Buying a dream home is not as easy as people make it. You need to be financially ready and spend hours researching the property. Before taking the next step, a few things need to be taken care of first, such as choosing the ideal location, organising the money, and compiling the necessary paperwork. On the other hand, purchasing a property can be more challenging, particularly for first-time buyers.
There are numerous procedures and legal requirements involved in purchasing a home. After putting down the initial deposit for the prospective property, the next step is filling out the necessary paperwork. When you buy a home, you must complete a lot of paperwork. It is sometimes a surprise and a shock. The needed paperwork will vary depending on the property you want to purchase.
Before the sale of a house can be finalised, the homebuyer signs many documents. Just the loan application process for your ideal home purchase can result in a list of documents for home loan. You’ll need to maintain these documents for future reference and your assessment. Here are some essential documents for buying a home that you should know for your home-buying process.
1. Sale Deed
It is the most significant piece of paper and legal document of property purchases. The sale deed usually shows proof of the sale and how the property was transferred, such as from the builder to the person. A sale deed is a critical legal document that proves who owns a piece of property. People who buy homes often want to sell them after a few years.
In this case, the sale deed is essential. Typically, the sale deed is executed before the sale agreement and only when all of the criteria outlined in the sale agreement have been met. Following these steps, you will be able to establish ownership of the property that you have purchased.
2. Mother Deed
A mother deed is a crucial piece of legal documentation that records the history of a property’s ownership, detailing every transfer of title resulting from a sale, partition, gift, or inheritance. It is possible to track the right of the property back to the beginning with its help. It is necessary to organise the Mother deed records to maintain their continuity.
If the sequence is absent, one should examine other documents from the registry office or search for their mention in other papers to update the series. When a home buyer applies for home loans in Bangalore against the property, financial institutions typically insist on seeing a copy of a crucial document known as the Mother Deed. Homebuyers may contact local advisors and authorities for assistance with creating this document.
3. Agreement of Sale And Purchase
The sale agreement has all kinds of information, like terms and conditions, a date when the property will be yours, details about amenities and common areas, etc. This agreement also includes all the financial information of the transaction. It holds the owner responsible for the property from that point forward. A great example of this is negotiating the price of the apartment. The Sale and Purchase Agreement includes a set of terms and conditions the buyer and seller accepts.
4. Khata or Extracts Certificate
In many sections of the country, an extracted document is called a Khata certificate. It is a tax document needed to register a new property and is one of the essential documents you need to buy a home. It has information about the property, like its size, location, and constructed area. It shows that the property is in the local municipal records.
5. NOC (No Objection Certificate) or Possession Letter
The Possession letter is a vital document created by the builder that specifies the date the purchasers will take possession of the property. After the builder has been paid and the completion certificate has been received, this document is drafted and submitted in the builder’s name. But this letter is not proof that the person owns the property. An Occupancy Certificate is necessary for this purpose and must be obtained by the prospective house buyer.
6. Completion or Occupancy Certificate
Those purchasing their first house should avoid purchasing a property that does not have a Completion Certificate. The Completion Certificate is a piece of paper that says the building was inspected after it was finished and followed all the rules set by the municipal corporation or the local development authority. It is firmly suggested that you DO NOT invest in a real estate asset that does not currently possess a completion certificate.
Without this certificate, the building is considered illegal, leading to a fine or even eviction. But suppose a developer can’t get an occupancy certificate from the builders. In that case, the residents can go to the municipal corporation and ask for the same thing.
7. Allotment Letter
Suppose you are interested in booking a home that is presently in the process of being built. In that case, you will need to obtain an allotment letter. It includes all you need to know about the payment for the apartment as well as any additional costs that you might have to pay for any other amenities that are offered. This letter is essential when applying for a loan from the bank since it specifies the total amount the buyer must pay.
Conclusion
When you buy a house, it’s like a dream coming true. However, if even just a few things go wrong, it won’t take long to ruin your goal. To avoid this, knowing what documents you need to look at before buying a house, whether it’s a finished home or one still under construction, is essential.