Buying a home is never an easy task. You need lot of planning and calculations. Here are some key legal documents that homebuyers should be aware/know at the time of buying a home. Rajesh Narain Gupta, Managing Partner, SNG & Partners, says, “While purchasing a residential property, a buyer should check out for title documents (ownership documents of seller) indicating from where the current seller bought the property. A key title document is the sale deed, also known as the conveyance deed, which stipulates that the ownership rights on the property have been transferred by the seller to the buyer. It is key that a homebuyer should ensure the title of the seller before the sale deed is executed.” A property buyer should insist that a seller furnish an encumbrance certificate, a mandatory document which acts as an evidence of free title in case of property transactions.
Prior to buying a residential property, due diligence should also be undertaken for ensuring that mutation of seller is documented. Mutation refers to recording the title transfer of property from a seller to a buyer in the revenue records of the Municipal Corporation or society as the case may be. Mutation is undertaken merely for the purpose of property tax payment and does not stipulate a legal title for the person in whose name the property is mutated.
The Completion Certificate (CC) and Occupancy Certificate (OC) pertaining to a housing property needs to be in order. A CC states that no building rules or compliances have been violated and sanctioned building plans are adhered to while constructing the building, an OC proves that the necessary equipment and requisite facilities have been installed and the building is fit for occupation.
