The Ultimate Property Checklist: Legal Must-Knows Before Buying

Of all the milestones in one’s life, buying a property holds a special place. However, the legal due diligence and financial liabilities can be daunting irrespective of whether you are a veteran investor or a first-time buyer. It is important to stay informed in this changing and booming real estate market. 

No one wants to find out a year or 10 years later that the property you bought with your hard-earned money has unresolved ownership disputes or unpaid dues. And, this is exactly why legal due diligence matters. Checking and understanding more about the documents required for buying a property, and making sure they are intact could save you from tomorrow’s troubles.

Check out the property checklist below for ultimate guidance. We have broken down the essential legal steps and documents you must check and ensure before making that final sign!

Essential Legal Documents And Legal Considerations

One of the foremost things to do is to verify the seller’s identity. You can use documents like Aadhaar, PAN, and Passport for this purpose. Once you are done with it, here are the documents to mark the legal checklist for property purchase.

1. Sale Deed: Sale Deed is the proof of ownership transfer. It is registered at the sub-registrar’s office and is deemed invalid otherwise. It is an essential document for applying for home loans and during resale.
2. Title Deed: This certificate ensures the seller’s ownership of the property. A title deed without any complications indicates that the property can be transferred without any legal complications.  
3. Property Tax Receipts: The receipts ensure that the previous owner has cleared all the property taxes. If you are looking for a flat for sale in Bangalore, it is important to make sure there are no outstanding dues on property taxes.
4. Building Approval Plan: The building must adhere to certain laws and regulations and that’s why it is crucial to ensure that the builders have obtained approval for the building plan from local authorities. To protect yourself from demolitions or penalties in the future, you are always advised to go with trusted real estate builders in Bangalore like Sterling Developers.
5. Khata Certificate: To pay property taxes and get utility connections like electricity or water in apartments in Bellandur or anywhere in Bangalore, you need a Khata certificate. It certifies that the property complies with local regulations and is registered with municipal authorities.
6. Occupancy Certificate: Occupancy Certificate (OC) verifies that a property is safe for occupancy.
7. Encumbrance Certificate: Encumbrance Certificate (EC) ensures that the property is free from financial or legal liabilities. It is important to get an EC before buying a property.
8. Completion Certificate: Completion Certificate (CC) confirms the building’s compliance with the fulfilment of all construction-related dealings.
9. Power of Attorney: This is important if you are buying a property through a third party. Make sure you have a registered Power of Attorney that clearly authorises them to sell the property on the owner’s behalf.
10. No Objection Certificate (NOC): It is not legal to sell a property without an NOC. As a buyer, you must check all necessary NOCs such as fire safety, environmental clearance, water supply, etc. are in place, without fail.

Due Diligence And Compliance

It is also crucial to look into the sale and purchase agreement and ensure that the terms and conditions of the agreement are agreed upon by both parties. In case the property is built upon agricultural land, this land should be converted for residential or commercial use through a Land Use Conversion Certificate. 

Make sure these certificates are intact to avoid legal complications in the future.

For people buying apartments in Bellandur or generally any flat for sale in Bangalore, it is essential to check whether the property or land is BIAPPA/BDA-approved. In fact, any construction is restricted until this approval is in place and it is one of the first approvals to be attained. For properties falling under RERA, i.e., Real Estate Regulation and Development Act, it is important to verify whether both the project and developer are registered with RERA authorities. Properties that comply with the RERA Act ensure transparency in timelines, pricing, and quality.

Now, keeping aside the legal factor, it is very important to do a physical survey and inspection before buying a property. Beyond paperwork, this could confirm whether the seller is lying about anything like boundaries, access routes, approved plans, etc.

You could also do a legal search report. This report is prepared by an experienced lawyer. It offers an overview of all legal aspects related to the property, including ownership history, encumbrances, and pending litigations.

If you are going for a home loan, the bank will conduct a legal verification of the property. In fact, bank-approved properties are generally more secure, as they must meet strict legal guidelines. So, check if the property is pre-approved by any reputed banks. This simplifies the loan application process and serves as added assurance of the property’s legal authenticity.

Conclusion

Buying a property for yourself, your loved one, or for investment is not just about aesthetics or location. It is also about a lot of other factors including long-term security. This is exactly why it is important to follow this legal checklist. From title deeds to RERA approvals and tax clearances, this property checklist ensures a stress-free property purchase experience. After all, no one wants a dream home to turn into a legal nightmare just because you missed certain essential pointers.

For those looking for properties in 2024, staying updated on market regulations is key to avoiding pitfalls. At Sterling Developers, we make this process effortless by offering legally compliant and meticulously vetted homes to our buyers. Visit our website to explore stunning properties designed for your modern lifestyle. 

FAQs

1. What is the significance of a sale deed in property transactions?
   A sale deed is a legal agreement that assures the transfer of property ownership from the seller to the buyer.
2. How can I verify the authenticity of a title deed?
   The best way to ensure the authenticity of a title deed is to conduct a search through public records and ensure it is registered with the relevant authorities. You could also consult a real estate lawyer for the same.
3. Why is an encumbrance certificate necessary before buying a property?
   It is important to have an encumbrance certificate as it confirms that the property is free from legal or financial liabilities, such as mortgages or unpaid dues. 
4. What happens if a property lacks an occupancy certificate?
   A property can be considered illegal and it would be hard to obtain utility connections like water and electricity. Not having one can also lead to legal penalties or eviction by local authorities in the future. 
5. How do I ensure that all property taxes have been cleared by the seller?
   You can ensure all property taxes are cleared by checking the tax receipts from the seller. You can verify them with municipal authorities and see whether there are any outstanding dues using the survey number of the property.
6. What are No Objection Certificates(NOCs) and when are they required?
   A No Objection Certificate or NOC is a legal document that confirms there are no objections to any activity like property transfer or construction.
7. How can I confirm the seller’s authority to sell the property?
   Check whether the name of the seller is the same on all the documents and whether it matches the provided identity proof. If the seller is not the owner of the property, verify the power of attorney document carefully.
8. What legal documents should I check for newly constructed properties?
   The most important legal documents include a sale deed, building approval plan, completion certificate, occupancy certificate, encumbrance certificate, and NOCs from relevant authorities.
9. How does RERA compliance affect property buying?
   RERA is like a guarantee of transparency, timely project completion, and adherence to quality standards by developers. It helps protect buyers from fraud and assures legal accountability in real estate transactions.