Documents involved in buying a home

Buying our own home is ​more than just a dream for most of us. We work our entire life with the goal of becoming a homeowner and end up spending a large part of our earnings as well as savings on it. Purchasing a home is not only an emotional journey but it also needs you to be practical as it involves a lot of documentation which could be tricky for a first-time homebuyer.

As we begin the research on the apartments for sale in any city to find our dream home, we should also be aware of the legalities involved in the buying process. Below is a list of documents that the buyer should be aware of to have a smooth home buying process:

1. Sale Deed: The Sale deed is executed before the Sale Agreement. This is one of the most important document that act as evidence of the transfer of ownership of the property from the builder/seller to the buyer. If an individual wants to sell their home over time, this document is essential.

2. Khata Certificate/ Extract: This document is proof that the property has an entry in the municipal records along with the assurance that the construction of the property has followed an approved plan. It is also needed at the bank while applying for a home loan.

3. Sale Agreement: The Sale agreement has all details about the property like the Terms & Conditions as agreed between the buyer and the seller, Possession date, Payment Plan, etc. and holds the seller responsible for the construction and delivery of the property. To ensure the legality a Sale Agreement is documented on a stamp paper.

4. No Objection Certificate (NOC): When a developer is planning the construction of a property, they are expected to get a NOC from multiple authorities that differ in each state. Buyers should keep a copy of these for their reference.

5. Allotment Letter: This document comes into the picture in case the buyer wants to purchase a property in a project which is Under-Construction. It is issued by the developer with details of the unit chosen along with the amount paid by the buyer. It is only issued to the first owner of the property and does not apply in case of resale.

6. Possession Letter: A possession letter is issued by the seller to the buyer stating the date on which the latter would be granted possession of the property. This document, however, does not prove one’s ownership of the property.

7. Completion Certificate (CC): This certificate is issued by the municipal authorities denoting that the building has been inspected and the construction follows all the laws of the authority.

8. Occupancy Certificate (OC): This is again issued by the local authorities to the developer approving the building to be ready to be occupied.

9. Encumbrance Certificate (EC): This is one of the most important certificates that a buyer should be aware of. This proves that the property does not have any pending legal dues or mortgages. A copy of the Sale deed needs to be submitted by the buyer to obtain an EC.

All of the above will help the buyer be well aware of the status of the project keeping them safe from illegal transactions. ​If you are looking at buying your home, it is advised to buy from a branded developer, this will ensure clear titles and documentation.

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