Checklist of Property documents is very crucial step of property purchase process. Property transaction in India is document intensive exercise because of complex legal, statutory and regulatory framework. Based on queries received from my clients, i can conclude that approx 80% buyers don’t get complete property documents at the time of purchase. These buyers struggle at the time of sale of property. Another problem linked to property documents is that buyer or a seller is not aware why specific property document is required, whether it is required in original or not etc. To help readers of my blog, i have created a comprehensive checklist of property documents. I will keep updating this property documents list as and when required. Also i would like to add that some states in India require additional property documents which vary from case to case basis.
1. Sale Deed/Title deed /Mother deed/Conveyance Deed
Description of Property Document: A sale deed acts as the main legal property document for evidencing sale and transfer of ownership of property in favor of the buyer, from the seller. Further, it also acts as the main property document for further sale by the buyer as it establishes his proof of ownership on the property.
Normally sale deed is executed after execution of sale agreement. Sale deed confirm that terms and conditions detailed in the sale agreement as agreed upon between the buyer and the seller are complied. It is mandatory to register the Sale Deed in Sub Registrar office in whose jurisdiction property is located. It is mandatory to register sale deed within 4 months from the date of execution else you need to pay penalty or it stands invalid.
Why it is required: To establish the ownership of seller on title of property
Mandatory: Yes. All previous Sale Deeds are required in original
Required in Original: Yes
Required For: Property Purchase + Home Loan
2. RTC Extracts
Description of Property Document: R.T.C is issued by the Village Accountant. It contains details of the extent of land in a survey number or a sub-survey number, the extent of kharab land therein, the names of the present and previous owners, their respective holdings and names of the tenants. It also include details like the kind of soil/crop, any mortgages, charges made on the properties contained therein, the status of land (whether Inam land or not), the conversion order number, date in case any property converted therein from agricultural to non-agricultural use, the references to mutation and inheritance certificates where there is any change in ownership etc.
Why it is required: To establish the Title of Land, if the property is located on converted land e.g. converted from agricultural to non-agricultural use
Mandatory: No
Required in Original: No
Required For: Property Purchase
3. Katha Certificate and Extracts
Description of Property Document: Khata means an account and Khata is an account of a person who has property in the city. There are two types of Khata: Khata Certificate and Khata Extract. In different states it is known by different names. It is basically an entry in record of local municipal committee and indirectly confirms that apartment is constructed as per approved plan.
Khata certificate is required for two reasons: For registration of a new property and for transfer of any property. Khata can be obtained from the Assistant Revenue officer (of the respective area). This certificate is must have for any property owner.
Khata Certificate is obtained for any new registration after paying the tax. Khata certificate is issued stating that a particular property No ‘N” is in the name of person X. This certificate is required to apply for water connection, electricity connection, trade license and building license. The Khata certificate is given only to the owner of the property or to his family members. No one else can take it on his behalf.
Khata Extract is seeking details from the assessment register. The extract is required to get trade license, or to buy a particular property. It is an extract from the assessment register about any particular property. It has the details of the property in a particular format with the name, size of the property, use of the property (commercial purpose, residential), annual value, when assessed last. An extract is the only way to get these details of any property.
Why it is required: For transfer of property
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
4. Mutation Register Extracts
Description of Property Document: Mutation Extract issued by the Village Accountant or Tahsildar contains the extract from the mutation register or inheritance certificate with details of previous owner, the present owner, the mode of acquisition of the property, the total extent of the property and the order stating that the Khatha of the property may be transferred to the name of the present owner.
Why it is required: To establish the Title of Land if the property is located on converted land e.g. converted from agricultural to non-agricultural use
Mandatory: No
Required in Original: No
Required For: Property Purchase
5. Joint Development Agreement
Description of Property Document: An individual landowner and a builder may enter into a JDA. The key feature of a JDA is that the landowner will contribute land and the builder will undertake development activity on it. Depending upon the land price, the joint development ratio is decided among the parties. In most of the cases, the builder will agree to allot X no of flats to the landowner and there is no exchange of money between landowner & builder. In consideration of this, the landowner will part with his share of land in favor of the builder or his nominee. He also allow the builder to construct apartment on his land and sell the agreed number of flats.
Why it is required: To establish whether original title of property rests with the Builder or with Landowner
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
6. General Power of Attorney
Description of Property Document: A “power of attorney” is a legal instrument whereby one person gives another person the authority to act on his or her behalf as his legal representative and to make lawful binding legal and financial decisions on his behalf including Sale or Purchase of Property on Buyer or Seller’s behalf.
Why it is required: To establish whether the previous Sale or Purchase was carried out by authorized person on Seller or Buyers behalf
Mandatory: Yes (If any of previous Sale/Purchase were executed through GPA)
Required in Original: Yes
Required For: Property Purchase + Home Loan
7. Building plan sanctioned by the Statutory Authority
Description of Property Document: The building plan approval process relates to the issue of permission for the construction of buildings based on specific set of rules and regulations.
Why it is required: To establish whether the property is authorized or unauthorized
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
8. NOC from Electricity Deptt/Pollution Control Board/Water Works/ Air Port Authority
Description of Property Document: Before starting the construction, builder requires NOC from all key Govt Departments. In some states NOC from at least 19 departments are required ranging from Pollution Control Board to Fire & Safety etc. For example If builder does not get NOC from Electricity Deptt then in all probability, buyer will not get electricity connection thus 100% dependency on generators. It will increase maintenance bill drastically.
Why it is required: To ensure Govt approvals are in place
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
9. Supplementary agreement / Ratification Deed (if any)
Description of Property Document: Supplementary agreement captures any extension, change or modification in certain clauses of Principal Agreement. Many a times changes are required in principal agreement and only way to execute the same is through Supplementary agreement. Just check whether any supplementary agreement is executed against Principal agreement.
Why it is required: To avoid any future shock on modified clauses which you might not be aware of & is not included in property documents.
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
10. Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.
Description of Property Document: While availing Bank Loan to buy a property, Builder/Housing Society issues an Allotment Letter to the buyer which contain details like description of the said property being sold/bought by the two parties. It also mentions the amount of money which buyer has paid to the builder/housing society so that remaining amount can be financed by the bank.
On the basis of this Allotment Letter, banks finance the balance amount.
As such the Allotment Letter also gives all the pertinent details of the Property being bought/sold and also detailed specifications of the Project.
Agreement of Sale is documented on a Stamp Paper whereas Allotment Letter is issued on Letter Head of concerned authority.
Allotment letter is only issued to 1st owner by builder and subsequent owners can demand copy of original allotment letter from previous owner
Why it is required: For Description of Property & Project specification by Builder or Housing Society
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
11. Sale Agreement between Builder and 1st Owner
Description of Property Document: It is very imp property document. The Sale Agreement must contain the liability of the Promoter/Builder to construct the building according to the plans and specifications approved by the local authority. It should also contain tentative possession date, price to be paid by the purchaser and the intervals at which the installments towards the full payment are to be made specifying the stage of construction. It also contain details like the precise nature of the body to be constituted of the persons who would take the flats i.e. association, details regarding the common areas and facilities. It specify the percentage of undivided interest in the common areas and facilities pertaining to the apartment agreed to be sold & a statement of the use for which the apartment is intended.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
12. Construction Agreement between Builder & 1st Owner
Description of Property Document: The construction agreement is another imp property document. It is essentially a works contract. In other words, it’s an agreement in writing for the execution of the work relating to the construction of the apartment and it also involves the transfer or sale of the goods involved in the execution of the contract. The nature of this contract is such that a person undertakes to execute work by incorporating various items, things and goods in such work. When completed, these items along with the executed work are owned by the person for whom the work has been executed.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
13. Copy of possession letter from the builder
Description of Property Document: It ensures that possession of the said building is being delivered to the purchaser on the effective date specified in the letter.
Why it is required: As mentioned in Description
Mandatory: Yes (In case of 1st Purchase i.e. from Builder)
Required in Original: Yes
Required For: Property Purchase + Home Loan
14. Payment receipts paid towards the builder
Description of Property Document: Don’t forget to collect original Payment receipts from builder. In case of resale, you can collect payment receipts issued by builder to 1st owner.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan (In case of 1st Purchase i.e. from Builder)
15. If any loan on the property (Current or past) / Original Property Documents with Bank
Description of Property Document:
a. List of original property documents with sellers Home Loan provider.
b. Closure letter with penalty (if any).
c. If the loan is closed then copy of closure letter / NOC issued by the concerned bank.
Why it is required: To ascertain that property is not mortgaged
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
16. Sale agreement with the Seller
Description of Property Document: Sale agreement is executed between the parties for dealing with the property. Sale Agreement creates a right to obtain a sale deed mentioning the property. Normally it fixes a time for completion, payment of earnest money or part payment of purchase consideration. Generally it’s a property document that precedes a sale deed and in such cases does not require registration. Sale Agreement will not confer any charge or right on the property. However in some states the sale agreement is registered and will act as a sale deed. For Home Loan purpose, it is mandatory to pay stamp duty equal to 0.10% of Sale Agreement value.
Why it is required: To fix terms and conditions for sale
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
17. Latest Tax Paid Receipt till Date of Registration (Property Tax/Municipal Tax etc)
Description of Property Document: It shows property details i.e. area, owners name & other imp details related to property. For income tax purposes in India, property is considered as a source of income and hence, tax is levied on that. Property usually mean real estate including any building, flat, shop etc. as well as the land appurtenant to the building. Under the Income Tax Act, incomes from the properties are regarded as one of the heads of income. The amount of tax is calculated on the value of the property being taxed. Local municipality authority that levies property tax for the maintenance of basic civic services in the city. Unlike UK where the occupier is liable to pay the property tax, it is the liability of the property owner to pay the property tax India to the concerned municipalities.
Why it is required: As mentioned in description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
18. EC up to date for latest 13 years or from the date of registration till date
Description of Property Document: One of the most crucial property document. You can get Encumbrance Certificate from the sub registrar’s office. This office is directly under control of the Inspector of Registration of Properties, operated by the state government. The certificate shows that in a given period of time from when the property was bought/sold has there been any transaction or mortgaging. Buyers/sellers ask for this certificate when a new transfer (sale) is taking place, so that the buyer knows detail of all property transactions till date.
Depending on type of transaction, the certificate is issued in two different forms. Form 15, will have details of transactions during the period of registration in the name of the owner. A person will get a ‘nil encumbrance certificate when no transaction has taken place. this certificate would appear on Form 16.
The encumbrance certificate confirm that the property is still in the name of the person who is selling it.
Why it is required: To establish ownership of seller on the title of the property
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
19. Demand Letter from the vendor before disbursement
Description of Property Document: Demand letter is issued by builder to 1st owner, demanding payment due as per schedule agreed between builder & 1st owner.
Why it is required: As mentioned in description
Mandatory: Yes (For 1st Purchase)
Required in Original: Yes
Required For: Property Purchase + Home Loan
20. Own contribution receipt along with the bank statement
Description of Property Document: It is required by the institution i.e. bank or HFC which is providing loan for the property to ascertain that buyer has pooled & paid his own contribution to the seller.
Why it is required: For availing Home Loan it is mandatory for purchaser to contribute 20% of Purchase Value from his own sources and bank only approve loan upto 80 % of the purchase value
Mandatory: Yes
Required in Original: No
Required For: Home Loan
21. NOC from the Society/Building association.
Description of Property Document: An upto-date no objection certificate from the apartment’s owners association. It should clearly mention that Association does not have any objection on ownership transfer
Why it is required: To avoid any future objection by apartment association
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
22. No-due certificate from the building association.
An upto-date no dues certificate from the apartments owners association is required.
Further a certificate from the Association that no charge of any Bank or financial institution is recorded with them with respect to the apartment.
Yet another certificate from the Apartment Owners Association that they are custodians of all the Original documents and approvals of the entire property is a MUST.
Why it is required: To ensure owner has cleared all the dues & association is custodian of all original documents
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
23. Approved plan of construction/extension & license for construction.
Description of Property Document: Before starting the construction, Builder obtain approval from local development authority for construction.
Why it is required: To ensure building has approval in place for construction
Mandatory: Yes (For 1st purchase from builder)
Required in Original: No
Required For: Property Purchase + Home Loan
24. Detailed cost estimate/valuation report from Chartered Engineer/Architect (if applicable)
Description of Property Document: Before approving loan, Bank carry out property valuation e.g. if you have applied for loan of 80% for property worth 60 Lacs & valuation report of bank estimate property value as 50 Lac then bank will only fund 80% of 50 Lac.
Why it is required: To fix loan eligibility based on property valuation
Mandatory: No (Normally its bank’s internal document)
Required in Original: No
Required For: Home Loan
25. Conversion order/Betterment Charges paid receipt.
Description of Property Document: Generally the land pockets available are agricultural in nature, as the major occupation is agriculture and the Government has taken various measures to secure & preserve it. The general use of all such lands is agriculture and if it has to be used for any other purpose other then agriculture, the property owner must obtain legal permission from the competent authority by following defined procedures.
Conversion is a legal process by which the property owner changes the use of the land from agriculture to non agriculture purpose. It is also called CHANGE OF LAND USE / DC Certificate. The legal sanction/ conversion/ order/grant/permission is necessary to use the land for any other purpose
Why it is required: For converted lands
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan
26. Sanctioned Layout Approval plan
Description of Property Document: The layout plan should be approved by the local development authority. In the absence of this you could face Khata transfer and plan sanction problems. The development authority has a right to demolish the apartment and restore the land to status quo ante if layout approval plan is not in place. The title of the site itself can be fairly safe (if property documents are clear) but the development/construction activity can be unauthorized.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan
27. Auction Sale confirmation letter from Local Development Authority
Description of Property Document: If any site/land is purchased by builder or by independent house owner by ways of Auction by Local development authority then this letter is definitely required
Why it is required: As mentioned in Description
Mandatory: Yes (As applicable)
Required in Original: No
Required For: Property Purchase + Home Loan
28. Release deed (If applicable)
Description of Property Document: Release Deed is executed to Release rights whereby a person renounces a claim upon other person or property. If you are purchasing a property, which might have been inherited by seller or was part of settlement between legal heirs of original owner then definitely you will come across release deed. It is very imp property document.
Why it is required: As mentioned in Description
Mandatory: Yes (As applicable)
Required in Original: Yes
Required For: Property Purchase
29. Completion Certificate
Description of Property Document: This certificate is issued by Municipal Authorities showing whether the building complies with the rules related to permissible building height, distance from road etc. whether it is built according to approved plan and is ready for habitation.
Why it is required: To ensure building is constructed as per approved plan
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan (Mandatory for 1st Purchase)
30. Occupancy Certificate
Description of Property Document: The occupancy certificate is issued after construction is completed. Once the builder applies for the certificate, an inspection is done again to confirm if the construction is completed as per sanctioned plan. This certificate is mandatory for any builder before he allows people to take possession of the property.
Why it is required: To ensure flat is ready for occupancy and construction is completed as per sanctioned plan
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan (Mandatory for 1st Purchase)
31. Loan/Charge/Mortgage by the Builder:
Description of Property Document: If the Builder or the Land Owner has created a charge in favour of any Bank or Financial Institution, a NO OBJECTION LETTER from the institution is required. NO OBJECTION letter should clearly mention the property details, the name of the borrower, the borrower’s account number, the apartment, floor, area, car park etc. and shall be addressed to the Purchaser. The original letter should be in the safe custody of the Purchaser. If in “No Objection letter” if it is mentioned that all the payments by the Purchaser shall be through the financial institution, the same should be complied.
If the Builder states that they have not availed any loan or have not created any charge on the property, the same shall be stated in definite words in the agreement/s to be entered into with the Developer. There should be clause that “all original documents, deeds and approvals are held by the Developer in their safe custody and that the Developer shall continue to hold the same in their safe custody in trust for all the purchasers of apartments, and shall never part with the Originals and that as soon as the Association of Apartment Owners is formed. All the Original documents, Deeds and approvals will be handed over to the Association.” This shall be over and above a declaration in the agreement/s by the Land owner and the Developer that the property is free from all encumbrances.
Why it is required: To ascertain property is not mortgaged by the Builder
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
32. DEED OF DECLARATION
Description of Property Document: A copy of the Deed of Declaration of the Apartment Owners Association and the Bye Laws annexed to the same can obtained from association office. It should confirms to the sale deed/title deed. It is also advisable to check any additional burden/costs in the form of transfer fee payable by the Transferee.
Why it is required: To establish transfer of ownership to original buyer by builder
Mandatory: No
Required in Original: No
Required For: Property Purchase
33. Latest Electricity Bill
Description of Property Document: Always insist on Latest Electricity Bill and Payment receipt from previous owner as Electricity bill is the another solid proof to establish the ownership of current owner.
Why it is required: To establish ownership
Mandatory: No
Required in Original: Yes
Required For: Property Purchase
Hope you found this list of property documents useful. You can share your comments / feedback / query through following comments section. You can also share this post with your friends and family members through following social media icons.
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