Buying a plot is one of the best investments you can make. Although it is a more affordable purchase than an apartment or villa, the purchase of a plot requires the same amount of planning. There are several documents that need to be checked and verified before buying a plot. Knowing more about these documents will help you stay alert about the entire plot buying procedure. Also, it is imperative to be legally compliant while investing in a future asset.
This is the most important document required for purchasing a plot. Sale deed has to be produced in original as it establishes the ownership of title of the property. You need to register the sale deed in the Sub-Registrar’s Office of the area where the property is located.
Khata certificate or extract is an important document for the registration of a new plot. It is also required if you want to transfer the ownership of the plot at a later stage. This document is a proof that the plot has an entry in the local municipal records. Banks ask for this paper before granting you a home loan.
General Power Of Attorney
This document is required to prove whether the sale or purchase of a particular property is being done by an authorised person on behalf of the owner of the property. This has to be produced in original for getting a home loan.
No-Objection Certificates (NOC)
There are up to 19 NOCs that have to be acquired by a developer from different authorities while building a housing project. The number may vary according to specific state rules. Ask your developer to provide you with copies of these NOCs for your personal record.
An allotment letter is one of the most important documents required for getting a home loan. It is issued by a developer or the housing authority, stating the description of the property and details of the amount paid by the buyer to the developer. You must keep in mind that an allotment letter is not the same as an agreement of sale. An allotment letter is issued on the letterhead of the authority while a sale agreement is documented on a stamp paper. Furthermore, an allotment letter is issued to the first owner and other owners can ask for the copy of the original letter from the seller.
The sale agreement lists the information about the plot including the terms and conditions, the possession date, the payment plan, and the plot specifications. The agreement also holds the developer responsible for the completion of the property. This document has to be produced in original for property purchase and acquiring home loan.
This document is provided to the buyer by the developer, and sets a date on which the latter would grant the former the possession of the property. The original copy of this document has to be produced for getting a home loan.
Collect original payment receipts from the developer if you are buying a new plot project. If you are buying a resale property, ask for a copy of receipts from the seller to be produced to the bank.
Property Tax Receipts
Property owners have to pay taxes. Ensure that the previous occupier/owner had paid property taxes and there are no pending dues. Property tax receipts also help in proving the legal status of the property.
An encumbrance certificate is required to prove that the plot does not have any outstanding legal dues or mortgages. This is one of the key documents banks ask for before they grant you a loan. This certificate also has all the details related to the past transactions of the property. In India, a Form 15 is issued if a property has any encumbrance registered; otherwise, a Form 16 will be given to the owner, stating there are no encumbrances.