Important legal documents in the home buying process

Whether you are buying a home for yourself or from an investment perspective like flats in panchkula, it is important to understand that the home buying journey requires a lot of preparation to avoid risks and pitfalls. While home buying is a complex process, a through paper check and legal documents are of utmost importance. Let’s take a look at the important legal documents that you must know at the time of purchasing a property:

Title Deed

The proof of ownership of the land on which the property has been constructed is the first step in checking the legal documents. The seller of the property should be the actual owner with the right to develop and sell the property.

No Objection certificate

No objection certificate is another important document that needs to be obtained before making the final transaction. It is important for the developer to obtain the NOCs from various departments like water, electricity, etc. and produce at the time of the sale.

Commencement certificate

Like NOC, commencement certificate is an essential document for any property construction to commence.  This is the legal document that builder needs to procure before the beginning of the construction of property over the approved land.

Occupancy Certificate

An inspection is carried by the authorities to ensure that construction meets all the norms. This certificate is important and procured after the completion of the construction.

Completion certificate

Once the construction has been completed, the builder needs to procure the completion certificate issued by the municipal authority. The certificate is proof the constructed property has complied t the rules and developed as per the approved plan. 

Encumbrance certificate

The encumbrance certificate denotes that the property is free from any encumbrance or loan. This certificate has all the records related to the transactions over the property over the period of time. This certificate is also required by banks at the time of giving home loans.

Sale Agreement

The agreement to sell consists of a detailed description of the property along with the terms and conditions between the seller and buyer. It includes possession date, arbitration clause, and penalty on the default time.

Before making the final deal, it is important to check and ensure the above legal documents related to the property into consideration. When we plan to shortlist a property we generally focus on the location, connectivity, infrastructure, amenities, and facilities. However, these are not the only factors that would safeguard the interest of the buyer and requires the above stated legal documents to avoid any legal issues.