Creating a property is a Herculean’s task for a first time property buyer. Whether it is for residential purpose or commercial purpose, one needs to keep a complete check on various factors. Right from buying to construction of a property, one needs to be vigilant enough to ensure that everything is being followed as per law and order.
Property documents is one of the most important factors that you should pay heed to before any real estate deal. A property with complete and genuine documents is valid tender otherwise you might waste a lot of time and energy in getting the required papers later on. Sometimes the entire project under construction meets a crippled fate due to documents.
If the documents are clear you can easily get home loan too. Besides your CIBIL score, complete documents also ensure if you would get a loan or not.
So, let’s know about the documents to be checked before buying an under construction property.
Under Construction Property Land Record
The property’s land record basically defines ownership, title, obligations, rights and mortgage attached with it. With this paper attached you get to know if the under construction property’s title is clear or not. So, it is very important to check land records with the builder.
To ensure the validity of the document provided by the builder, you can also obtain a copy of land records online from the state government or the concerned authority. RTI can also be used to get the information. Land record is a very important document and should not be missed at any cost.
Certificate to define the land use type
Next, it important to check out the land use certificate. The land use certificate will ensure clear status of the property– commercial or industrial zone. For under construction properties too, it is important to check out the land use document from the concerned authority. Many a times, builders start a project without the required certificate and the construction haults later on.
Even if your property is under construction, the clear title entitles you to a home loan. So the property buying is for building assets. Create assets with clear status always.
Now by checking construction certificate you can be rest assured if the builder has got several other clearances like title and layout plan. Without a commencement certificate a builder cannot begin the construction as per the law. The commencement certificate is issued by the development authority or town planning department. So always check this document thoroughly too.
Building / Layout Plan Approvals
It is very important to check out layout plan approval. Without building approval, never go ahead with the purchase. By merely looking into building/layout plan approval document you could be rest assured about a simple fact that the final project and promised project would not vary. Many times builders’ preliminary layout plan changes multiple times till the concerned authority grants approval. Thus always buy a property based on approved plan and not the proposed one.
No Objection Certificates (NOCs) and other important Clearances
No objection certificate or NOC’s from various departments is essential for constructing properties. Here is a quick list of a few.
- NOC from the fire department- This NOC is important to ensure the safety and security of life in the property.
- NOC from state pollution control board- This is important as the board ensures if the concerned project would not harm the environment in any form.
- NOC from Wildlife boards- it is very important too. In Noida several under construction projects are haulted from years due to failure of obtaining NOC from a bird sanctuary.
- NOC from the Airport Authority would also be required
An NOC from the builder on their letter head should also be provided for transfer of the ownership.
After verifying the documents mentioned above you should also ask for a copy of booking form, allotment letter and BBA.
You should also ask for a letter from the builder to clearly state that the latest progress of the construction project. Next you need an agreement of purchase with the builder. It needs to be duly stamped and registered.
However when property’s registration is pending, you can ask for original documents including copy of agreement with builder and money receipts by Sub-Registrar.
An acknowledgement copy on authority letter where in applicant writes to Sub-Registrar is also required.
There should also be proof of own contribution to the property.
With all these documents in place you would not have any trouble in buying an under construction property.