Real estate in India: documents to buy a flat in kolkata

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If you are planning to invest in real estate in India, brace yourself for a lot of paperwork. Luckily, the State of Kolkata recently introduced an e-registration platform for property documents considering the urgency of property registration during the lockdown in real estate Kolkata. Through the online process, you can now pay stamp duty, verify documents, and register from the comfort of your home with the documents required for house registration. The move has also opened revenue channels for real estate Kolkata and for the State Government which faced a paucity of cash due to the lockdown. 

Furthermore, real estate developers in Kolkata said the move helped them to register sale agreements for deals that were concluded before the lockdown. They could also collect payments from customers through the online platform. The online access came in handy to real estate companies in Kolkata who had finished the projects but were unable to hand over the property to buyers despite the completion certificate. 

Real estate in India: Documents required for house registration and buying a flat in kolkata

Just as important as paperwork and documentation are in property deals, it is equally complicated and cumbersome. Make sure to verify and produce the following documents while you are buying a home either from established real estate developers in Kolkata or from individual owners. You can also read the real estate laws in India for a complete understanding

Allotment Letter

An allotment letter is issued to the first owner, so you should ask for a copy of the original letter from the seller—previous owners or real estate developers in Kolkata. 

The letter has all the necessary details concerning the schedule for the payments to be made, the price agreed upon, the amount paid by the buyer to the developer, in addition to a description of your real estate property in Kolkata.  

It is considered one of the most important documents required for house registration and in real estate in India. You will always need an allotment letter while applying for a home loan. An allotment letter is issued by a developer or by the housing authority. 

Note that an allotment letter is not the same as an agreement of sale. A sale agreement is documented on a stamp paper, whereas an allotment letter is issued on a letterhead of the authority. 

Sale Agreement 

A sale agreement will have all the details about the property, including the date of possession, the payment plan, the details of common areas, facilities, and terms and conditions.  

A sale agreement is necessary for acquiring a home loan. It should be produced in original for property purchase.  This is one of the preliminary documents required for house registration that you need to produce before the sale of a house. 

The agreement will throw light on the real estate company at Kolkata, seller, money, and obligations about the sale like site plan, flat layout and car park, and other facilities. 

Payment receipts 

When you are buying a property, make sure to collect and document all the payment receipts from the real estate company at Kolkata. You will be required to produce a copy of receipts from the seller to the bank. The receipts are evidence of the payment you have made to the developer. 

Property Tax Receipts 

Property owners are obligated to pay property taxes. While making deals in real estate in India, make sure that the previous owners have paid property taxes and ensure pending dues are paid before you take possession. Maintain a record of all the previous property tax receipts. These will further also help in claiming the legal status of the property and is hence one of the essential documents required for house registration.

Sale Deed

A sale deed is signed by the first buyer and the builder during the time of purchase from a private real estate company in Kolkata. Produced in original, sale deed claims the ownership of the title of the property. You might want to begin with this document. 

You can register the sale deed in the Sub Registrar’s office in the area you wish to buy the property in. 

Completion Certificate 

A completion certificate is another important document in real estate in India that must be produced for a home loan. It is issued by the builder after the construction of the project is completed. 

The certificate proves that the building is constructed according to an approved plan and in accordance with the safety norms of the state and the Government Buildings Act, 1899 and ensures that the newly acquired property adheres to the requirements of the municipality or the state laws. It is obligatory for the seller to provide a completion certificate to the buyer. 

Make sure to enquire the real estate developers in Kolkata about the completion certificate during your purchase. 

Copy of Building Plan 

If you intend to invest in real estate in India, as a buyer you are required to produce a copy of the building plan that is approved by the statutory body. This document helps to claim that the construction of the property is legal and is undertaken according to set rules and regulations. 

The copy of the building plan with its specifications to the floor plan will also help you to understand the orientation and view of each room. 

Proof of payment of stamp duty

Remember to keep this document handy during your journey of buying a house in real estate in India. Stamp duty is a percentage of the transaction value levied by the State Government on every registered sale.

Possession Letter 

Make sure you take the possession letter from the real estate company in Kolkata you are dealing with. A possession letter sets a date which grants you the possession of the property. You will be required to produce an original copy of this document for acquiring a home loan which makes it one of the important documents required for house registration.

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Important documents real estate developers in India should have

RERA certificate

Every real estate developer in India has to register with the respective State’s Real Estate Regulation and Development Act (RERA). 

For instance, if you are a real estate developer in Kolkata, upon your registration with RERA, a unique registration number and certificate is issued to you and the project. 

No Objection Certificate 

No-Objection-Certificate is a preliminary document that needs to be produced while building a property in real estate in India. Commonly known as the NOC, the document has to be acquired from various authorities. 

Be prepared to produce at least 19 NOCs from different developers and authorities, however, the number varies as per specific state rules. Some of these authorities include the Municipal Corporation, Area Development Authorities, Electricity Boards, Water Supply & Sewage Boards, and other concerned authorities. 

Clearance Certificate

The builder is given the Clearance Certificate after he receives the No Objection Certificate which claims the payments made for the property purchased. A clearance certificate provides the builder clearance to drainage, environment, fire, hydraulic, water, sewage, traffic, and archaeological survey.

Clear Commencement Certificate

This certificate is issued to the builder by the town planning authorities after the builder obtains licenses and sanctions for the project map. The certificate is obtained after the foundation of boundaries and superstructure is laid out. This document allows the builder to commence the construction of the project.

Encumbrance Certificate 

An encumbrance certificate is necessary to claim the property that does not have any legal dues or mortgages. It is one of the key documents that banks ask you to produce for a loan. The certificate also has all the details related to the transactions that took place over a period of time. Real estate in India demands Form 15, which is issued if the property has any encumbrance registered. In other cases, Form 16 is given to the owner, claiming that there are no encumbrances.

Occupancy Certificate 

This certificate claims that the building is suitable for occupancy. It is issued by the municipal corporation to developers, for instance, to the real estate developers in Kolkata to confirm that a building is ready to be occupied. The certificate also proves that the construction has been undertaken as per the sanctioned plan and abides by the norms of the state of Kolkata. It is sometimes also referred to as the Clear Occupation Certificate.

Extracts 

The extract is known by different names in every state. Commonly, it is also called a Khata certificate. This document claims that the property has been entered into the local municipal records and the construction is undertaken as per the approved plan. 

A khata certificate is demanded when you wish to transfer the ownership of the property. Moreover, banks also ask you to procure the document before granting you a home loan. 

Mutation Register Extract 

In real estate India, a mutation register extract is granted to Gram Panchayat properties and is necessary only if the property falls under the Gram Panchayat jurisdiction. The document provides details of previous ownership and is not necessarily required in the original.

Be informed with the essential documents required for house registration

If you are a homebuyer, make sure to check out the specifications. This is necessary to ensure that you are getting into safe hands and getting what has been promised to you by the builder. This will also help you to understand if the proposed facilities by the real estate companies in Kolkata, for instance, are suited to your needs.  

Whether you are a buyer or a real estate developer, you may also consider seeking professional guidance for understanding your way through the nitty-gritty knowledge about real estate in India. A real estate consultant or a lawyer will make you understand legal documents and also help you make an informed choice of property.

You can also refer to our blog “Flats in Kolkata: A buying guide for luxury, premium and affordable flat at Kolkata” and “buy flat in kolkata: Difference between A-Katha vs B-Katha”