Crucial Legal Certificates for Home Ownership
Hızlı Bakış
This article details essential legal certificates required for home ownership, including sale deed, mother deed, encumbrance certificate, completion certificate, occupancy certificate, allotment letter, possession letter, mutation letter, no-objection certificates, RERA registration, and tax receipts, to ensure a dispute-free and legally sound property purchase.
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Property acquisition is a significant financial undertaking, making due diligence essential to avoid disputes, liabilities, or fraudulent claims.
If you are confused by personal finance terms, jargon and calculations, here’s a series to simplify and deconstruct these for you. In the 110th part of this series, Riju Mehta lists the legal certificates that are crucial for home ownership.
Property is one of the most expensive acquisitions for most people. As such, it’s important to conduct due diligence to ensure it’s free from disputes, financial liabilities or fraudulent title claims. This can be done by securing, examining and verifying the following documents carefully during the purchase process.
Sale deed
This crucial document proves that the ownership of the property has been legally transferred from the seller to the buyer. It’s important to register it at the sub-registrar’s office after the sale with correct and accurate details.
Mother deed
This document provides the history of property ownership and traces its transfer over the years. It helps confirm that the property changed hands legally without any disputes or frauds.
Encumbrance certificate
This certificate shows whether the property has any financial or legal liabilities in a specified period. It’s important that you check it for a long duration of around 30 years to ensure the property has no encumbrances.
Completion certificate
This is issued by the local authority certifying that the property has been built and completed in accordance with the approved plan and building regulations. It is issued after the building has been constructed.
Occupancy certificate
This document is issued by the local municipal authority certifying that the property has been constructed in compliance with the building bye-laws and sanctioned plan, and that it is safe and fit for occupation.
Allotment letter
This is issued by the builder, developer, or housing authority to confirm that the property has been allotted to the buyer, usually at the booking stage. It acts as proof that a specific unit has been allotted to the buyer for a given price.
Possession letter
This document is issued by the builder or developer, informing the buyer that the property is ready for physical possession after completion.
Mutation letter
This document, issued by the local municipal authority or revenue department, updates the legal transfer of property in government records. It registers the name of the new owner, which helps in the correct owner paying the property tax.
No-objection certificate
It’s important to have NOCs from various local authorities such as the water board, electricity department, fire department, etc., confirming compliance with the regulatory requirements and ensuring the safety and proper functioning of these utilities.
RERA registration certificate
This certificate proves that the project has been registered with the state’s real estate regulator under the Real Estate (Regulation and Development) Act, 2016 (RERA), and can be legally marketed and sold, helping avoid any frauds or misselling of the property.
Tax receipts
The receipts help confirm that the taxes have been paid by the previous owner so that the new owner does not have to bear the financial liability of the overdue taxes and penalty.
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Açık Sorular
- What are the specific registration fees for each document?
- Are there regional variations in these document requirements?
