Legal Documents Required for the Purchase of Property in India

What are the documents required for land purchase?

While buying land is a great investment plan, it can be a messy affair also. Collecting legal documents to purchase property in India involves the collection of various legal documents that are required by law. Below is the list of the legal documents required for the purchase of property:-

Agreement to Sell 

Before executing a sale deed, an agreement to sell is executed between the seller and buyer, in which all the details of the property and the agreed terms and conditions of the parties are mentioned. It is one of the first legal documents that are required for the purchase of the property. One must have a signed and registered agreement to sell, drafted on a stamp paper, and duly registered with the sub-registrar, to ensure that the agreement is binding on both the parties.

Sale deed 

Also known as absolute sale deed or title deed, this is the most important official document involved while purchasing land. It officially records the actual transfer of ownership of the property and needs to be registered at the sub registrar’s office under whose jurisdiction the property would fall. One must ensure that they have all title deeds and conveyance deeds to determine the ownership of the property for the last 30 years.

Title search and report

This document tells the history of the land that has been registered with the concerned authority and includes all the details of the land and names of the title holders who had held the ownership of the land before. 

Extracts from Mutation Register 

Before purchasing a land, buyers need to obtain the relevant excerpts from the mutation register as it contains essential information about the last owner, the present owner, mode of purchase, nature of the land, and the total area of the land on which the property is located.

No Objection Certificate 

Also known as NOC, this document is the most essential document required for land purchase. It is procured from the government departments to ensure that no statutory dues are pending concerning the land and also to make sure that the property is regularised and not under acquisition or demolition from any government department.

Encumbrance Certificate 

This document shows that the property is free from encumbrances or loans. It is mainly obtained while procuring a loan from the banks to purchase the property. It is one of the key documents for availing of bank loans from banks or financial institutions.

Property Receipts 

Buyers need to have all the signed payment receipts from the seller specifying the receipt of the money/advance paid on account of the purchase of the property.

Khata Certificate

A Khata certificate is a legal document that helps in identifying the ownership of a property. It is issued by the municipal corporation to calculate various taxes concerning the property. It is a crucial document to identify the owner of a property. It is provided to a taxpayer for registering a new property, transferring any property, or for availing of the various amenities such as water connection, trade license, building license, etc. Through, the khata certificate it is proved that a property owner has an account with the municipality for paying taxes and further taxes are deducted from the person mentioned in the khata certificate. The Certificate can be obtained by submitting a letter of requisition to the Assistant officer, supported with the details and receipts of the latest tax payment.

To complete the registration of khata certificate documents like title deed, receipts of tax payments, the sketch of a property depicting its boundaries and location, improvement charges, and flow chart of title, etc are required.

Learn these things before buying a property and questions that you should ask builders before purchasing a property.

What are the documents required for a house/ flat purchase?

Documents required to purchase land or house are more or less similar. There are a few additional documents required for buying a flat as given below:

Occupancy Certificate -

It is given by the municipal corporation of the said property after the construction of a building to establish that it was constructed according to a sanctioned plan and now is ready to be occupied by the buyer.

Sanctioned Building Plan -

It helps you to ascertain that the building has been constructed as per the approved plan and no rules have been flouted by the builder.

Allotment Letter -

If you purchase a property from a builder or society, you need to obtain the allotment letter to know how much money is outstanding to be paid to the builder or society on account of the said property.

Power of Attorney -

Power of Attorney is given to prove that the person executing all the documents is given a duly right by the real owner to execute the same.

FAQs

What is a mutation in the land?

It is the transfer or change in the title entry in revenue records of the municipal corporation of the said property. It is also known as Dakhil Kharij in Hindi.

Are EC and ROR the same?

Yes, the Encumbrance certificate and Records of Rights, tenancy, and crop inspection certificate are similar as they reflect the latest ownership of the properties.