Know your Property: Important Checklist
By Pratik Balasaria
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If you wish to own a property in India, you should know substantial paperwork is required to fulfill all the formalities. As a homebuyer, if you are looking for documents to know your property, it is crucial to have a good understanding of the paperwork that is involved and also to know what each document states about your property. The knowledge will save you from getting into trouble. As a homeowner of a new flat in Kolkata, you must also be aware of the documents that need to you need to produce in their original form to avoid complications at the time of sale. 

Know your Property

Know your Property

Don’t worry, it is not as intimidating as it sounds. We have got you covered with this important checklist of property documents. Let’s take a look-

1. Sale Deed

The sale deed is one of the most important documents required for property purchase. It is compulsory to produce a sale deed in original as it establishes the ownership of the title of the property. To know your property and its documents judiciously, register the sale deed in the Sub- Registrar’s Office of the area where your flat in Kolkata is located.

2. Extracts

Commonly known as the Khata certificate, this particular document has different names in different states. The extract is an important document for the registration of your new flat in Kolkata. The extract or Khata certificate is also required if a homebuyer wishes to transfer the ownership of the property at a later stage. The certificate is therefore a proof that your property has an entry in the local municipal records and that the construction has been done as per an approved plan. Furthermore, banks also ask for the Khata certificate before granting you a home loan for your house in Kolkata. 

3. Mutation Register Extract

This document specifies the details of previous ownership and is limited to Gram Panchayat properties. The mutation register extract is not required in original, however, it is a mandatory document if the property falls under Gram Panchayat jurisdiction.

4. General Power Of Attorney

The General Power of Attorney is a must-have document to prove if an authorised person on behalf of the property owner has done the sale or purchase of a particular property. You must produce this document in original when you apply for a home loan.

5. Copy of Building Plan

As a homebuyer, you must acquire a copy of the building plan that is approved by the statutory body. This document establishes that the construction of the property in Kolkata is legal and is undertaken according to set rules and regulations.

6. No-Objection Certificates (NOC)

To know your property the best way, you should know that there are as many as 19 NOCs that you as a builder of a housing project or a real estate developer in Kolkata need to acquire from different authorities. However, the number of NOCs may vary according to specific state rules. In case of doubt, request your developer to provide you the copies of these NOCs, and keep them for your personal record.

7. Allotment Letter

Another important document in order to know your property is the allotment letter. It is a crucial document for getting a home loan. A developer or the housing authority issues this document. The allotment letter has the description of the property and provides details of the amount paid by the buyer to the developer. As a homebuyer of a new flat for sale in Kolkata, you should know that an allotment letter is not the same as an agreement of sale. An allotment letter is issued on the letterhead of the authority whereas a sale agreement is documented on a stamp paper. Furthermore, an allotment letter is issued to the first owner of the property and other owners can request a copy of the original letter from the seller.

8. Sale Agreement to Know your Property

A sale agreement is an important document to know your property as it includes all kinds of information about the property―the possession date, the payment plan, the specifications, the terms and conditions, the details about the common areas and facilities, etc. The agreement also holds the developer responsible for the construction of the property. You must produce the sales agreement in original for property purchase and for a home loan application.

9. Possession Letter

The possession letter is provided to the buyer by the developer and includes a date on which the latter would grant the former the possession of the property. The original copy of the possession letter has to be produced for applying for a home loan.

10. Payment Receipts

As a homebuyer, it is important that you collect original payment receipts from the developer when you are buying a new property. If you are buying a resale property, you need to ask for a copy of the receipts from the seller. You will need to produce these in the bank.

11. Property Tax Receipts

As a homeowner, it is mandatory to pay taxes. If you are buying a resale property, make sure that the previous occupier or owner has paid property taxes and there are no pending dues. Property tax receipts are an important document to prove the legal status of the property.

12. Know your Property with an Encumbrance Certificate

An encumbrance certificate is an important document to prove that the property does not have any pending legal dues or mortgages. Banks require an encumbrance certificate when you apply for  a loan. This certificate also has all the details related to the transactions that took place over a period of time. In India, Form 15 is issued if a property has any encumbrance registered; otherwise, Form 16 is given to the owner, which proves that there are no encumbrances.

13. Completion Certificate

You require this document for getting a home loan. It establishes the fact that the building is constructed as per an approved plan.

14. Occupancy Certificate to Know your Property

The local authority usually issues an occupancy certificate to the developer. The document  proves that the building is finally ready to be occupied and the construction has been done according to a sanctioned plan. In a nutshell, an occupancy certificate is issued when the property construction is completed according to the sanctioned plan and is ready for occupancy.

Knowing your property is important

If you are thinking of buying property, there’s good news for you! Real estate experts in India give big thumbs up to investment in the real estate sector for the next two years. 2020-21 anticipates great investment potential for both residential and commercial real estate business in India. The past few years have witnessed an impressive demand for co-ed office space, especially in cities with IT/ITeS players, such as Bengaluru, Kolkata NCR, and Pune. Furthermore, the strict Government regulations and structural economic policy reforms introduced in the Indian real estate system can bring more financial discipline, accountability, and transparency in the market.


What to check before buying property?

Among the many things, key legal checklist for buying a property is-
1. Property documents checklist
2. Verify the identity of the seller
3. Conversion and land-use permissions
4. Construction approvals
5. Occupancy certificate
6. Status of tax payment
7. Encumbrance
8. Physical survey and access to the property.

How do you know if a flat is legal?

The following checklist will help you find out if the flat you are considering is legal: 
1. Title papers
2. Bank approvals
3. Encumbrance Certificate 
4. Approved map of the flat site 
5. Property tax slips 
6. Location in a registered housing society. 

How do I choose a flat to buy?

Before you choose a flat to purchase, consider the following parameters: 
1. Property price 
2. Your financial budget 
3. Carpet area of the flat 
4. Land record
5. Legal check of the property 
6. Apartment possession date 
7. Financing banks
8. Builder-buyer agreement
9. Location of the flat. 

Are 1 bed flats a good investment?

1 bed flats in a good locality is a good investment opportunity. With good connectivity to work hubs, transportation, schools, and entertainment centers— 1 bed flats are much sought after by millennial tenants who are willing to sacrifice the space too. 

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