Checklist of Property documents is very crucial step of property purchase process. Property transaction in India is document intensive exercise because of complex legal, statutory and regulatory framework. Based on queries received from my clients, i can conclude that approx 80% buyers don’t get complete property documents at the time of purchase. These buyers struggle at the time of sale of property. Another problem linked to property documents is that buyer or a seller is not aware why specific property document is required, whether it is required in original or not etc. To help readers of my blog, i have created a comprehensive checklist of property documents. I will keep updating this property documents list as and when required. Also i would like to add that some states in India require additional property documents which vary from case to case basis.
1. Sale Deed/Title deed /Mother deed/Conveyance Deed
Description of Property Document: A sale deed acts as the main legal property document for evidencing sale and transfer of ownership of property in favor of the buyer, from the seller. Further, it also acts as the main property document for further sale by the buyer as it establishes his proof of ownership on the property.
Normally sale deed is executed after execution of sale agreement. Sale deed confirm that terms and conditions detailed in the sale agreement as agreed upon between the buyer and the seller are complied. It is mandatory to register the Sale Deed in Sub Registrar office in whose jurisdiction property is located. It is mandatory to register sale deed within 4 months from the date of execution else you need to pay penalty or it stands invalid.
Why it is required: To establish the ownership of seller on title of property
Mandatory: Yes. All previous Sale Deeds are required in original
Required in Original: Yes
Required For: Property Purchase + Home Loan
2. RTC Extracts
Description of Property Document: R.T.C is issued by the Village Accountant. It contains details of the extent of land in a survey number or a sub-survey number, the extent of kharab land therein, the names of the present and previous owners, their respective holdings and names of the tenants. It also include details like the kind of soil/crop, any mortgages, charges made on the properties contained therein, the status of land (whether Inam land or not), the conversion order number, date in case any property converted therein from agricultural to non-agricultural use, the references to mutation and inheritance certificates where there is any change in ownership etc.
Why it is required: To establish the Title of Land, if the property is located on converted land e.g. converted from agricultural to non-agricultural use
Mandatory: No
Required in Original: No
Required For: Property Purchase
3. Katha Certificate and Extracts
Description of Property Document: Khata means an account and Khata is an account of a person who has property in the city. There are two types of Khata: Khata Certificate and Khata Extract. In different states it is known by different names. It is basically an entry in record of local municipal committee and indirectly confirms that apartment is constructed as per approved plan.
Khata certificate is required for two reasons: For registration of a new property and for transfer of any property. Khata can be obtained from the Assistant Revenue officer (of the respective area). This certificate is must have for any property owner.
Khata Certificate is obtained for any new registration after paying the tax. Khata certificate is issued stating that a particular property No ‘N” is in the name of person X. This certificate is required to apply for water connection, electricity connection, trade license and building license. The Khata certificate is given only to the owner of the property or to his family members. No one else can take it on his behalf.
Khata Extract is seeking details from the assessment register. The extract is required to get trade license, or to buy a particular property. It is an extract from the assessment register about any particular property. It has the details of the property in a particular format with the name, size of the property, use of the property (commercial purpose, residential), annual value, when assessed last. An extract is the only way to get these details of any property.
Why it is required: For transfer of property
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
4. Mutation Register Extracts
Description of Property Document: Mutation Extract issued by the Village Accountant or Tahsildar contains the extract from the mutation register or inheritance certificate with details of previous owner, the present owner, the mode of acquisition of the property, the total extent of the property and the order stating that the Khatha of the property may be transferred to the name of the present owner.
Why it is required: To establish the Title of Land if the property is located on converted land e.g. converted from agricultural to non-agricultural use
Mandatory: No
Required in Original: No
Required For: Property Purchase
5. Joint Development Agreement
Description of Property Document: An individual landowner and a builder may enter into a JDA. The key feature of a JDA is that the landowner will contribute land and the builder will undertake development activity on it. Depending upon the land price, the joint development ratio is decided among the parties. In most of the cases, the builder will agree to allot X no of flats to the landowner and there is no exchange of money between landowner & builder. In consideration of this, the landowner will part with his share of land in favor of the builder or his nominee. He also allow the builder to construct apartment on his land and sell the agreed number of flats.
Why it is required: To establish whether original title of property rests with the Builder or with Landowner
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
6. General Power of Attorney
Description of Property Document: A “power of attorney” is a legal instrument whereby one person gives another person the authority to act on his or her behalf as his legal representative and to make lawful binding legal and financial decisions on his behalf including Sale or Purchase of Property on Buyer or Seller’s behalf.
Why it is required: To establish whether the previous Sale or Purchase was carried out by authorized person on Seller or Buyers behalf
Mandatory: Yes (If any of previous Sale/Purchase were executed through GPA)
Required in Original: Yes
Required For: Property Purchase + Home Loan
7. Building plan sanctioned by the Statutory Authority
Description of Property Document: The building plan approval process relates to the issue of permission for the construction of buildings based on specific set of rules and regulations.
Why it is required: To establish whether the property is authorized or unauthorized
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
8. NOC from Electricity Deptt/Pollution Control Board/Water Works/ Air Port Authority
Description of Property Document: Before starting the construction, builder requires NOC from all key Govt Departments. In some states NOC from at least 19 departments are required ranging from Pollution Control Board to Fire & Safety etc. For example If builder does not get NOC from Electricity Deptt then in all probability, buyer will not get electricity connection thus 100% dependency on generators. It will increase maintenance bill drastically.
Why it is required: To ensure Govt approvals are in place
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
9. Supplementary agreement / Ratification Deed (if any)
Description of Property Document: Supplementary agreement captures any extension, change or modification in certain clauses of Principal Agreement. Many a times changes are required in principal agreement and only way to execute the same is through Supplementary agreement. Just check whether any supplementary agreement is executed against Principal agreement.
Why it is required: To avoid any future shock on modified clauses which you might not be aware of & is not included in property documents.
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
10. Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.
Description of Property Document: While availing Bank Loan to buy a property, Builder/Housing Society issues an Allotment Letter to the buyer which contain details like description of the said property being sold/bought by the two parties. It also mentions the amount of money which buyer has paid to the builder/housing society so that remaining amount can be financed by the bank.
On the basis of this Allotment Letter, banks finance the balance amount.
As such the Allotment Letter also gives all the pertinent details of the Property being bought/sold and also detailed specifications of the Project.
Agreement of Sale is documented on a Stamp Paper whereas Allotment Letter is issued on Letter Head of concerned authority.
Allotment letter is only issued to 1st owner by builder and subsequent owners can demand copy of original allotment letter from previous owner
Why it is required: For Description of Property & Project specification by Builder or Housing Society
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
11. Sale Agreement between Builder and 1st Owner
Description of Property Document: It is very imp property document. The Sale Agreement must contain the liability of the Promoter/Builder to construct the building according to the plans and specifications approved by the local authority. It should also contain tentative possession date, price to be paid by the purchaser and the intervals at which the installments towards the full payment are to be made specifying the stage of construction. It also contain details like the precise nature of the body to be constituted of the persons who would take the flats i.e. association, details regarding the common areas and facilities. It specify the percentage of undivided interest in the common areas and facilities pertaining to the apartment agreed to be sold & a statement of the use for which the apartment is intended.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
12. Construction Agreement between Builder & 1st Owner
Description of Property Document: The construction agreement is another imp property document. It is essentially a works contract. In other words, it’s an agreement in writing for the execution of the work relating to the construction of the apartment and it also involves the transfer or sale of the goods involved in the execution of the contract. The nature of this contract is such that a person undertakes to execute work by incorporating various items, things and goods in such work. When completed, these items along with the executed work are owned by the person for whom the work has been executed.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
13. Copy of possession letter from the builder
Description of Property Document: It ensures that possession of the said building is being delivered to the purchaser on the effective date specified in the letter.
Why it is required: As mentioned in Description
Mandatory: Yes (In case of 1st Purchase i.e. from Builder)
Required in Original: Yes
Required For: Property Purchase + Home Loan
14. Payment receipts paid towards the builder
Description of Property Document: Don’t forget to collect original Payment receipts from builder. In case of resale, you can collect payment receipts issued by builder to 1st owner.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan (In case of 1st Purchase i.e. from Builder)
15. If any loan on the property (Current or past) / Original Property Documents with Bank
Description of Property Document:
a. List of original property documents with sellers Home Loan provider.
b. Closure letter with penalty (if any).
c. If the loan is closed then copy of closure letter / NOC issued by the concerned bank.
Why it is required: To ascertain that property is not mortgaged
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
16. Sale agreement with the Seller
Description of Property Document: Sale agreement is executed between the parties for dealing with the property. Sale Agreement creates a right to obtain a sale deed mentioning the property. Normally it fixes a time for completion, payment of earnest money or part payment of purchase consideration. Generally it’s a property document that precedes a sale deed and in such cases does not require registration. Sale Agreement will not confer any charge or right on the property. However in some states the sale agreement is registered and will act as a sale deed. For Home Loan purpose, it is mandatory to pay stamp duty equal to 0.10% of Sale Agreement value.
Why it is required: To fix terms and conditions for sale
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
17. Latest Tax Paid Receipt till Date of Registration (Property Tax/Municipal Tax etc)
Description of Property Document: It shows property details i.e. area, owners name & other imp details related to property. For income tax purposes in India, property is considered as a source of income and hence, tax is levied on that. Property usually mean real estate including any building, flat, shop etc. as well as the land appurtenant to the building. Under the Income Tax Act, incomes from the properties are regarded as one of the heads of income. The amount of tax is calculated on the value of the property being taxed. Local municipality authority that levies property tax for the maintenance of basic civic services in the city. Unlike UK where the occupier is liable to pay the property tax, it is the liability of the property owner to pay the property tax India to the concerned municipalities.
Why it is required: As mentioned in description
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
18. EC up to date for latest 13 years or from the date of registration till date
Description of Property Document: One of the most crucial property document. You can get Encumbrance Certificate from the sub registrar’s office. This office is directly under control of the Inspector of Registration of Properties, operated by the state government. The certificate shows that in a given period of time from when the property was bought/sold has there been any transaction or mortgaging. Buyers/sellers ask for this certificate when a new transfer (sale) is taking place, so that the buyer knows detail of all property transactions till date.
Depending on type of transaction, the certificate is issued in two different forms. Form 15, will have details of transactions during the period of registration in the name of the owner. A person will get a ‘nil encumbrance certificate when no transaction has taken place. this certificate would appear on Form 16.
The encumbrance certificate confirm that the property is still in the name of the person who is selling it.
Why it is required: To establish ownership of seller on the title of the property
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
19. Demand Letter from the vendor before disbursement
Description of Property Document: Demand letter is issued by builder to 1st owner, demanding payment due as per schedule agreed between builder & 1st owner.
Why it is required: As mentioned in description
Mandatory: Yes (For 1st Purchase)
Required in Original: Yes
Required For: Property Purchase + Home Loan
20. Own contribution receipt along with the bank statement
Description of Property Document: It is required by the institution i.e. bank or HFC which is providing loan for the property to ascertain that buyer has pooled & paid his own contribution to the seller.
Why it is required: For availing Home Loan it is mandatory for purchaser to contribute 20% of Purchase Value from his own sources and bank only approve loan upto 80 % of the purchase value
Mandatory: Yes
Required in Original: No
Required For: Home Loan
21. NOC from the Society/Building association.
Description of Property Document: An upto-date no objection certificate from the apartment’s owners association. It should clearly mention that Association does not have any objection on ownership transfer
Why it is required: To avoid any future objection by apartment association
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
22. No-due certificate from the building association.
An upto-date no dues certificate from the apartments owners association is required.
Further a certificate from the Association that no charge of any Bank or financial institution is recorded with them with respect to the apartment.
Yet another certificate from the Apartment Owners Association that they are custodians of all the Original documents and approvals of the entire property is a MUST.
Why it is required: To ensure owner has cleared all the dues & association is custodian of all original documents
Mandatory: Yes
Required in Original: Yes
Required For: Property Purchase + Home Loan
23. Approved plan of construction/extension & license for construction.
Description of Property Document: Before starting the construction, Builder obtain approval from local development authority for construction.
Why it is required: To ensure building has approval in place for construction
Mandatory: Yes (For 1st purchase from builder)
Required in Original: No
Required For: Property Purchase + Home Loan
24. Detailed cost estimate/valuation report from Chartered Engineer/Architect (if applicable)
Description of Property Document: Before approving loan, Bank carry out property valuation e.g. if you have applied for loan of 80% for property worth 60 Lacs & valuation report of bank estimate property value as 50 Lac then bank will only fund 80% of 50 Lac.
Why it is required: To fix loan eligibility based on property valuation
Mandatory: No (Normally its bank’s internal document)
Required in Original: No
Required For: Home Loan
25. Conversion order/Betterment Charges paid receipt.
Description of Property Document: Generally the land pockets available are agricultural in nature, as the major occupation is agriculture and the Government has taken various measures to secure & preserve it. The general use of all such lands is agriculture and if it has to be used for any other purpose other then agriculture, the property owner must obtain legal permission from the competent authority by following defined procedures.
Conversion is a legal process by which the property owner changes the use of the land from agriculture to non agriculture purpose. It is also called CHANGE OF LAND USE / DC Certificate. The legal sanction/ conversion/ order/grant/permission is necessary to use the land for any other purpose
Why it is required: For converted lands
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan
26. Sanctioned Layout Approval plan
Description of Property Document: The layout plan should be approved by the local development authority. In the absence of this you could face Khata transfer and plan sanction problems. The development authority has a right to demolish the apartment and restore the land to status quo ante if layout approval plan is not in place. The title of the site itself can be fairly safe (if property documents are clear) but the development/construction activity can be unauthorized.
Why it is required: As mentioned in Description
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan
27. Auction Sale confirmation letter from Local Development Authority
Description of Property Document: If any site/land is purchased by builder or by independent house owner by ways of Auction by Local development authority then this letter is definitely required
Why it is required: As mentioned in Description
Mandatory: Yes (As applicable)
Required in Original: No
Required For: Property Purchase + Home Loan
28. Release deed (If applicable)
Description of Property Document: Release Deed is executed to Release rights whereby a person renounces a claim upon other person or property. If you are purchasing a property, which might have been inherited by seller or was part of settlement between legal heirs of original owner then definitely you will come across release deed. It is very imp property document.
Why it is required: As mentioned in Description
Mandatory: Yes (As applicable)
Required in Original: Yes
Required For: Property Purchase
29. Completion Certificate
Description of Property Document: This certificate is issued by Municipal Authorities showing whether the building complies with the rules related to permissible building height, distance from road etc. whether it is built according to approved plan and is ready for habitation.
Why it is required: To ensure building is constructed as per approved plan
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan (Mandatory for 1st Purchase)
30. Occupancy Certificate
Description of Property Document: The occupancy certificate is issued after construction is completed. Once the builder applies for the certificate, an inspection is done again to confirm if the construction is completed as per sanctioned plan. This certificate is mandatory for any builder before he allows people to take possession of the property.
Why it is required: To ensure flat is ready for occupancy and construction is completed as per sanctioned plan
Mandatory: Yes
Required in Original: No
Required For: Property Purchase + Home Loan (Mandatory for 1st Purchase)
31. Loan/Charge/Mortgage by the Builder:
Description of Property Document: If the Builder or the Land Owner has created a charge in favour of any Bank or Financial Institution, a NO OBJECTION LETTER from the institution is required. NO OBJECTION letter should clearly mention the property details, the name of the borrower, the borrower’s account number, the apartment, floor, area, car park etc. and shall be addressed to the Purchaser. The original letter should be in the safe custody of the Purchaser. If in “No Objection letter” if it is mentioned that all the payments by the Purchaser shall be through the financial institution, the same should be complied.
If the Builder states that they have not availed any loan or have not created any charge on the property, the same shall be stated in definite words in the agreement/s to be entered into with the Developer. There should be clause that “all original documents, deeds and approvals are held by the Developer in their safe custody and that the Developer shall continue to hold the same in their safe custody in trust for all the purchasers of apartments, and shall never part with the Originals and that as soon as the Association of Apartment Owners is formed. All the Original documents, Deeds and approvals will be handed over to the Association.” This shall be over and above a declaration in the agreement/s by the Land owner and the Developer that the property is free from all encumbrances.
Why it is required: To ascertain property is not mortgaged by the Builder
Mandatory: Yes
Required in Original: No
Required For: Property Purchase
32. DEED OF DECLARATION
Description of Property Document: A copy of the Deed of Declaration of the Apartment Owners Association and the Bye Laws annexed to the same can obtained from association office. It should confirms to the sale deed/title deed. It is also advisable to check any additional burden/costs in the form of transfer fee payable by the Transferee.
Why it is required: To establish transfer of ownership to original buyer by builder
Mandatory: No
Required in Original: No
Required For: Property Purchase
33. Latest Electricity Bill
Description of Property Document: Always insist on Latest Electricity Bill and Payment receipt from previous owner as Electricity bill is the another solid proof to establish the ownership of current owner.
Why it is required: To establish ownership
Mandatory: No
Required in Original: Yes
Required For: Property Purchase
Hope you found this list of property documents useful. You can share your comments / feedback / query through following comments section. You can also share this post with your friends and family members through following social media icons.
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Very educative.
This is very helpful Nitin.
Hi,
I am purchase Flat in
Ahmedabad in Feb-2014 by Axis Bank home Loan. I get the property document as
Property Card(Akarni Patrak), Property Tax Bill on my name, also I am transfer
my Electricity bill on my Name.
and our Society register
as Dev 181 Co-Operative Housing Service Society Ltd.
as per my knowledge
pending Document is
1. 7/12 Certificate of my
Flat ,
2. Society Share
Certificate
Now my concern is there
any other document
pending after take Possessions
what is the process to
update owner name in 7/12
what is EC (encumbrance
certificate) and who will issue.
In Society Registration
name it should be as Co-Operative Housing Service Society Ltd. or Co-Operative
Housing Society Ltd.
Who will issue Society
share certificate.
1. As i have not seen your documents therefore cannot what else is pending
2. 7/12 certificate is issued for land. I am not sure why you need it
3. EC (Encumbrance Certificate) will be issued by the sub-registrar office
4. I could not understand query related to society registration
5. Society share certificate will be issued by the society only. You may write to secretary of the society for same.
Hi nitin, i have purchased resell flat wherein it includes 5 chain agreements. All the agreements are available except first agreement with builder. We have receipt of that agreement and searching the same with registrar from last 1 month but unable to get the agreement. My bank is not giving disbursement without the pending documents.
Do you have any solution to retrieve the missing document?
Seller can declare it as LOST. Please follow relevant steps in following link
https://www.nitinbhatia.in/home-loan/original-property-documents-lost-by-bank/
Hi Nithin,
I have Finalized a property from Land owner share for 60lakhs and i am checking with SBI for HL, I have got 2 agreements the construction agreement has 40l and sale agrement has 10lakhs mentioned . Bank is asking to get Franking done for 0.1 % on sale aggrement and the Franking person is saying the overall amount needs to be mentioned in sale agreement to get franking done as its currently only 10lakhs and the agreement stamp paper is of 1.2k whihc is already 0.1% of the value. I checked with the Land owner and they say thhis is how they do the agreement . so can you advice wats wrong here and how can we get this sorted out ..
Regards
Brian
Sale Agreement is executed on UDS value of the property that is normally guidance value. A franking person should not be concerned about the value mentioned in the sale agreement. As you are executing a sale agreement of 10 lakh therefore 10 lakh will be mentioned in the agreement. You can execute a sale agreement of any amount and frank it for value of your choice. You may frank it from some other vendor.
I am purchasing a flat in a big housing project named as Wave City NH-24, Ghaziabad. To get loan from my EPF I need Non-encumbrance certificate. I have contacted the developer for this who told me that they will obtain it for me. Can this certificate be obtained by the company(Developer) on my behalf from the registrar or only I have to apply myself. I have only allotted unit no. and sector no. of the approved project as the details of the property(Flat). Are these details sufficient for seeking non-encumbrance certificate? If not, what details should I ask for from the developer of the project?
Encumbrance Certificate, you can also pull out if you have property details. Here Encumbrance Certificate is of the land on which builder is constructing the flats.
Details required from builder vary from project to project. Please check my posts in Real Estate category for general guidelines.
Hey. What is the legal enforcebality of this information? I mean can I find this in a case or a law?
It is general information. You may check with local lawyer.
hi Bhatia sir,
can bank mortgage property in the absence of owner with owner giving any power of attorney in favour of bank???? in case he is unavailable…..
I am assuming owner has availed home loan. In this case, property is already mortgaged with the bank.
Hi Nitin,
First of all thank you so much for all of your useful advices. I have applied for a home loan from ICICI bank Virar branch Mumbai and got a sanction of Rs.22 lacs. My property agreement value is 21.5 lacs. Before giving me the sanction letter ICICI people did legal verification and Technical as well. After doing that they told me that the market value came as per their valuer is 28 lacs. Now ICICI loan agent is saying that bank will give me 100% of the agreement value since MV is bigger than agreement value. It sound good to me. But want to is it feasible? Is there any chance that at the time of disbursement they will change the terms? Also owner needs the check same day of registration. But ICICI is saying it will take at least 7 days for the disbursement check to come. Please advise.
It is not possible. You have to pool 20% of property value + Stamp Duty + Registration charges from your pocket.
Hi Nitin,
We have shortlisted a flat in Bangalore which is of landowners share. Documents related to flat allocation to owners and a partition deed among land owners is present. Will this partition deed empower the landowner to register the property to us? Land katha is A and has details of landowners. Bifurcation of khata and transfer to individual flats is yet to be done by builder. Is it OK to go ahead with this flat and get it registered to us by the landowner?
Kindly suggest.
Regards,
Srinivas
I can answer this query only after going through the documents. For general suggestions, you can check following post.
https://www.nitinbhatia.in/real-estate/property-landowners-share/
Hi Nitin,
Please acknowledge my thanks to you for this post. Its a very good content for the beginners like me who first time property purchaser.
For my case, I am finalised a FLat and purchasing from Land lord. While gone for the HOMELOAN, LIC HFL seeks the original verification and requested to show the Original copy of Joint Development agreement . Fact is Original copy is MISSING.
Will it be issue for Bank to offer the HL or will it be any issue for me if i want to sale my flat later some year ?
I am very much worried and could you please guide me or recommend on the general aspects about it ?
Thanks
Regards
Mei
I am assuming your property is independent house/villa. In this case, original JDA is required else you can request the owner to declare it as LOST by following legal procedure.
Hello Sir…The builder has provided bribe while procuring noc from municipality and deputy commissioner’s office which is required for registration of sale deed.Now he is demanding this illegal expenses from the flat owners.Is he doing the right thing?
He cannot demand.
Thank You so much for this list Mr.Bhatia. It is indeed v useful. We have recently built flats under a JDA with a builder. The project was completed last month. Could you tell us:
1.What documentation should we ensure from the builder at this point, before we part ways, in order to enable us sell the flat if required in the future? We do have the original property documents , the JDA and copies of plan approvals.
2.There is no separate construction agreement with the builder. Would that be required if we were to sell the flat in the future?
1. Seems partition deed is missing.
2. Yes
Hi Nitinji,
Wanted to know if banks also give home loans without proper noc’c from various organisations.
It depends. If the pending NOC is non critical then bank may ignore the same like NOC from BSNL in some areas.
Hi Nitinji,
Do all banks follow the same legal procedures for approving loans or sbi loans are legally much safer than other banks? Are there any fixed guidelines by rbi regarding it or it depends on bank to bank.
SBI is relatively safer due to stringent legal process. Legally bank does not take any responsibility for the title of the property. A property is like a collateral against loan. There are NO Guidelines issued by RBI in this regard.
Hi Nitin,
I am considering purchase of a villa from builder in bangalore, sarjapura. We see that there is a kharab (nala) in the middle of the layout (150 feet from my villa) , there is a park through which this nala passes through…the main approach road goes over a bridge over this nala. I also see this nala have no water flow as such..infact it is only withn the bounds of the layout..does not exist outside of it from what i can observed..is this normal ?
Some parts of the layout are fenced with 10 feet iron slabs as opposed to compound – the iron slabs usually outline private properties – developer claims they are in talks to purchase the other land as well. is this fine ?
the layout seems to be approved by BMRDA/ Anekal planning authority and also has been approved by SBI and Axis on their website.
I can share more details on a private channel.
Thank you for providing a great blog to clarify this complicated issues.
-Karthik
You may check approved layout plan for existence of this nala. Existing of private property in layout may pose problem in future.
Hi, we r entering into development agreement with Developer. He is insisting that the Title Deed in Original should be kept with him.
Please advice.
It is not required. Joint Development Agreement is legally binding. To safeguard builders interest, you can register the same. I will not suggest to deposit original title deed with the builder.
Thanks Nitin for previous Reply…
In a village survey map i see one unnumbered block – does this represent government land..can it be in the middle of nowhere ? it is surrounded by valid survey numbers.
You may clarify from panchayat office. It is difficult to comment. It seems survey no was missed for this block in a survey map.
Hi Mr. Nitin,
Me and my husband have finalised on buying a property in Bangalore and have got some documents but the RTC shows that the title name is Goverment (Sarkari). Our lawyer has advised us to not go ahead with buying this particular property. Please could you advise what would be your opinion ? Thanks….Zarina
I will concur with your lawyer. You should not go ahead.
I have purchased a house and paid 30% of the amount of that property however my seller has lost his documents in auto and has given us true certified copies of the paper. No bank is offering us loan on xerox papers. what should we do now? He has given FIR and notice in newspaper also but please advice what should be our next step.
You have not mentioned whether he ever showed original documents to you. If you never saw original documents then there is a possibility that he lied to you about the same means that he never had original documents.
As during the course of transaction, the original documents are lost and it devalues the property therefore you may apply for cancellation of agreement or on the basis of misrepresentation of facts as i explained in 1st para. You may ask for 100% refund.
Thanks Nitin for putting out this list and helping novice buyers, like myself. One needs a PhD to understand this overly complicated process. You are a generous person and may you be blessed in every way.
Hi nitin, we are contemplating to buy a resale flat on collector’s land at model colony, Andheri west. The say 15 yrs domicile is required for registering is it true? If we have only around 12yrs are there any ways to handle it? And why is the price of flats in collectors land considerably less priced than the market value? Any pros n cons in buying them? Plz help
Domicile of 15 years is required. The price a such property is less because most of these properties are disputed due to GR (Government Resolution) – 2007. These flats are for family with income less than Rs 20,000 per month. Moreover, It is mandatory for such societies to reserve 20% of flats for SC/ST but it was not done. I will not suggest you to go ahead.
Hi Nitin, I am planning to purchase a Villa. Project is an on-going one. Is it mandatory to request for Commencement certificate ? as the builder say CC is applicable only for Apartments/Flats. Is that true ?
Thanks.
The rules vary from state to state. You may check with local development authority regarding the same.
Hi Nitin,
I am in the process of selling my flat in Navi Mumbai, and the :Agreement for Sale – Part payment”, has been sent to me by the purchasers(two). I request your clarification on the following points:
1.The purchaser are two persons with the same Surname and middle name , hence bothers, any special clause I have to take care before sign off.
2.Any Termination clause I need to include.
3.Should I include – After the sign of the “Agreement for Sale” the buyer to complete the final payment within 3 months.
1. For you they are 2 diff buyers. You should mention their father name, age, address and most importantly PAN in your agreement.
2. Yes
3. Yes. The period can be mutually decided with buyers.
Can we add a buyer a week after registration of flat sale deed??!!
Wats the procedure??
Now it is not feasible as the property is already registered.
Hi Nitin,
We have shortlisted a property in kolkata. We have seen all the documents are in place, except CC. Since developer has deviate from original plan, he is not interested to get CC. As it will cost him some money to get that due to deviation of plan. My question is, can I go ahead with the property? Does there going to be any complication if I want to sell this property?
You have not mentioned whether OC is available or not.
Hi Nitin,
I have identified property in Nagpur, Maharashtra. It is independent house. I would like to know what are the different property documents are required for home loan.
The documentation requirement vary from case to case basis. The general list of documents i have shared in my post. You may consult a local lawyer for your specific requirement.
I had booked a flat in a Co-Op Housing Society in Pune. The
project was executed – by 1st registering a Co-Op Housing Society with some
members and then the Society bought the land for the project. Once the Land is
bought (after the completion of the necessary legal procedure), the Society has
built the Flats on the land.
For my Flat, I have paid all the payment contributions on my
own and DID NOT take any Home Loan. For those who availed the home loan, they
done a Notarized registration of the flat before taking the home loan.
So for my case the Society has ONLY given the two documents –
a) Society Share certificates
b) Flat Allocation Certificate mentioning the flat areas
details
So I did NOT get the Index II and the Society has mentioned
that there is NO need to do a registration (by paying the stamp duty) or Notary
for any Sale Deed as the land was in the Name of the society and its have given
the above 2 documents.
So I wanted to know, with Only the above 2 certificates –
1) Would I be the Legal Owner of my Flat in the
Society?
2) In furture, do you Foresee any issues with the Flat ownership or any disputes
3) Would there be any issues when I plan to sell my property in future (in terms of missing documents / Registration / Notary) ?
Kindly advise me.
Thanks,
Kumar
A cooperative society in Maharashtra is governed by Maharashtra Cooperative Societies Act. Under the act, the society share certificate is valid and legal transfer of the title of the property. A Notarized registration is as good as NO Registration. Only a registration in sub-registrar office by paying stamp duty and registration charges is the valid conveyance deed. Therefore, under Maharashtra Cooperative Societies Act, the property registration is NOT REQUIRED.
On the other hand, in Oct 2011 the supreme court of India passed a judgement that only registered conveyance deed or sale deed will be considered as a valid and legal mode of transfer of title of the property.
In my opinion, the ruling of Supreme Court of India supersedes all the judgments of lower courts, existing acts and laws therefore you should register the property in Sub Registrar Office by paying stamp duty and registration charges.
Dear Mr. Bhatia,
I hv bought a house in resale at sec 21 Kharghar, Navi Mumbai. I hv paid 20% margin money & sale agreement registration is through. I hv submitted the original to Bank & formalities are almost done. Bank is now asking for Society Tax paid receipt, which the Society is not paid, as is the case with most of the socities in Kharghar. The reason being there is dispute between CIDCO & Kharghar Gram Panchayat over Tax collection due to services provided.
Now under these circumstances, what is the remedy, as the funding is done by all Banks in Kharghar.
Kindly suggest.
Rgrds.,
Roy
You may give declaration to bank that you will provide Society Tax paid receipt to bank as and when it is available.
Thanks
Dear Mr. Nitin
Thanks for the exhaustive information provided by you.
Just planning to buy one open plot in nagarpalika area which was long back bought by group of persons and divided among themselves and name entered in 7/12 village form individually. Hence only one sale deed available against 21 plots and no other documents available. They haven’t formed any registered society or colony. Can you please help out as how should we proceed towards purchasing of this property. Thanks
The current owners should sign a partition deed and then they can sell individually.
Dear Mr,Nitin,
We have a shop in Mumbai on collector land and we are about to make sale for the same but we have lost the original documents and the buyer needs the original documents to make the deal happen.
Can you pleas help us with your valuable advice on the same.
Regards,
Amit
You may legally declare the documents as lost by you. Please follow the applicable steps as i mentioned in following post
https://www.nitinbhatia.in/home-loan/original-property-documents-lost-by-bank/
Dear Mr. Nitin,
My brother gifted me a land at the time of marriage 20 years ago and we got it registered 8 years back officially. We built a double store building in that plot. Now due to some family issues, he turned against to us and sent a notice saying his signature was forged in the registration document and he is not aware of that document at all and asking to vacate the place as it belongs to him. Please suggest us how we can react or proceed to this notice.
Thanks in advance
Just to check whether you signed conveyance/sale deed or Gift deed to register the property. Also at the time of marriage, has your brother signed any gift agreement in your favour or it was only oral commitment. Lastly, is this property inherited or acquired by your brother from own funds.
Hi Nitin,
I have short-listed one resale property(flat) in pune. As discussed with flat owner, he has all the documents with him like blueprints,OC except CC(completion certificate). but building has not got CC yet but soon builder will handover the society in next few months and will provide the same.
is is safe to go for this deal ?
the owner currently has LICHL loan, but i am planing to take home loan from SBI . so just need to know whether CC is mandatory while taking home loan for resale flat. will SBI sanction the loan without CC and on the basis of other documents?
OC is good to go provided it is not a conditional OC and your tower/floor no is included in the same. You need not worry on CC.
CC is mandatory. Document requirement vary from case to case basis. You can check with SBI whether they have approved this project or not. You can also check SBI approved projects online but normally list is not updated.
This is urgent, request you if possible to kindly reply at the earliest. I stay in housing board in Goa where we share common walls with our neighbours. My neighbour is planning to build a 3-storey building after demoolishing his house. I have informed him to build a seperate wall and not construct on our common wall and he has agreed to the same. However, he is now asking for an NOC from me which he states he needs to provide the municipality before starting his construction. I need your advice as to if i can go ahead and give this NOC, or would it create any problems for me in the future.
Thank You.
It depends on the content of NOC. I am not sure about the purpose of this NOC. You may ask for format of NOC.
Hi Nitin,
Thanks a lot.
Hi, nitin first of all thank you for all yours posts and answers, they are very informative and helpful for many persons like me. I have a query regarding GPA..Person ‘X’ had executed a GPA in favour of person ‘Y’ to sell a property of X, Is it compulsory for ‘Y’ to sign on the GPA in order to accept the GPA. Whether the GPA is not valid If ‘Y’ dont sign on GPA. Kindly answer, Thanks in advance
1. It depends whether person X is resident Indian or NRI.
2. Un-registered partition deed has NO legal validity in terms of title transfer.
Thanq very much sir, X and Y both are resident Indians and Y has not signed on the GPA executed by X, still Y had sold out the property(belongs to X) to some Z in 1963. Now I want to buy this property from legal heirs of Z who got inheritance through an un-registered partition deed. Shall I go for it? Whether I can get a Home loan for this property.
In my opinion, it is risky. As i have not seen documents therefore you can take an opinion from local property lawyer.
Dear Sir,
what are the property documents required to register a property in Maharashtra?
You need PAN and Govt Id proof of buyer and the Seller. A sub registrar may demand TDS certificate.
Hi Nitin, I have bought a resale flat, for Income tax purpose I need to show the Possession Certificate, but the certificate is in the name of the first owner. In this case what all documents are required to be submitted for IT Declaration, will submitting only the Possession certificate suffice?
Possession Certificate is issued to first owner from builder. For IT deduction, you need income tax certificate from your home loan provider.
Hi Nitin
I have purchased flat in (NOV 2015) Pimple Saudagar pune it was an ready possession flat. we have done sale agreement & apartment deed , do i need to do sale deed now..? they have mentioned share part in apartment deed, and covered details cleared in sale agreement & Deed of Apartment do i need to ask builder for sale deed now..?
Yes, in Maharashtra there is a process of double registration, first the sale agreement then sale deed.
Hi Nitin,
I am planning to sell my house at housing board and I am a salaried person. The buyers that I expect for my house are mostly self employed Muslims and who usually transect by cash. My concern is how can I go about this whole process. I am planning to relocate to another place, so would be taking some advance from the buyer and then would be looking for a house elsewhere. What are the things that I need to take care of and what is the legal procedure that I need to follow right from taking the advance to the final payment? Please guide so I can go about this legitimately.
Cash transactions exceeding Rs 20,000 are illegal. Please check my following post
https://www.nitinbhatia.in/real-estate/property-deal-cash-payment-black-money/
Hi Nitin
Thanks a ton, God bless you.
I am from pune, maharashtra. I want to purchase a land which is a r zone in municipality. How can i get a NA permission on it. What is a procedure and documents required. ?
You have not mentioned whether it is collector approved or not. Secondly, you want to convert it to commercial or residential.
It’s not a collector approved and i want to convert it into residential.
Personally i will not buy this property.
Hi Nitin,
I have bought a flat in RPS palms, Faridabad from 1st allotee. Now d builder is stating that we can shift to the flat as OC has been sanctioned by giving consent and paying final demand. But regarding offering of possession they say it will take more than5 months to as all d units in project have been sanctioned OC . Should I move in or wait for d offer of possession?
Regards
Mithun Sharma
OC cannot be issued till building is ready for possession. It seems builder will register property after 5 months therefore not offering possession. You need to check the reason for the same.
Hi Nitin.Its great of you to post such useful info.
I purchased a land in BANGALORE through a bank loan (all paid up) & now there is another claimant for the same land.
Therefore is Bank responsible for sanction of a loan on disputed property especially when the bank gives loan only after verifying documents through their legal team/department ???
There is NO Responsibility of Bank. Title clearance is the sole responsibility of a buyer as i shared in my posts. It is also mentioned in the home loan agreement.
Hi Nitin,
I had booked a 2BHK apartment in Pune on 29th July 2014 from a reputed builder . This project was supposed to have 5 buildings of 12 floors with 6 flats on each floor plus one commercial building. The total area of the project is around 5 acre.The booking was open only for 2 buildings. They had promised to give possession by July 2014 and said the agreement will be made by in 2-3 weeks. However agreement was done on 16th January 2013 only.
They didn’t give any copy of the agreement to read and got me sign on the agreement. the possession date was mentioned as March 2015. The commercial building (Shopping complex) was also changed to a residential building. I didn’t have any other option but to sign since the rates had already increased by Rs 400 psft by then.
The builder kept extending the possession date and saying the possession will be given in June 2016. However, he is not willing to give even this in writing. He says that the delay happened due to changes in environment clearance laws that came in force in year 2013, after project was started. When I inquired about amenities promised in the agreement, they said only 30-40% of amenities will be given at the time of possession. Rest will be given when the entire project is finished which may take at least 4-6 years.
When I inquired from sales posing as a buyer, they said the possession will be given in December 2016.
They are also changing the layout of the project and saying the remaining buildings will be of 19 floors.
I am thinking of filing a case in consumer/civil court. My queries are :
1. is there any time limit within which builder has to register the agreement after taking the initial booking amount?
2. I read that EC notification in Maharashtra was done in 2006. Is my builder lying about the EC status?
3. Can builder change the amenity space location, size of the buildings shown in the agreement/advertisement?
4. Can I legally refuse to take possession before all the amenities are provided?
1. There is no time limit until unless specified in the agreement.
2. You may clarify from builder
3. He can change provided he has revised approved layout from local town planning authority else it is not allowed and construction is illegal in case deviation is more than 5%.
4. Not exactly based on amenities. You can demand OC. If OC is not available then you can refuse possession.
Sir, I sorry to tell you this. We s a educated act most of the times so foolishly , that is why all these frauds are common. Look – you do not have even a copy of what you have signed. You do not know what they have wriiten in this. To day so many gadjects are available. With the help of even a chinease cell phone you could have recorded even his owrds, . Probably he woould have said I will not give copy, or why do you need a copy ? You should have immediately caautioned your self -why , or asked him to give avalid reason . Now you are at his mercy. He will say this is what you have agreed. Any way you ask him at least now – to give you a copy of the agreement, study in dtail, you can only ask for what you have signed. I am sorry for my words. But honestly even I was fooled by Nationalised banks when I had gone for a car loan. They had taken ~ 60 signtures – with out even filling up. Later I realised my blunder. From then on I am very carefull. I went for a carloan with ICCI bank who had tie up with hundai.They promise me a car loan on godd terms. I bluntly told them to give me a copy of the loan agreement ,I will take hoem read, then only I will sign. I had simply refused. Then as a compromise they gave me the copy to read it there it self , gave me time of 2 hours, I had taken a copy of it im my cell it self. got all my doubts cleared, I forced them some changes which were against me . Then signed it. Though i paid the loans promptly This was an eye opener. So I am once again sorry . We are all only educated fools. In money matter only papers will speak. Why you run to sign.
Thanks for sharing your experience. I hope readers of this blog will gain from it. Thanks again.
Thanks Nitin for the earnest response.Then why do banks charge for legal work they do to verify the
authenticity of documents ?
Only after this they clear the loan.
I understand your concern but a property only act as a collateral for the loan. In other words, Home Loan is like any other personal loan but since the value is high therefore bank take collateral/property as a security.
Thank you for all the guidance. Please tell me if share certificate is to be given at time of registration of sale; or it is not necessary?
Is share certificate absolutely necessary to be given to sub-registrar ,while registering deed.
For cooperative housing society YES.
I want to know in joint venture developer construct the building and the time of possession is land owner taken his land back or stay on property pls answer
Once land owner enter into an registered JDA, he lose control over the land and will be compensated as agreed between him and the builder. He cannot take back the land. If the JDA is not registered then anything is possible.
I have got the agreement of Sale (required for home loan) and possession letter from builder. I have asked for the sale Deed, he told me that its not required. Is it true. Could you please confirm
You have not mentioned whether agreement of sale is registered in sub registrar office or not.
yes, agreement of sale is registered in sub registrar office.
OK then it seems that sale agreement is technically sale deed only. You may check clauses related to transfer of title.
Hi Sir,
This is Ataulla Khan from Mumbai, I have taken a flat in Palghar in 2011, there is a home loan on this flat from ICICI which is very much active right and I am paying regular EMI, last month I came to know that the land on which our building is, was mortgage to SIDBI by builder and since the builder has defaulted in paying his emi, sidbi is auctioning the land. kindly advice will our flat go into auction or is there any other consequences in future. I have got the possession of my flat in Feb 2013.
Thanks
Its a fraud from builder. You have not mentioned whether builder informed you regrading mortgage at the time of purchase or not.
Thanks a lot Sir for your reply, he has not mentioned any where in the agreement and neither it was informed to us verbally, ICICI bank has given loan to me and many others. Pls suggest should I approach the bank or take legal action against this builder.
Bank has no role to play. As i mentioned it is financial fraud, you may consult a lawyer for next steps.
Thanks Sir
sorry sir, Banks do charge a processing fees , legal fees. What did they do ? Suppose if i tell them I want to buy VT station they will give loan blindly ?
The problem is that the system is not a fool proof system. Banks do check the property title but don’t take any responsibility of property title. A home loan is as good as personal loan only and home act as a collateral with the bank against the loan.
you immediately infor this to your ICICI bank & all other flat owners. Make a writ petition in court, involving the land owner.
You can aslo serve a legal noticee that they have failed to notice these flaws , & you are not liable for the consequences.
Get an injunction , & notice served on SIDBI.
Respected Sir
I want to buy a 2bhk flat in Bangalore. Recently I visited so many properties in south Bangalore. Each builders has their own views regarding OC, CC, EC, TC, KHATA Certificates. Please guide me regarding the same.
Thanks in advance
Regards
Lavisha
Sorry i could not understand. There is only single view as per law, rules and regulations. Builders twist the facts as per their own convenience.
@lavishaahuja:disqus:
Buying a Flat in Bangalore ?
A Khata Property
BBMP Approved (No deviation from approved plan)
Commencement Certificate
Occupancy Certificate (BBMP Issued) also known as OC
BWSSB NOC
BESCOM NOC
FIRE Department NOC
Perfect Title – (one who is selling you is the owner of the property)
No loans/pending encumbrances on property
These things are the major aspects in Bangalore. If you are buying a property located closer to a lake, be doubly sure that your property is not built on a lake bed.
if a builder is offering OC (occupancy certificate) still make sure that he has rain water harvesting, sewage treatment plant and at least 13 meters of set back all the 4 sides of the property. or else possibility is that BBMP may refuse to issue OC later on. (your property is just like any illegal building, without an OC, don’t go by builders who say “chalta hein” !!)
Hello Sir, I have purchased an under construction house in india for which the initial agreement and the land registration is completed and the house building is in progress.My question is that the builder has given us xerox copy of the registration only ,saying that they will need it and will be giving back to us during handover. Also till now we have already paid around 70% of the installment for which they havnt provided us any receipts of the payment, they say we don’t give receipts. Are these reasons acceptable? Is it normal? Iam the first time home buyer,don’t have much knowledge of it.Please suggest. Thanks !
It is not right way. The payment receipts are must and you should demand original sale deed.
No problem . You give him a legal notice to return the origional documents , also mentioning the amounts you had paid. Mean time with the details of the xerox copy apply for a copy of the document with the registrar office ,. For a certain fee you will get the certified copy of the registered document, which is as good as origional.
You should not have given the origional to him. Now also apply for a ENCUMBERANCE CERTIFICATE witht he registrar office. It is also possible he maight have pledged these documents in a bank & taken a loan. Do not panic – this is possible.
Hi I planned to buy a plot near yelahanka in bangalore . but it is BBMP B khata . My question is what all are documents required . I have below listed document
Tax paying reciept
Agreement of previous land lord
I will not suggest to buy B Khata property. For general list of documents, please check following post
https://www.nitinbhatia.in/real-estate/10-points-consider-buy-land/