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Buying a home is one of the biggest investments in an individual’s life. Some may pay the complete amount in cash while others may require a loan to make the purchase. There are others who would buy a resale flat and not in a newly constructed building. Purchase of the resale flat has its own benefits. It is available for ready-to-move-in and if you purchase it you can immediately move in or put it on rent. The cost of the resale flat is lower than the new one as it may be a few years old. The property value depreciates with time and you will be able to negotiate better for the price if you are aware of the surrounding prices. Whatever may be your reason for purchase it is always safe to check the documents carefully otherwise you can land in big legal trouble. The documents that you should check before purchase of a property are-
1) Verify the title-
In real estate ‘Title’ is the rights that a person has from the lawful owner of a property. During property transfer, a clear title without any defects is always preferable. This serves as evidence of the right of the owner over the property.
A person can do the title search by visiting the office of the Registrar. All the documents related to the history of the property would be available. You can ask for the title report that contains information about the title holder’s name, joint encumbrance, mortgages, property tax, etc.
2) Building approval certificate-
A building approval certificate is an approval from a building surveyor that the building complies with all the building restrictions. The building approval consists of the building plan and the layout for the construction of the building.
Do you know the consequences of illegal construction? This can give you trouble once you purchase the flat and if any extra unapproved construction has been done there is a risk that it would be demolished or declared unfit for occupancy later on.
3) Completion certificate/Occupancy certificate-
The completion certificate shows that the building is constructed according to the building by-laws and certifies that the property is fit for possession by the buyers. The occupancy certificate certifies the property for adherence to civic amenities, sanitation, electricity, and other clearances and shows that the structure is safe for the occupants and there is no violation of the building construction rulers.
The municipal authorities issue the completion certificate while the builder issues the occupancy certificate. The buyer should collect both the documents which are important and show that the flat is fit to be occupied.
4) Possession certificate-
The possession certificate is also called the possession letter. It is important when purchasing a resale flat. The builder hands it over to the first owner when they take the possession physically and it is transferred to the next owner once the property is occupied. The possession certificate proves that the possession of the property has moved from the seller to the buyer. It signifies that the property is with the buyer and that the terms related to the agreement have been fulfilled.
5) NOC from the bank-
Check if the buyer has taken any loan from the bank or a financial institution. The loan should be cleared and the seller should have a NOC which is sometimes also referred to as the “NO Dues Certificate”. No dues certificate is issued by the lender once the loan has been paid off completely.
6) Utility Bills-
Don’t forget to check the latest utility bills like electricity bills, gas bills, or water bills. This will exhibit if any of the bills are not paid and you can ensure to are paid. The bills should be in the name of the owner.
7) Latest Tax receipts-
Always check for the latest tax-paid receipts before buying a resale property. This will show that the past homeowners have been paying them on schedule and that there is no involvement of fraudulent activity.
8) NOC/ No Dues certificate from society-
When you are buying a flat from a co-operative society it is good to get No dues certificate from the society. This shows that the seller is not liable to pay any dues to society. The NOC signifies that the society has no objection to transferring the share certificate to the buyer.
9) Sale Deed/ Title Deed-
The buyer should get the original title deed/ sale deed which will contain the seller’s name, information on the property, and the loan if any they have availed. It reveals whether the seller has clear ownership over the property.
10) Share Certificate-
The share certificate is a document that reveals the rightful owner of the cooperative housing society’s shares. It contains information about the member of the housing society and the number of shares he/she holds and the value paid. This share certificate is to be transferred to your name with a new share certificate issued by the society.
The above are the important documents that you need to check before buying a resale flat. Checking the documents will prevent the buyer to go through legal hassles in the future. The buyer can also take help from a legal expert who will guide them through the whole process of purchase and check all the documents.