Check These Legal Documents Before Buying A Property

by gopi sai Best Digital Marketing agency | SEO Company - Geek

It is a bewitching affair when you are house hunting—deciding on the neighborhood that is safe and to your liking. It would help if you chose wisely what amenities you and your family need and want. Then decide on the kind of home you are looking for. It could be a flat, a villa, a row house, or any property. You are deciding on the plot size or the carpeted area, the number of bedrooms, and all the amenities you might find as necessities for you and your family. You might find some of the amenities as necessities and some as luxuries.

Buying a villa, flat, or property requires hefty capital investment, and any mistake made during the process can cause you a great deal of inconvenience and trouble. It is vital to seek legal guidance during property purchases to avoid legal issues. Buying a property can be hassle-free with proper legal advice, correct and required documents, and verification of relevant information. But once you decide what property you want to purchase, things get all contemplative; if you have questions such as what documents do I need to buy my first house?, Or what legal documents are required for the purchase of property, continue reading this article.

Legal documents required for a smooth Real estate transaction:

● Agreement to sell: This legal document contains all the vital information related to the sales, a description of the property, terms, and conditions agreed upon by the seller and buyer, and the agreed sale price.

● Absolute sale deed and title deeds: These legal documents depict the actual transfer of ownership. It is to be registered with the sub-registrar of the region.

● Title search and reports: This document has information on the previous owners, tenants, and a description of the property. This document is a must if you are applying for a home loan.

● Khata certificates: Though named differently in a few states, these legal property documents act as proof that the property has an entry in the local authority records.

 Property tax receipt: This document shows that the prior owner has paid all taxes. It ensures that no dues are pending and legalizes the status of the property.

● Encumbrance certificates: It is an essential document needed when applying for a loan as it states that no loan dues are pending.

● Occupancy certificate: This certificate is given by the Municipal Corporation after the construction of the building to verify that it was constructed according to the sanctioned plan and is ready to be occupied.

● Non-objection certificate(NoC): The developers need to acquire NoCs from the departments such as the Environmental Department, the pollution board, the sewage board, the Traffic and Coordination Department, etc. These legal documents are essential to ensure “Intimation of Disapproval” for construction.

● Sanctioned building plan by statutory authority: This document guarantees that the buyer is aware of any developer deviations from the approved plan.

● Bank statement if any outstanding loans: These documents are proof of any outstanding loan against the property. While buying a property, ask the seller for this legal document.

● Power of attorney, if available: The original Power of attorney must be stated if a person acts on the property owner’s authorization.

● 7/12 Extract Document: This is the most necessary certificate when purchasing any land in Hyderabad. It helps to check current or past disputes and litigation. This document includes survey numbers, the owner’s name, registration date, and land ownership history.

RERA Compliance Checklist:

RERA stands for Telangana State Real Estate Regulatory Authority. This act establishes specific standards for the construction and development of Real Estate that will improve the openness of real estate transactions.

Adding RERA to your house-buying checklist is a must. RERA has given home buyers several rights and has set forth specific laws and regulations that all builders and developers must observe. The developers should register their projects with the authority constituted under the act.

The list of property documents required for registration under RERA are:

❖ PAN Card of the builder

❖ ITR of the last three years and the balance sheet of the builder.

❖ Clarification about the apartment includes carpet area, number of floors, parking space, etc.

❖ Declaration of having the legal title of the land with proof.

❖ Details of the land, such as rights, title, and mortgage.

❖ The actual owner’s consent letter with legal documents is required if the builder is not the landowner.

❖ Details of the project include location, sanctioned plan, and layout plan.

❖ Property ownership documents such as proforma of allotment letter and agreement of sale.

❖ Information about the persons involved, such as architects, engineers, and others.

RERA registration certificate is not only a must for developers but also for real estate broker agents. Before hiring, ask the person for their RERA registration.

Flat purchase checklist

The legal documents that are required while buying a flat are:

● Sale deed: You must check for this legally registered document as proof of the property’s sale and transfer.

● Completion and Occupancy certificates: When the building project is finished, the municipal authorities provide a completion certificate. In comparison, the local government agencies give the occupancy certificate once the project is ready for occupancy. These two documents are vital while applying for a home loan.

● Building plan: This certificate is the project blueprint, layout, and utilities. Buyers must make sure that the local authorities have approved the project.

● Encumbrance Certificate: The buyer must check this certificate, as it shows the property has no monetary or legal liabilities.

● Mutation Certificate: This certificate identifies the owner of the property in the government records for their tax liabilities. These property papers are also known as the Possession Letter or certificate.

● General Power of Attorney: The buyer must have a copy of this document to ensure that an authorized person preceded the home purchase or sale.

● No Objection Certificate: This legal document proves the property has no demolition or acquisition claims pending.

Buying properties as investments:

● Due to their potential for more significant income flow, commercial buildings are regarded as one of the best types of real estate property investments. Usually, property investments are held to earn rentals for capital appreciation or both.

● One can also buy weekend homes as an investment, as they are an excellent scope for extra income if you rent them out as Airbnb or service homes. Weekend home buyers in Hyderabad have a high revenue by investing in weekend homes.

● Luxury villas in Hyderabad are great investments, too, as their values will rise high in the future as real estate is a booming industry.

Telangana ‘GO 111:

Telangana ‘go 111 has been preserving the area of a 10 Km radius around the Osman Sagar Lake and the Himayat Sagar Lake from being polluted, as these lakes provide us with drinking water. Since the government plans to lift the ban on the land, it’s great potential for the real estate industry. Though a boom for the Real Estate industry, lifting the ban will cause a significant loss to the lakes as they are one of the drinking water resources serving our city.


Buying a property is a massive decision as you will invest most of your hard-earned savings. You will have many doubts and questions like what kind of checklist people have for buying a house or what precautions should be taken while buying a property may arise. It’s a must to have legal advice, make a required property documents checklist and work through it. Ensure that the seller has all the legal documents in order.

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About gopi sai Freshman   Best Digital Marketing agency | SEO Company - Geek

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Joined APSense since, May 31st, 2022, From Hyderabad, India.

Created on May 18th 2023 02:18. Viewed 85 times.


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