Buying a new flat or home is one of the most important milestones in life. But the excitement of owning a new house also comes with many formalities and paperwork. Each paper you sign or receive holds great importance. For your peace of mind and to protect your investment in the future, it is always wise to have the necessary and detailed documentation.
This blog discusses the important documents needed to buy a new flat, the new home purchase procedure and why a title deed is crucial.
Importance of documentation
Proper documentation is necessary when purchasing a new flat. It validates your ownership of the property and makes sure that your rights are protected. Good documentation provides legal protection if issues arise and makes it easier to sell or transfer the flat in the future.
Also, documents are essential when applying for a home loan or mortgage, as lenders require them.
The following is the list of documents that are mandatory to have when you decide to buy a new home:
- Sale deed: This document legally conveys ownership of the estate from the seller to the buyer. It must be registered with local authorities. The document usually mentions the property details, the agreed sale price and the signatures of all parties. You must get this deed stamped and registered, as it forms the primary proof of ownership.
- Title deed: A title deed confirms that the seller owns the property and is authorised to sell it. It also confirms that the property is free from legal complications. Always verify the original title deed before finalising the purchase.
- Encumbrance certificate: This certificate shows if the property has any legal dues, such as mortgages or loans. A clear certificate indicates the property is free from encumbrances and safe to buy.
- Occupancy certificate: Issued by the local authority, this certificate confirms the building meets all safety and construction standards. Having this proves the flat is fit for occupancy.
- Building approval plan: This document confirms that the construction has received the required approvals from local bodies. It ensures the building complies with rules and zoning laws.
- No-objection certificate (NOC): Issued by the builder or housing society, this certificate confirms there are no objections to the sale. It prevents disputes at a later stage.
- Identity proof and address proof: Both the buyer and seller must provide identification, such as an Aadhaar card or a passport, and recent address proof.
- Payment receipts: Always collect receipts for every payment made towards booking, down payment and installments. These are helpful if there is any dispute later.
Types of home insurance to buy for your new flat
Once you've completed the new flat purchase procedure, the next important step is choosing the right type of home insurance to financially safeguard your property.
Following is a list of home insurance covers that you can go through before buying a new flat:
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Type of home insurance
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What it covers
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Structural cover
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Covers damage to the building’s structure, like walls and roofs.
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Home content cover
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Protects personal belongings like furniture, electronics and valuables.
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Fire cover
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Covers damage caused by fire, accidents, or natural disasters.
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Public liability cover
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Covers damages or injury to a third party at your home.
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Theft cover
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Compensates for stolen items covered under the policy.
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Landlord’s cover
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Covers the building and its contents even if it’s rented out.
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Tenant’s cover
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Insures the tenant’s personal belongings (not the structure).
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Importance of home insurance
Apart from new home documents, acquiring the right insurance is a step you can’t overlook. Home insurance financially safeguards your flat and belongings. If there’s any major damage caused by fire, theft or a natural disaster, it can cover costs like repairs, replacements and even temporary housing. The insurance also contains liability coverage if someone is injured on your property. While documents confirm ownership, home insurance safeguards your home from real-world problems.
Conclusion
The flat-buying journey can be stressful, but good preparation makes it smooth. Each document is important, whether it is a sale deed, a title deed or necessary approvals. At the same time, picking the right homeowner insurance policy offers financial safeguard against theft or damage.
Staying informed about the new flat purchase procedure helps ensure that your investment is legally secure and financially protected.
FAQs
1. Which document shows I am the legal owner of the flat?
The registered sale deed and original title deed together show who owns the property legally.
2. Is home insurance compulsory for new flats?
It is not required by law, but most lenders ask for building insurance before approving a home loan. It is highly recommended for financial safety.
3. How much home insurance do I need?
Choose a homeowner insurance policy based on your property’s rebuild cost and value of contents, not market price. Review regularly to keep coverage up to date.
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.