What are the documents you should look for before investing in any property?

Land transactions are tricky. There are many things a buyer needs to know before investing in a property. Buying a property or investing in a property is a big deal, especially in India. You have to stay extra cautious to avoid unwanted disputes and hassles. One of the best ways to ensure smooth real estate transactions and secure your hard-earned money is to seek and examine certain must-have documents before going ahead with the purchase.

 Below are the documents that you should look into before investing in any property.


  • Sales Deed/Title Deed/Mother Deed


Sales Deed acts as proof of sale and transfer of ownership from the buyer to the seller. It is a mandatory document that talks about the agreement on certain terms and conditions by both parties. It is important to ensure a clear title before executing the sale deed. The title deed gives you information about the original owner of the property. The title has to be free of disputes prior to the registration of the sale deed. The mother deed or parent deed is another important legal document that shows the details about the change in ownership of the property, be it through sale, gift, partition, or inheritance. It is important that this sequence be updated to reflect the current owner.


  • Encumbrance certificate


An encumbrance certificate is a record of all the shows all the information about the charges and liabilities of the property. It is proof that the property is free of legal dues. The EC will have the information on the transactions done on the property over a stipulated period of time. 


  • Building plan


Construction is considered illegal without  approval from BDA(Bangalore Development Authority) or BBMP(Bruhat Bengaluru Mahanagara Palike) or BMRDA(Bangalore Metropolitan Region Development Authority) or BIAAPA(Bangalore International Airport Area Planning Authority) under KMC(Karnataka Municipal Corporation). A set of documents have to be submitted to get the building plan approved. The process usually takes 4 to 5 days. 


  • Power of Attorney


This is the document that proves that a person is given the right of the property by another one. While buying the property, it is important to know that the seller has full rights to that property.


  • Khata


Khata certificate typically consists of an (a)Khata certificate and (b) Khata extract. A Khata certificate is mandatory when a new registration is made or a transfer of property is done and a Khata extract is obtained from the details of the property from the assessment registrar. Banks usually ask for the Khata certificates before granting the loan. 


  • Tax payments


It is important to ensure that all the taxes of the property are paid for the last 3 years by the seller with the municipality before buying a property. 


  • No Objection Certificate


The seller should provide the buyers with a copy of the urban non ceiling no-objection certificate and NOCs for water, electricity, etc. There are 19 NOCs that the developer should get from several authorities. The number might vary depending on the state. 


  • Mutation certificate


This document will contain all the information about the property including the name of the seller, size of the property, location, and other important details. 


  • Occupancy/Completion certificate


Occupancy certificate is achieved after the authority inspects the property to ensure that specified norms are met in the construction. The completion certificate is issued by the municipal authority and it is proof that the property is in compliance with all the rules and regulations in terms of height, distance from the road, etc., and is constructed according to the approved plans. You might need a completion certificate to get a home loan.  

Trusted developers like Merusri are very keen on providing the buyers with correct documentation which will help them stay out of disputes and problems in the future. At Merusri, we take transparency and customer satisfaction very seriously. We intend to bring you hassle-free lands with proper legal documents with no hidden clauses. It is this transparency and trustworthiness that has made us one of the most trusted names in real estate.