Posted on July 5, 2014

Know your documents – Part II

Property documents form an integral of any property investment, be it an empty plot or an apartment. Continuing from our previous article, here is a list of documents that help you keep a check. Do not forget to ask for copies of all necessary permissions prior to committing financially. Check the following documents and clearance certificates to avoid getting into any legal tangle in future:

Land Use Certificate: Usage of land to the required purpose, if agricultural, has to be mandatorily permitted by the local authority. It is illegal to have residential properties on agricultural, commercial or industrial land zone. This can be checked by applying to the urban development authority and requesting the certificate to ensure that the property you plan to purchase is in the residential zone. Since cities are expanding, many land holders convert the agricultural land for non-residential usage by paying a fee to the government. In such cases, the land would fall under ‘converted zone’. In such a case, check for the endorsement order given by the ‘tehsildar’ or deputy commissioner of the zone that licenses residential construction on that land. Further, an NOC is issued for the conversion of land for residential purpose.

Encumbrance Certificate: When purchasing a flat, land or house, it is essential to know that the land or property does not have any legal dues. The term Encumbrance means charges/liabilities created on a property that is held as a security or collateral against a loan or mortgage as the case may be. It is a certificate sought for a particular period detailing all the transactions on the property till that date. It is an essential document required to receive a home loan against that property. It is an evidence that the subject property is free from any monetary or legal liabilities and hence forms a vital document. It states that the subject property is a free marketable title and the ownership can be transferred without any associated baggage.

Completion Certificate:Completion certificate is the most important document while home buying. Before handing over the possession to the homebuyer, the builder is endowed with the responsibility to get the completion certificate. Issued by the municipal authorities, this certificate confirms that the building is in accordance with the approved plan. Without a valid completion certificate, a sale deed cannot be registered.

Owning a property is a dream come true for every one of us. However, buying a property involves complexities and documentation that most people do not understand and in the process, enter into a loophole. In order to have a clean, legal transaction, one must be aware of all the documents that form the legalities of your dream home. Highly esteemed ‘Saran Developers’ develop residential projects in Bangalore that will save you the entire process of legalities. Displaying high competence and access to various resources, ‘Saran Developers’ have established extraordinary reputation in the real estate sector. Having been in the industry for long, their presence and accurate planning is a testimony in itself.