A check-list of relevant documents for potential home buyers
Buying a home or property is a cherished dream for any of us as it involves significant capital investment. While it is generally recommended that you should deal with reputed developers, one must take time out to conduct due diligence before signing on the dotted line.
Here is a checklist of documents that you must peruse before making any financial commitment:
Title deed is the most important document as it gives details about ownership, rights, obligations and mortgages on the property. So it validates whether the land where the project is coming up has been registered and development rights have been transferred correctly.
Conversion Certificate: As majority of the land is agricultural in India, it is important to obtain a conversion certificate. It will be issued by competent revenue authority in order to change the use of land from agricultural to residential purpose and in some cases from industrial to residential usage. An NOC has to be obtained from the competent authority like Tahsildar office for this conversion.
A Commencement Certificate is a legal document issued by the local authorities after the inspection of the site. This document states that the project meets the given criteria and hence construction can be undertaken by the builder. Failing to acquire this certificate will result in the construction being considered illegal and can even attract an eviction notice.
Building and layout plans:
It is good to run an additional check and verify that the building plan and layout plan has been approved and no bye-laws applicable in the area, have been broken. Make sure that the floor where you have booked your flat has been approved in the building plan. In addition, you must also ensure that the project has received environmental and municipal clearances. For instance, the builder has to ensure that his project does not interfere with the urban and town planning and has unrestricted road access.
On completion of construction, the developer receives this certificate from the municipal authorities. This is issued by the authorities stating that building is in compliance with rules and is built according to the approved plans. The certificate documents the location and land identification of the building, certifies if the building is in accordance with building standards i.e. distance from road and adjacent buildings, height of the building, and other approved norms of the municipal authority as well as the building plan.
An occupancy certificate also known as an OC is issued by a development authority or municipal corporation to a newly constructed building. This is issued after inspecting the building with regards to adherence to the approved plans. It is essentially a kind of ‘fitness certificate’ and allows the residents to move in and stay. Without an OC, a building may be considered illegal and impact the availability of official utility connections like gas, water, power etc. It is a very important document and hence ask your developer a copy of the OC and cross check it with the relevant authority to be doubly sure, especially in case of smaller builders.
Make sure you properly check all these aforesaid documents before arriving at your decision of buying your dream home.