Documents to Check Before Buying a Flat

Documents to Verify When Buying a Flat from a Builder

Here’s a detailed guide on the critical documents to check before buying a flat in Mumbai.

1. Sale Deed
The sale deed is the most important in the list of documents to check before buying a flat. It legally confirms the transfer of ownership from the builder to the buyer. Before signing, ensure the deed is registered and free from ambiguities. Examine all terms and conditions meticulously, and consult a legal expert if necessary.

2. Title Deed
A title deed is a legal document that establishes a person's ownership of a property, particularly in real estate transactions. It serves as proof of ownership and outlines the rights associated with the property, including its description and location. While a sale deed facilitates the transfer process, the title deed confirms the ownership rights once registered.

3. Completion Certificate (CC) and Occupancy Certificate (OC)
The completion certificate indicates that the building follows approved plans and regulations. The occupancy certificate, issued post-construction, ensures the flat is fit for habitation. Both documents are mandatory for securing utility connections such as water, electricity, and gas.

4. No Objection Certificates (NOCs)
Government authorities, such as those responsible for safety, electricity, gas, and water services, provide a No Objection Certificate to builders or sellers. This certificate is a vital document that assures potential buyers that the property has received all necessary approvals and is in compliance with regulations. By securing an NOC, buyers can be confident that there are no outstanding claims for acquisition or demolition against the property, ensuring a smoother and more secure transaction process.

5. Building Plan Approval
Cross-check the approved building plan to confirm that the flat has been constructed following municipal regulations. Any deviations from the approved blueprint could result in penalties or demolition. Ask for a copy of the sanctioned plan for reference.

6. Encumbrance Certificate
This certificate verifies that the property is free from monetary or legal liabilities. Obtain the document from the sub-registrar’s office to ensure no claims or mortgages are attached to the flat.

7. Utility Bill Verification
Verify that utility bills, such as electricity, water, and gas, are registered in the builder’s name and are free from outstanding dues. This step ensures you won't inherit any unpaid liabilities after the purchase.

8. General Power of Attorney (GPA)
When a property is sold by an attorney or legal representative, it is essential to validate the power of attorney that permits the sale. This document serves as proof that the seller is authorized to act on behalf of the property owner. By examining the power of attorney, buyers can ensure that the transaction is legitimate and that the seller has the necessary legal authority to execute the sale deed. This step is vital for safeguarding the buyer’s interests and ensuring a smooth transfer of ownership.

Things to Check for Under-Construction Properties

Buying an under-construction property requires thorough research to ensure your investment is secure and rewarding. The following factors are crucial for making informed decisions.

1. Verify RERA Registration
Begin by confirming the developer’s RERA registration on the official state RERA website. This ensures the project meets legal requirements, follows ethical practices, and adheres to promised timelines. Review approvals, land title status, and construction updates for a transparent understanding.

2. Check Approvals and Clearances
Ensure the property has all necessary approvals, such as land title, commencement certificate, and building plan approval. These documents verify the land’s legal status and adherence to sanctioned plans. Confirm approvals from local authorities like municipal corporations and water supply boards to avoid future complications.

3. Assess Construction Progress and Quality
Regular site visits are essential to inspect the construction progress and material quality. Evaluate the workmanship in walls, flooring, and fittings to ensure consistent quality. This not only secures your investment but also ensures long-term satisfaction.

4. Understand Payment Plans
Opt for payment plans that align with your financial capacity. Construction-linked plans are popular, as payments are tied to project milestones, reducing financial risks. A clear understanding of payment terms ensures better cash flow management.

5. Check Bank Loan Approvals
Projects with bank loan approvals from reputable institutions indicate compliance with legal and construction norms. Builders with multiple bank tie-ups are generally more trustworthy, offering additional financial security.

6. Evaluate Costs and Hidden Charges
Beyond the base price, account for expenses like GST, stamp duty, registration fees, and maintenance deposits. A detailed cost breakdown helps avoid surprises during the purchase process. Compare rates, floor rise charges, and other fees to understand the total cost.

7. Consider Resale Value
Even if buying for self-use, consider the property’s potential resale value. Factors like location and quality of construction influence its future marketability. A well-built property in a prime location ensures better long-term financial returns.

Additional Factors to Evaluate

Beyond legal real estate documents, a few additional checks can further secure your investment. These include evaluating land use, zoning compliance, and environmental clearances.

1. Land Use and Zoning Certificates
Ensure the land on which the property is being built is meant for residential use. Verify the conversion certificate if the land has been converted for residential purposes. This step safeguards against future disputes or legal issues.

2. Environmental Clearances
Under-construction projects must comply with environmental guidelines to minimize ecological damage. Verify that the builder has obtained the necessary clearances from the pollution control board and other environmental authorities.

3. Utility and Infrastructure Readiness
Check if the project has provisions for basic utilities like water, electricity, and sewage. For under-construction properties, ensure that these amenities will be operational by the possession date.

Final Checklist Before Making a Decision

1. Engage a Legal Expert: Property documents can be complex and are best reviewed by a qualified legal professional.
2. Inspect the Flat: For ready properties, inspect the flat personally to ensure it matches the specifications mentioned in the agreement.
3. Verify Past Projects: To assess construction quality, visit the builder’s completed projects for under-construction properties.
4. Keep Copies of All Documents: Maintain digital and physical copies of all agreements, certificates, and receipts for future reference.

Investing in a flat, whether it’s ready to move in or still under construction, requires an understanding of the necessary legal documents to verify and a thorough approach to due diligence. By carefully checking property records and ensuring all regulatory approvals are in place, you can have a smoother home-buying experience.

Disclaimer- The views expressed above are for informational purposes only based on industry reports and related news stories. Piramal Realty does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.