Property Documents: Don’t Forget to Check These Papers Before Buying Property — Or Be Ready for Endless Court Visits

Property Papers: Rising property prices have made buying real estate more difficult than ever. In such a situation, it is absolutely essential to verify certain crucial documents while buying a property. A small oversight can lead to major troubles, including long legal battles and frequent court appearances. This article provides you with all the details you need to know.

Buying property is one of the biggest and most expensive decisions of a person’s life. That’s why it is vital to move ahead cautiously at every step of the property purchase process. There are several important documents related to a property that must be thoroughly examined. Failing to do so can lead to financial loss and even legal complications.

What You Must Keep in Mind

Fraud and scams related to property are on the rise. To avoid falling into such traps, it's necessary to be cautious when buying new property. Things like good location, clear and complete documentation, verification of the seller, and absence of any legal disputes over the property are some of the key elements that can not only protect you but also increase the property’s resale value in the future.

Whether you are buying a flat, a house, a plot, or any type of real estate, ensure a detailed check of the property and its papers.

How to Avoid Fraud

If there is any legal dispute on the land or property, it can be found through legal inquiry and consultation with experts. For any flat or house purchased under a project, make sure the project is registered under RERA (Real Estate Regulatory Authority). The RERA Act, 2016 was introduced to safeguard the interests of buyers and prevent frauds in the real estate sector. Buyers should familiarize themselves with this law before making a purchase.

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Essential Documents You Will Need

1. Property Title Deed
The title deed verifies the seller’s ownership and rights over the property. This is the first and most important document that ensures the seller is the legal owner and has the right to sell.

2. Chain of Ownership Documents
These documents trace the entire history of the property — who owned it previously, and how the ownership was transferred. This helps ensure that the property has been legally passed down through the correct process. Chain documents are crucial for older properties that have changed hands multiple times.

3. Encumbrance Certificate
This certificate shows whether the property has any outstanding loans, mortgages, or legal dues. It confirms that the property is free from any financial or legal liabilities. It can be obtained by submitting Form 22 at the local registrar's office. Additionally, buyers should also collect the Occupancy Certificate from the builder to confirm that the property is legally fit for habitation.

4. Possession Letter
Issued by the builder or developer, this letter indicates the date on which possession of the property will be handed over to the buyer. Note that this letter is necessary for home loan processing, but possession alone does not legally transfer ownership.

5. Property Tax Status
Check if there are any pending property taxes on the property. Unpaid taxes can create legal issues and reduce the market value of the property. You can verify this with the local municipal authorities. If the seller has defaulted, you will get to know through this check.

6. Utility Bills and Car Parking Allotment Letter
Ensure that all utility bills (electricity, water, gas) are paid up to date. Also, verify the car parking allotment letter, which states whether parking space has been assigned with the property. This is often a point of confusion in apartment buildings.

7. NOC from Resident Welfare Association
If you are buying property through a dealer or in a residential society, ensure that a No Objection Certificate (NOC) has been obtained from the Resident Welfare Association. This can help prevent future disputes or fraudulent claims regarding the property.

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Check State-Specific Laws

Laws related to property vary across states in India. For example, some states do not allow non-agriculturists to purchase agricultural land. In others, only local residents can buy land. It is also essential to check whether a property has been converted from agricultural to non-agricultural use for residential or commercial purposes. Ignoring this can result in heavy fines or even property seizure.

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Final Advice: Be Cautious and Informed

Buying property is a significant investment. Never rely solely on verbal promises or incomplete paperwork. Always get your documents verified by a legal expert. Invest time in understanding the background of the property, ensure all taxes are paid, and double-check that there are no ongoing litigations or disputes.

A smart buyer is an informed buyer. Verifying property documents may take some time and effort but will save you from years of legal hassles. Don’t let a small mistake cost you your peace of mind.