Planning to buy property? Nine documents that you should have

If you have a plan to buy your dream home, almost all banks would come forward with an offer of a loan. But what are the documents that you should have with you when you are planning to buy a property?

Money9 gives you detailed information of nine documents that are essential while buying a property.

Sale deed

The sale deed is the most important document of the proof of the sale of the home or the property. It states the transfer of the property from the seller to the buyer.

All the terms and conditions of what the buyer and seller mutually agreed upon is written with the signature, photographs and even thumb impression. If you going for a home loan you have to furnish the sale deed to the bank.

Mother deed

Mother deed is another important document asked by the banks when a buyer wishes to take a loan from a bank or other financial institutions.

This document traces the ownership history of the property.

Sale agreement and purchase agreement

The document prepared in anticipation of a sale of the property.

It contains a detailed description of the property and states the terms of conditions between the buyer and the seller, including the purchase price as agreed upon.

Building approval plan

This document states necessary sanctions under the provisions of the building bylaws, master plan and local body acts. This consist of two things the building plan and the layout approval.

Details of the property are laid down here. Banks or the financial institutes need this detailed information. It is mandatory.

Possession letter

This document is drafted by the builder. It states the date of the buyer’s possession of the house.

It is made in the builder’s name and is created after receipt of the completion certificate. It is not proof of one’s ownership of the property.

Completion certificate or occupancy certificate

This is very important when you are buying a flat in a building which has recently being constructed. This is also applicable for the purchase of a flat that is being sold by an earlier owner.

This document mentions whether the building has passed inspection after completion. It confirms that the building follows all the laws laid down by the local authority and it is essential for availing the basic utilities like proper drinking water, electricity and sewerage connection.

Do not buy a new flat without these documents as it could be deemed illegal.

Encumbrance certificate

It is a certificate of assurance that the property is free from any legal or monetary liability such as mortgage or outstanding loan.

Khata certificate

This is a revenue document containing the details of the house like size, address etc. It is a form of identification and might be required while taking a home loan.

It is also needed for electricity and water supply connection.

Allotment letter

This is a crucial procurement if one plans on booking a house that is still under construction. It includes all the required details regarding the payment of the property. It also contains the charges for additional facilities.

A bank might ask for it when you apply for a home loan.