Buying a house is a significant decision that goes beyond simply choosing the right location or design. While the excitement of owning a new home is undeniable, it is equally important to focus on the legal and administrative aspects. Ensuring that all property and legal documents are in order can prevent potential issues in the future.
This blog lists all the important documents needed to buy a house.
Why is it essential to check documents before buying a home?
Before buying a house, checking all property documents is important to confirm that the property truly belongs to the seller and that there are no hidden legal issues. Reviewing them carefully helps avoid future disputes, fraud or unexpected financial problems. It also ensures that the property meets all necessary approvals and government regulations. Taking the time to verify home documents gives you peace of mind and confidence that your investment is safe and legal.
Which documents should you check before buying a home?
Here is the list of documents needed to buy a house. Make sure to collect all these documents and get them verified by the concerned authority.
Agreement of sale
This is a house agreement contract that outlines the terms and conditions and proves that both parties are committed to completing the transaction under the specified terms before the final sale deed is executed.
Title deed
The title deed is a legal document that establishes who owns a property. It should clearly show the current owner and be free from any disputes or legal claims. For resale properties, ask for the “mother deed” that shows past ownership.
Sale deed
It is the official proof of the sale. It has details about the buyer, seller, property and payment. Registration within four months is required for it to be valid.
RERA registration certificate
A RERA (Real Estate Regulatory Authority) registration certificate is a unique number that buyers can check on the RERA website to ensure that a project is legitimate.
Khata certificate
A Khata certificate is an important municipal document that records key details of a property, such as its size, location and ownership.
Completion certificate (CC)
A completion certificate confirms that a building or project has been constructed according to approved plans and complies with all safety standards, building codes and regulatory requirements.
Occupancy certificate (OC)
An occupancy certificate confirms that the property is safe to live in and verifies that it is ready for habitation. This document is used to obtain home loans or secure approvals for renting or commercial use.
No Objection Certificates (NOCs)
A developer is required to secure NOCs from relevant authorities and departments before completing a project. A home buyer must receive a copy of these certificates and keep them safe for future reference.
Possession letter
A possession letter is an official document issued by the developer to the buyer, specifying the date when the property will be handed over.
Things to consider while verifying documents
Besides checking documents needed when buying a house, keep these points in mind to avoid future issues:
- Verify the authenticity of all papers to ensure they are original and properly stamped.
- Confirm the property boundaries and size match the documents.
- Check for any pending dues or unpaid taxes related to the property.
- Look out for any disputes or legal notices concerning the property.
- Make sure the property complies with local zoning and building regulations.
How can home insurance benefit you?
Home insurance protects your investment from disasters like fire, storms or theft. It covers repair or rebuilding costs and protects personal belongings such as furniture and appliances. In case someone is injured on your property or there is damage to a neighbour’s property, your insurance can help cover legal expenses. If you need to stay elsewhere while restorations are done, insurance can support your additional living costs too. Always check the policy wording carefully to understand what is covered and any exclusions that may apply.
Conclusion
It is important to check all the documents required for house purchase before buying a home to avoid future complications. This helps ensure the property is legally clear and meets all necessary rules. Make sure you have all the right papers ready before finalising the purchase.
Another important document you should have is your home insurance policy. It covers your financial losses due to damage or loss caused to your home, thus offering a complete safety net.
FAQs
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What documents are needed to buy a house?
Usually, you need a title deed, a sale deed, RERA registration, building approvals, completion and occupancy certificates, an allotment letter and a possession letter. However, exact requirements can vary.
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Is home insurance required when buying a property?
Home insurance is not mandatory when buying a house, but it is advisable to get it, as it provides financial coverage against various risks by covering your losses and damages.
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What if I find legal issues in the property documents?
If you see any legal issues, the best step is to consult a lawyer or a property expert who can guide you by analysing your situation and provide solutions depending on the property and terms involved.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.