Fraud, corruption, cheating are words that one hears quite often nowadays. There are companies that cheat clients, and there are also companies that are very honest, transparent and with good intentions. Recently the government has launched many initiatives to make real estate a more transparent and safe place to invest in, not just for buyers, but for investors and builders too. The most important thing is that the greater the amount of money involved, greater the risk of damage if you’re dealing with an unscrupulous party. So, what can be done? The best option is to be properly informed so that you can check out things on your own. And contrary to popular beliefs, understanding real estate is not rocket science!
So, here we bring you 7 real estate documents that you must possess for buying property, along with relevant information about them.
1. Sale Deed: This is the main document that acts as an evidence of your procurement of property. Not just that, apart from being an evidence of sale of property it also acts as the transfer of ownership from builder to investor. Often the length of the sale deed is too much and investors tend to ignore reading it through and through. It’s important to go through at least the major terms and conditions before you sign it. Also, it is extremely important to make sure that the property has a title clearance.
2. Mother Deed: Also known as the parent document, the mother deed is immensely important for all resale purposes. This document contains the entire history of purchases and sale of the property since inception. It helps in tracing the various ownerships of the property. Also required when procuring the property through a loan, in case you do not have these, you must procure them through the registration authorities for a fool proof transaction to take place.
3. Approval Plan: The approval plan of your building is immensely important for all future security. There have been cases wherein properties have been built without proper approval or with partial approval and eventually the authorities resort to force. This creates a major problem for you as the government will usually not pay any compensation for the destruction to you. Then who is to blame? It is best to avoid such a scenario completely, and make sure your builder has the relevant approvals with complete corresponding technical details. The documents must be approved by the concerned jurisdictional officer or from any other officer who is authorized by the government commissioner. The list of documents required for approval include:
· Title Deed
· Property UID Number
· Property Assessment Extract
· Updated Tax Receipt
· City/Panchayat Survey Sketch
· Earlier Sanction Plans
· Demand Drafts
· Land Use Certificates
· Foundation Certificate
4. Power of Attorney: This is a very crucial document that gives the power to sell or mortgage your property to a second person. This document allows the other person to make these major decisions on your behalf without seeking your approval before every decision. Therefore, you must be extremely careful before trusting someone with a power of attorney. The government of India has made the registration of this document mandatory.
5. Completion Certificate: A mandatory document at the time of purchase, it is issued by the Municipal authority at the time of purchase after completion. It verifies that the concerned property has been built in compliance with the applicable rules and as per the approved plans.
All the documents mentioned above are essential when it comes to real estate purchase, sale and renting. It highly advisable to have in depth information about such documents before considering any real estate decision. Make sure you procure the aforementioned documents before buying or selling your property for a safe and secure financial future.