In this day and age, purchasing a home is not an easy process. It could be tricky and burdensome, especially if you are a first-time buyer. Meticulous research and the assistance of real estate agents in Mumbai are required at every stage of the sale process. Depending on the type of residential property and its location, the documents essential for home-buying may vary. However, a few documents are mandatory in every home-buying process.
Once you have narrowed down the location of your property, you need to check whether you have the following documents to complete the sale of the residential property.
RERA Registration Certificate
Once you have finalised the location of the home you are buying, the first document you need to check is the RERA registration certificate. You must confirm whether the property and its developer have registered under RERA/Real Estate Regulatory Authority Act. Implemented in 2016 at the state level, RERA seeks to increase transparency and accountability towards buyers in real estate. Under RERA registration, property owners must have licences before making a sale. Thus, the purchasers can avoid fraudulent property deals. The Act applies to all real estate projects in which the property is 500 sq.m or more. RERA gives a unique registration number to the developer, with which you can check their details on the official website.
Sale and Purchase Agreement
The Sale and Purchase Agreement is the next legal document to be included in the home-buying process. It contains the list of sale terms and conditions agreed upon by both parties- the buyer and the seller. This document legally establishes the authenticity of property ownership and therefore, must be drafted by a qualified property advocate. The Sale and Purchase Agreement acts as a road map for financial transactions, such as the final amount to be paid, the amount already paid to the owner, the payment method and the date. Besides price negotiation details, the document will also contain property description, indemnity clauses, tax and maintenance details and contact information of the buyer and seller.
Sale Deed
An essential legal document, the Sale Deed records and mentions the actual ownership transfer of the property. For a Sale Deed to be valid, it must include the details of the involved parties, such as their name, age and address. Moreover, the document must have a detailed description of the residential property. For example, if you are buying a 3 BHK apartment in Thane, the Sale Deed must contain information like the total plot area, construction details, identification number etc. The document has to be registered at the sub-registrar’s office of the city where the business deal takes place. For the execution of the Sale Deed, the buyer has to pay the stamp duty and registration fee.
Non-Objection Certificate
Another equally important document required for the home-buying process is the Non-Objection Certificate/ NOCs. NOCs are usually given to real estate developers when they begin a new housing project. These certificates are granted by infrastructure authorities, like the fire safety department, sewage department and electricity department. Besides developers, home buyers will also need specific NOCs to complete their purchase. With the procurement of NOCs, the real estate developers comply with the terms of the Intimation of Disapproval/IOD- letter granted by Municipal authorities. Although this document is of more value to the real estate developer, the buyer should request copies of all NOCs from the respective developer to avoid legal troubles. For instance, property developers must procure NOCs from Brihanmumbai Municipal Corporation for constructing luxury flats in Mumbai.
Approved Building Plan
While purchasing residential properties, especially those which are still under construction, the buyer must have a copy of the approved building plan. Issued to developers from the respective Municipal authority, the building approval plan has two parts-the layout plan and the building plan. With the approved building plan, you can observe the deviations and raise objections if the property does not match the original construction plan. A common mistake first-time home buyers make is not ensuring whether the builder meets the terms of the building plan and layout plan. Without the approved building plan, governing authorities will deem the construction illegal.
Occupancy Certificate (OC)
The Occupancy Certificate or the Completion Certificate permits home buyers to possess the purchased property physically. A crucial legal document, the Occupancy Certificate, states that the residential property has undergone the required inspection by numerous municipal authorities. It also implies that the property developer has complied with requisite statutory and regulatory real estate laws. Furthermore, an Occupancy Certificate is essential for availing utilities like electricity supply, drainage system, and water supply. For first-time home buyers, Completion Certificate is mandatory, and lack of it can lead to penalties or even eviction of the buyer. If the builder fails to get the Occupancy Certificate, the buyer can approach the Municipal authorities to obtain the document.
Possession Letter
The Possession Letter indicates the buyers’ right to dwell in the purchased property. However, a Possession Letter is not exactly proof of one’s ownership of the property. It is the principal document ensuring that the possession of the property has been transferred legally to the buyer. The letter is made in the builders’ name and must contain a description of the property as well as details of required add-ons. Moreover, the document must also include the date of possession. A possession Letter is created only after receiving the Occupancy Certificate/Completion Certificate. If the buyer does not have a Possession Letter, it signifies that the property is still under legal possession of the builder, and local authorities can ask the buyer to vacate the property.
Allotment Letter
An important document for the buyer, Allotment Letter, is essential if you buy an under-construction residential property. For instance, if you are booking a 2 BHK flat in Dadar, but the property is still under construction, then you will need an Allotment Letter specifying the details of the apartment. Besides the apartment description, the Allotment Letter will also contain payment details, delivery date, construction schedule, builders’ liability and house plans. Issued by the builder or the housing society to the prospective buyer can be used as proof against the builder if he fails to deliver the promised facilities. Additionally, it is required for procuring loans from banks because the letter contains financial details.
According to the best real estate agents in Mumbai, purchasing homes can be a smooth process if you have all the above-mentioned documents. Moreover, a thorough understanding of legal procedures can help you procure these documents without much hassle.
Considering buying a home but perplexed about the requisite legal documents? Reach out to Dreamcity Properties. We guide you through every step of the buying process, including but not limited to legal documents and registration procedures.