  • স্মৃতিলেখা চক্রবর্ত্তী

    Hi,
    I’m planning to buy a flat in Mumbai; but the present owner already has a loan on it. How do I go about it?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Just to check, are you planning to take Home Loan or pay complete amount from your own savings.

      • স্মৃতিলেখা চক্রবর্ত্তী

        I’ll pay by cheque. No loans.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          You may ask the owner to provide outstanding loan statement from his Home Loan provider and also list of original documents with bank. You will pay total amount through 2 cheques, first against the Home Loan account of borrower to close Home Loan and balance payment in the name of seller. Don’t forget to take the full and final payment receipts from the bank of seller.

  • Kanishka

    Hi,
    I would like to know the list of documents (original/xerox) in a property having following details:
    “This is a property (apartment flat) allotted by builder to Husband & Wife (seller). The property is not yet registered by the allottees so far, but they have paid the full amount to the builder. The seller, the builder and myself will have to go under a tri-partite agreement with seller as assigner (conforming party), builder as first party and me as second party. I will have to pay the registration amount to builder in advance to facilitate registration under my name. At the same time, seller has shown difficulty in bringing wife for tri-partite agreement. Instead, he has proposed to use Power of Attorney to execute agreement. The payment to seller will be given by my bank as i am funding this purchase through loan”.
    Please advise what precautions and documents shall i keep at my end. An early response would help me immensely. regards. Kanishka

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Check following documents
      1. Original Allotment Letter of Seller
      2. Payment Receipts issued by Builder to Seller
      3. Agreement to Sale and Agreement to Build / Construction Agreement between Seller and Builder.

      The tri-party agreement you are referring is called Transfer agreement. Please ensure, all the rights assigned to seller in agreements mentioned in point 3 are passed to you through Transfer agreement

      I will not suggest any dealing through Power of Attorney. You should insist physical presence of wife (a co-owner) at the time of executing Transfer Agreement. Also demand complete set of project related documents from seller. He should provide the same or get it arranged from the builder. You can also demand list of original documents with seller’s bank from which he has availed Home Loan. Also clarify whether these documents will be directly transferred to your Home Loan bank or take authorization letter from seller to collect these documents ans submit to your bank.

      Besides this, you have not mentioned who will bear the transfer fees. Normally builders charge Rs 200 psf as transfer fees for such cases. You should clarify who will bear this fees.

  • Roopak Mhalas

    Dear Sir,
    I will be purchasing a new construction flat very soon. For the home loan, is the notorised agreement copy suffcient for processing the documents, for the address proof ? My permanent address is in Nasik, however I work in Mumbai and temporary address (notorised agreement) is also in Mumbai. Bank insist on the address in Mumbai, since I work in Mumbai.
    I do not have any phone bill, bank statement or other such document at the Mumbai address.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Your Rent agreement copy is sufficient for local address proof.

  • Lodhiya Prashant

    Dear Sir,
    Recently I have Purchase flat from builder and now I want to take home loan, this is my first property but I have confusion about Which was better from LIC ,Axis, HDFC or ICICI ??? LIC was given 2 years fixed 10.10 % so I have to know that what’s the market trend in coming years Interst rate will go high or low ??? please give me advice so I can plan my loan .

    • http://www.nitinbhatia.in/ Nitin Bhatia

      My vote for ICICI Bank or Axis Bank. Going forward interest rates will drop to boost the growth. It may take 2-3 quarters to come down but one thing is for sure that interest rate will not increase from current levels.

      • Lodhiya Prashant

        Can I go for HDFC ??? as comapre to Axis ???

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Choice is yours but my preference will be Axis Bank.

          • Lodhiya Prashant

            But sir please let me know that what was the benefit for going with Axis as compare to HDFC ??? Sorry but I am confused because It’s my first home loan so please guide me .

            • http://www.nitinbhatia.in/ Nitin Bhatia

              Please check my posts on Home Loan

              • Lodhiya Prashant

                Dear Sir,
                I have read your post , you have worst experience with HDFC bank but there is not anything for axis bank .

                • http://www.nitinbhatia.in/ Nitin Bhatia

                  You may search on net.

  • kk

    Dear Sir,

    It is possible if i let someone to stay in my flat for 4
    months without any rental or leave licence agreement. This is resale flat and
    person is staying without any rental agreement is seller of flat.

    Flat is purchase on home loan and one day bank person come
    for verification and they told me that i can’t let someone to stay in flat
    without any agreement or document.

    So my question is can i let him stay as without any rental
    or leave licence agreement to seller.

    If yes or no then which documentation should be done.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I will not suggest. You should sign Leave and License agreement & get it registered. Ideally the flat should be vacant at the time of sale as it might cause problem in future to obtain possession of flat.

  • http://www.nitinbhatia.in/ Nitin Bhatia

    I don’t think so. To be on safer side, association can declare these documents as lost.

  • Saurav

    Hi Nitin,

    Great work you have been doing by sharing information.

    Would like to know if sale agreement (with down payment) is needed before processing of SBI Loan and with other private banks ? Or booking(paying the token amount )
    is enough ?

    Best Regards,
    Saurav

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Sale Agreement is must to avail Home Loan.

  • Hafiz

    Hai Mr. Nitin,
    I am Hafiz, i am looking for a flat to buy in Bangalore and i had finalized too. which is BBMP approved, A Khata Property, ready to move. Builder is saying he has no occupancy certificate. and he said it cannot be given to small apartments such like(40Flats). Is it true? shall i go ahead to purchase with No OCCUPANCY CERTIFICATE or which is necessary? Please suggest me on it.
    My second question is Builder is collecting service Tax and Vat from the Basic cost of Property(Basic cost of Flat + car parking) is it the right way? if it is right what is the % applicable on it.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      In my opinion, you should not buy without OC. Hope you read about demolition order of campa cola society by Honorable Supreme Court of India. Only reason was that OC was not issued some 30 years back.

      Without OC, Khata A is not possible but due to deep routed corruption you might get Khata A but Khata A will not suffice for OC.

      VAT and ST is applicable only for under construction property. If the property is ready to move in then you need to pay these components. It seems this property is ready to move in therefore ST and VAT will not be applicable.

      • Hafizulla Baig

        Hai Mr. Nitin, Thank you so much for your reply. Still i need an few other clarification on it.

        Had look for an another apartment, they also dont have OC. Most of the builders & Developers dont have an occupancy certificate In Bangalore. As far as i understand from OC is, the builder and developer not constructing the apartment as per approval plan from BBMP.That is the reason they are not getting occupancy certificate for their building. Eg: If the approval building plan is sanctioned for 30flats, Builder constructing 35flats. Is it so??? In future any thing goes wrong government will demolish only those excess(5 flats) or complete Building?

        LIC Home loan is funding for the apartment which i had finalized. It has encumbrance certificate, up to date tax paid receipt, A khata…etc., Please suggest me what should i have to do

        • http://www.nitinbhatia.in/ Nitin Bhatia

          If 35 flats are constructed and 30 are legal then builder can provide partial occupancy certificate for 30 flats and you may demand same. Secondly, we cannot assume on deviation part. If the deviation is on FAR then entire building will be demolished.

          As i have not checked all the documents therefore i request you take the opinion of competent lawyer in this regard.

    • Hafizulla Baig

      Hai Mr. Nitin, Thank you so much for your reply. Still i need an few other clarification on it.
      Had look for an another apartment, they also dont have OC. Most of the builders & Developers dont have an occupancy certificate In Bangalore. As far as i understand from OC is, the builder and developer not constructing the apartment as per approval plan from BBMP.That is the reason they are not getting occupancy certificate for their building. Eg: If the approval building plan is sanctioned for 30flats, Builder constructing 35flats. Is it so??? In future any thing goes wrong government will demolish only those excess(5 flats) or complete Building?
      LIC Home loan is funding for the apartment which i had finalized. It has encumbrance certificate, up to date tax paid receipt, A khata…etc., Please suggest me what should i have to do?

  • Sudeep

    Dear Mr. Bhatia,

    Thanks so much for sharing such valuable information with us.

    I have a question regarding buying a Landlord share. I am looking for a flat Bangalore and I have finalized too. This project is BBMP approved and approved by all major banks. Its a under construction Project and the procession is in June’15. The problem is that the Flat that I have finalized is from the Landlord share. I applied for Loan from HDFC. Now they are telling me that since this a Landlord share, the property has to be Pre-Registered in my name and only then they can approve the Loan. Is this correct? I do not find their argument logical as how can the Flat be registered in my name until it is actually constructed. Kindly let me know if the HDFC guys are mis-leading me and should I look for some other bank.

    Best regards,
    Sudeep

    • http://www.nitinbhatia.in/ Nitin Bhatia

      It is solely at the Risk Assessment of Home Loan Provider. The flats under land owner share are legally more risky. Most common reason is when land owner observe that value of their land is unlocked & is much more than what they agreed with builder, they claim that they signed agreement under coercion and force. In few cases, legal heirs claim stake on land owner share therefore In my opinion also, it is advisable to Pre-Register the property to safeguard your interests.

  • Jyoti

    Hi Mr. Bhatia,

    As discussed earlier also, we are not able to finalize the property. It is because banks are not providing us home loan in that area.

    Reasons are :

    G+2 Floors
    The builder has made only one building which has at least 10-15 flats.
    Some banks are asking for CLU.
    They have only approved map (site plan), no other approval have been taken (GMADA)

    Now, what they are providing us is :

    Registry in our name.
    Electricity & water connection in our name.
    Loan from India Bulls.

    We really liked the property but not going ahead because of the above reasons.

    Please suggest.

  • Jyoti

    Dear Mr. Bhatia,

    As discussed earlier,we are not able to finalize the property in Chandigarh.It is because banks are not providing us home loans.

    The reasons are :

    G+2 Floors
    Some banks are asking for CLU
    Builder have not taken approval from GMADA (Greater Mohali Area Development Authority), only layout plan or map is approved which is not sure
    Stake is divided into different parts (which might not be equal)

    What they are providing is :

    Registry in our name (each floor,separate registry)
    Electricity & water connection in our name
    Home loan from India bulls
    MC Approved

    We really liked the property but due to above reasons we are not able to finalize it.

    Please suggest.

    Also, share few good banks name for home loans.

    Which other banks can provide home loans for g+ 2 floors?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Dear Jyoti,

      I highlighted 8 points which should be taken care of in this transaction. You may check the comment through following link

      http://www.nitinbhatia.in/cheapest-home-loan-rates/#comment-1461346854

      If banks are not providing loan then its clear that something is missing. As i mentioned in previous comment, approval from local development authority is must else it is doubtful that transfer of ownership is passed. If CLU is not in place, it clearly implies that land cannot be used for this kind of construction thus entire construction can be declared illegal in future.

      All banks can provide Home Loan for G+2 floors provided all documents, approvals and permissions are in place. In the absence of relevant documents, none of the bank will provide Home Loan.

      In my personal opinion, you should not go ahead.

      • Jyoti

        Sir,CLU is required if the land is in acres.But that is a small piece of land in kanals only.That’s why they have not taken CLU Approval as per builder.

        Banks are saying that why we are not giving bank loans as you will get the flats in ratio or percentage wise (e.g, 30% is for ground floor,40% for first floor and so on).If any mis happening happens,then how bank will acquire the property.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          CLU has nothing to do with size of land. Builder is misleading you. Even if a small piece of land approved by Local Development Authority for agricultural purpose. You need CLU to use this piece of land for residential purpose. Else it will remain agricultural in govt records and any residential use is illegal.

          He is right, CLU is for land not for independent floors. If the CLU is available for land on which society is formed then i don’t foresee any issue.

          Bank is right, As i understand builder has bifurcated the land in proportion as mentioned by you as he does not have CLU. 1st the builder need to obtain CLU and then he can bifurcate the survey no by taking approval from local development body. In short, your floor will have separate survey no. In existing scenario, you will ownership of land in proportion of your share but you will not have ownership of flat. Bank is landing for flat not for loan therefore Home Loan is not feasible in this scenario. Secondly once the building is constructed, it is difficult to identify land demarcation which may arise dispute in future.

          • Jyoti

            No other bank is providing home loans for g+2 floors. Shall we go with hdfc ?

            • http://www.nitinbhatia.in/ Nitin Bhatia

              If no other choice then you may go ahead though final call is yours.

              The list of documents are mentioned in this post. You may check the same.

  • Roger Dave

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  • Reema

    if conveyance deed of the property is there then is development deed required to take home loan?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      As i understand correctly, by development deed you are referring to JDA (Joint Development Agreement) between Land Owner and the Builder or you are referring to construction agreement to be signed between buyer and the builder.

      In both the scenarios, JDA or Construction agreement is required even though the conveyance deed is in place.

  • satheesh

    i taken a house loan from my parents and pay interest to them.what are the documents i have to produce in it dept for availing interest deduction us 24b

    • http://www.nitinbhatia.in/ Nitin Bhatia

      1. You need loan agreement signed between you and your parents. Loan agreement should have name of the lender i.e. your parents, your name, loan amount, repayment tenure and rate of interest.
      2. You need certificate from your parents certifying the amount of interest payable/paid
      3. The loan should be transferred through cheque only
      4. The repayment should be through cheque only
      5. Statement from lender i.e. your parents stating total amount paid by you during FY with break up of principal amount and interest.

  • Rahul Kashyap

    Hello sir….we are three brothers….the property papers which we have mentions that 50% of the property belongs to my mother who is no more…..and rest 50% belongs to my brothers, i.e. 25% (younger brother which again is no longer alive) and 25% ( the other one which is alive)….and i do not have any share mention in the property…..now we live in a joint family each having his own floor…i live in 2nd floor……now sir i want to ask you i want to sell my own floor and want to relocate to some other place…now what all documents do i need to prepare as in the property papers i do not have my share ( the only share i believe i have is my mothers share who is no more but her share gets divided between all her three sons, i.e. 13%….but my brother has no issue with me in selling the floor where i live….. and another thing is that my mother as well as one of my brother is no more with us…so how can i prepare the documents…sir i will be very grateful to you if you answer my query…..

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Your share in property is only 16.66% (As per Hindu Succession Act) provided there are only 3 legal heirs of your mother i.e. 3 sons. You and your brother does not have any rights on 25% share of your deceased brother. The legal heirs of your deceased brother has 41.66% share in property and 2nd brother also has 41.66% share.

      You need to distribute the property as per hindu succession act and then only it can be sold. Currently the ownership pattern is in % and not clearly demarcated (floor wise) therefore your should hire a good lawyer who can help in distribution of property with clear demarcation so that it can be sold.

      • Rahul Kashyap

        Thank you so much sir for your prompt reply…..God Bless U….if i have ant further query on this sir i will ask u …..again thanks for ur help…..

  • Prashant

    Hello Sir
    I have applied loan in axis bank for flat they are not ready to offer the loan because bulider documents are not complete – case: Builder has taken a property for development purpose from the owner – original owner purchase this property in 1994 & done gift deed to brother. Builder has development agreement with brother. Builder has original gift deed but dont have the original sale deed (copy is available) happeed in 1994 & there is no transaction in between period
    how many transaction bank should ask to builder – builder is well reputed builder
    Is the loan rejection logical? Is there any risk in the property?

    • http://www.nitinbhatia.in/ Nitin Bhatia

      I concur with decision of Axis bank. The original sale deed copy is required to prove ownership. Authenticity of Gift Deed is questionable. Bank is right to ask record of any no of years if the transactions are dubious in nature. The reason for missing sale deed is not known.

  • moncy skariah

    Hello Sir,

    Thanks so much for sharing such valuable information with us.

    I have a question regarding land loan transfering.
    sir one year before i brought land from owner, the total value of land 10 lakhs.the problem is property already in bank.this owner take loan.he explane me everythings. so first i pay 7 lakhs.after that every months i am paying him loan in bank. but now he tell me within 2 months need clear,
    sir now balance i need to pay 1.75 lakhs.sir this balance amount and the loan how to transfer under my name? now him balance loan payment i am paying.sir please tell me the solution as soon as possible.located place of land in kerala.currently i am working in abroad,my email-monsgsfmo@gmail.com
    best regards,
    moncy

    • http://www.nitinbhatia.in/ Nitin Bhatia

      You should have transferred the property in your name before making any payment. Just to check, have you signed any agreement with seller in this regard.

      • moncy skariah

        Sir still not transferred the property because this property inthe bank loan (deed)under seller name, only sale agreement signed,sir now how to transfer under my name,if this property with loan transfer under my name its easy for me.also i will pay the out standing loan.still this deed documents in bank.please advice me what is the next step.also need any other cpontract between me and seller?
        best regards ,
        moncy.

        • http://www.nitinbhatia.in/ Nitin Bhatia

          Even if the property is mortgaged i.e. seller has home loan, it can be sold. At the time of sale i.e. property registration buyer can clear the Home Loan of seller either from own fund or through his Home Loan.

  • http://www.nitinbhatia.in/ Nitin Bhatia

    I have already answered this query. Please do not post same query multiple times. Thanks

  • Vishal

    Hello Bhatia Sir,
    I want to sale my flat. The purchaser asked for Property tax bill copy & NOC from builder. But after purchase of said property, till date we dont have received any property tax bill from local authority i.e. municipal corporation. In such situation what will be the solution for me to sale the flat.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Property tax is payable only from the FY in which the possession is received. Normally, 1st time it is paid by builder and afterwards, the buyer pay property tax every year.

  • http://www.nitinbhatia.in/ Nitin Bhatia

    As per ruling of Honorable Supreme Court of India, Builder cannot sell parking space therefore builder is not mentioning it in agreement. I understand your concern. I suggest that you take parking allotment letter from builder on builders official letter head to safeguard your interests.

  • Dinesh

    Hello Nitinji,
    I had purchased a builder floor from the woner of the property in new delhi and paid the Bayana Amount to the owner. The Sale agreement was signed on stamp paper. Then i applied for the home loan, the loan got rejected. Reason cited by the Bank was MCD unauthorised construction.
    Upon this i searched the internet and found the name of this property in the Unauthorized construction list. I apporached the owner of this property and asked him to return the money, as this was against the clauses agreed upon at the time of Bayana (Property free from litigation issues i.e. clean property). He immediately refused to return the money and told us that he has already filed a case with the MCD for regularisation and was suppose to pay the penalty. Few weeks passed now i had to vacate my old house as i had sold it in order to purchase this builder floor. On the day when i had vacated my old house the owner asked us to pay 50% amount and allowed us to shift in this floor of his, as by that time he could not get clearance from MCD, hence Registry could not be done. Days kept passing, the due date of the Bayana agreement had passed and still he could not get the clearance from MCD which was 18th June. In the meantime he even started demanding huge amount of money, though he himself had agreed that the remaining amount would be paid at the time of registry. This was accompanied with lots of threats and even harassment. Finally after waiting for so long we served him a notice from an advocate. On the same day he even got the clearance letter from MCD dated 1st July 2014, which had already crossed the due date i.e. 18th June 2014. Now we again appled for loan in another nationalized bank, which again got rejected and now the reason cited by the bank was documents chain incomplete (Agreement to sell, possession letter, demand letter, allotment letter) were missing. We told the owner to provide these documents he again refused and told us that these were not required and he does not possess these documents in orginal with him. We are being harassed in bits and pieces. Now we are not interested in buying this property as there have been spats regulary with him. We just demand our money back as he had committed forgery i.e. 420, by selling illegal property (not cleared by MCD). He is refusing to pay back the money and challenges the courts of this country by saying that there is no court in this country which can get us our money back from him. He even threatens us saying that he will file a return case aginst us claiming breach of contract (Sale agreement), though for this he himself is a defaulter as he could not get his property cleared by due date of agreement.
    Sir, please help me as i cannot handle this tense situtation. And there us a huge amount involved in this transaction in crs.

    • http://www.nitinbhatia.in/ Nitin Bhatia

      Its a legal case, i suggest you to hire a local competent lawyer who can help you in filing FIR and civil suit.

      • Dinesh

        Hello Nitinji,

        Thanks for your prompt response.

        I would like to know the following things:

        IF WE FILE A CASE THEN

        1. How much time will it take for the court to deliver justice.

        2. Will i be staying in the same house, or i have to move to another one

        3. How much amount will be spent in this whole process.
        4. What kind of a case is this legal or criminal.
        Thanks Nitinji.

  • Amit Sharma

    Dear Sir,

    Thank you for such an informative article, also good of you to offer your advice to the comments.

    I am giving below the details of the property:
    Property located in New Delhi
    This property is on leasehold basis

    The latest status is as under:
    Mother: 1/2 share.
    Two younger brothers each having 1/4th share
    As far as I know, after the death of my mother, her 50% share will be divided equally to three brothers, myself and two younger brothers i.e. 16.66%. each, as there is no will by my mother.

    After adding these shares the position is as under:

    My share 16.66%
    Younger brother 41.66%
    Youngest brother 41.66%

    Our house was single storey, but we got constructed the said house having Basement to 3rd
    floor

    Now I am facing the following problems and would like to have your valueable opinion as to what steps should I take to come out of this mess.

    I need the following clarifications from you:

    a. What action should I take to get the death certificates of my mother, younger
    brother and his wife, who died in 1989, 2008 and 2007 as we have not registered
    their deaths in the MCD. The approximate amount I have to incur on penalty and other expenses

    b. Since now we have floors Basement, GF, 1st, 2nd, 3rd floor. I am living on 2nd floor and I am interested to get it registered. How can we divide the property. What would be the approximate
    expenses for getting succession certificate, mutation, stamp duty and other
    expenses like advocate fee for preparing documents and appearance in court.

    With kind regards,

  • Mitesh mandliya

    Hello sir,

    I saw a flat in thane at miraroad. Its a new construction and possession is ready.. And for that I have to apply for loan… When I asked builder for documents then he said that I have development agreement but its not registered and also power of attorney is not registered…
    So in this situation what u suggest whether to buy this property or not…