Buying property is no easy task. It involves research, running errands, working hard, and yes, loads of money as well. Being precautious is vital. Otherwise, all the effort that goes into buying a dream house might be a waste of time.
More often than not, people take home loans from leading banks which are essentially regulated by the central government. Besides being a financially viable option, a home loan is the way to go for getting all those documents right. The buyer does not have to run around gathering all the important documents for a new house. All the nitty-gritties of documentation are handled by the bank processing the loan. However, it is important that each and every buyer interested in investing in property or staying in a new house is aware of all the papers required to purchase a plot of land, apartment or Villas.
Title Deed: It is the most important set of documents that gives a person ownership of property. It may be accompanied by a Mother Deed, which traces the origin of the property’s ownership to the very beginning. In fact, it also shows any and every transfer of ownership taken place previously.
Encumbrance Certificate: The document is necessary to prove that the land, property, or house being purchased is free from liabilities and is not leased and/or mortgaged. Any person owning the property without an encumbrance certificate can be pulled up for having occupied it forcefully.
No-Objection Certificate: There are many government bodies that need to issue a no-objection certificate for a land, property, or house to be sold without any issue. For instance, the electricity board, the waterworks authority, the pollution control board, the fire and safety department, the transport (airport) authorities, etc., all need to express no objection on the sale of the property.
Joint Development Agreement: It is an agreement between a landowner and a builder, where the landowner will contribute land and the builder will undertake development activities. This is necessary when buying a flat in an apartment complex, where a landowner has parted with the land and given it up for construction in exchange for a specified number of flats.
Some other important documents that need to be checked for by investors are RTC Extracts, Mutation Register Extracts, General Power of Attorney, Building approval plan, Commencement Certificate, Completion Certificate, Occupancy Certificate, Sale Agreement, Deed of Declaration of the Apartment Owners Association, and No-Dues certificate (from the building association).
Whether your bank procures these documents or you do it yourself, it is important to make sure that all the papers are in place. There is an interest you are paying to the bank, and service charges are already applicable for a set of services they provide to home buyers. Remember, small errors in paperwork can be deeply worrisome. Do not shy away from bothering your bank, especially when you have doubts about the completeness of paperwork. After all, buying a Luxury villas in Bangalore is about making your dream come true!