Check these 7 documents before buying a home; otherwise, the deal could run into trouble

Check these 7 documents before buying a home; otherwise, the deal could run into trouble

For most people, buying a home is a lifelong dream. Consequently, making a decision based solely on location, design, and amenities can be risky. Even a minor error in property documents can later lead to issues concerning ownership rights, bank loans, taxes, or legal disputes. Thus, it is essential to verify specific documents before paying the booking amount or the full purchase price.

Examine the Sale Deed and documents of previous owners

First, verify whether the person selling the house is the genuine and legal owner. The Sale Deed is one of the most critical documents for this purpose.

Additionally, review documents such as previous Sale Deeds, Gift Deeds, or Partition Deeds to trace the history of property ownership over the years. It is advisable to examine the ownership chain for at least the past 30 years.

Check the Encumbrance Certificate (EC)

Is there an existing bank loan, mortgage, or other legal claim against the house you intend to buy? An Encumbrance Certificate (EC) provides this information.

It contains details of registered transactions related to the property over a specific period. If the previous owner mortgaged the property to secure a loan and failed to repay it, purchasing the house without verification could lead to complications.

Check the Property Card or 7/12 Record

In urban areas, the Property Card provides details such as the landowner’s name, plot number, and the land’s area.

Meanwhile, in states like Maharashtra, the 7/12 Extract (also known as Saat-Bara Utara) is crucial when purchasing land or a plot. It records details such as the survey number, landowner, land type, and other related information.

Obtain the Mutation Certificate

After purchasing the house and completing the registration, it is essential to have the new owner’s name recorded in the government revenue records. It is known by various names in different states, such as Mutation, Dakhil-Kharij, or Ferfar.

If the records are not updated, certain government records—including those for property tax—may continue to reflect the previous owner’s name.

Do not buy a flat without checking the OC and Completion Certificate.

If you are purchasing a flat in a building or society, ensure you check the Occupancy Certificate (OC) and Completion Certificate (CC).

The Completion Certificate confirms that the building’s construction has been completed in accordance with the approved plan and prescribed regulations. Meanwhile, the Occupancy Certificate indicates that the building is approved for habitation.

Check the Building Plan and Conveyance Deed as well.

Verify whether the building plan for the structure constructed by the builder has been approved by the relevant authority; this information is available through the Building Plan Approval.

If the home is located within a housing society, the Conveyance Deed is also crucial. Through this document, rights to the land and common areas are transferred from the builder to the society.

Check RERA and government records online.

If you are buying a home in a project, check whether it is registered under RERA. You can also view project-related complaints and other available information on the state’s RERA portal.

Additionally, verify documents such as the Property Card, 7/12 extract, and other digital land records on available government portals.

Keep this brief checklist in mind before making any payments.

Before finalizing the deal, verify the chain of ownership, Encumbrance Certificate, approved building plan, OC/CC, property tax records, RERA registration, and government land records. Furthermore, having the documents reviewed by an independent property lawyer before paying a large sum can be beneficial. This helps minimize the risk of future ownership disputes or other legal complications.

Note: This information is based on a press release issued by VMPL via the news agency ANI; Prabhat Khabar bears no responsibility for the content.