What Are the Documents Required to Buy a Property in India?
Purchasing a residential property in India has become very expensive due to the constant upward trend in prices over the last few years. Earlier, you could have bought a residential property such as a house, flat, villa or plot using only your savings but now that has become a distant dream. Nowadays, the whole struggle for every prospective home buyer is arranging adequate money to take care of the margin requirements for a Home Loan as well as other allied expenditures such as registration charges, tax deductible at source and statutory duties.
Yes, it is true that in the modern times, it is virtually impossible to purchase a residential property without a Home Loan. And even if you have sufficient money for an outright purchase, it is not recommended to go for it. It is so because of two reasons, firstly, Home Loans are available at an incredibly low rate of interests and secondly, you get tax deductions on interest paid on Home Loans and taking out such a massive chunk of cash from your reserves would put unnecessary strain on your finances.
All about Home Loans
Home Loans are one of the most popular financial products in India and is extensively used by prospective home buyers to purchase their dream house. Home Loans are secured loans against which you need to mortgage the property that has been obtained with the loan amount. The tenure of a Home Loan can extend up to 30 years with rates of interest starting from 8.40% p.a. Most lenders also offer the facility of a top-up loan with Home Loans also, which help with management of your financial requirements.
You can Apply for a Home Loan in India Online as well as offline. There are various online loan aggregating platforms, where you can easily compare multiple loan options and select the best option for you. Most financial institutions offer convenient online application facility, where you need not visit any branch or office for submission of the documents. All you have to do is fill the application form online, and the lenders will send their representative to your place to complete all the formalities. But if you prefer the traditional method, you can walk into office or branch belonging to your preferred lender and set things in motion.
Documents Required to Buy a Property in India
Purchasing a property not only involves you scouting different locations and neighbourhoods, but it also requires you to handle a lot of documentation. In India, while buying a residential property, you need to pay particular attention to the documentation part, in order to ensure that you are purchasing the right property. There are certain documents that you must check for and obtain from the seller, to establish your ownership firmly. If you do not collect and review all the documents thoroughly, you will face a hard time selling the property in future. Some of the essential documents that are required to buy a property in India are:
1. Sale Deed/Title Deed/Conveyance Deed
It is the most important document to establish your ownership of the property. You must ensure that you have all title deeds and conveyance deeds to determine the ownership of the property for last 30 years. You should insist on a registered sale deed which has been registered in the office of sub-registrar.
2. Extracts from Mutation Register
You need to obtain the relevant excerpts from the mutation register as it contains essential information about the last owner, the present owner, mode of purchase, nature of land and the total area of the land on which the property is located.
3. NOC from Government Departments
You need to have NOC (No Objection Certificate) from government departments in order to ensure that there are no statutory dues pending and also to make sure that the property is regularised and not under acquisition or demolition from any government department.
4. House Tax/Property Tax Receipts
You must get the house tax/property tax receipts from the seller at least for the last 5 years in order to ensure that no house tax dues are pending and it also establisher the ownership of the seller.
4. GPA (General Power of Attorney)
If the last sale/purchase of the property was done through GPA, then you need the copy of the GPA to ascertain that the person who carried out the transaction was duly authorised to do so.
5. Sanctioned Building Plan
It helps you to ascertain that the building has been constructed as per the approved plan and no rules have been flouted by the builder.
6. Allotment Letter
If you purchase a property from a builder or society, you need to obtain the allotment letter to know how much money is outstanding to be paid to the builder or society on account of the said property. It also contains all necessary details about the property.
7. Payment Receipts
You need to have all the signed payment receipt from the seller specifying the receipt of the money/advance paid on account of the purchase of the property.
8. Documents Pertaining to Existing Loan
If the property has an existing loan running, you need to obtain some crucialdocuments from that lender such as foreclosure letter, list of documents and NOC regarding the sale of the property.
9. Agreement to Sell
You must have a signed agreement to sell, drafted on a stamp paper, and duly registered with the sub-registrar, in order to ensure that the agreement is binding on both the parties.
Whenever you are going to purchase a residential property in India, do not rush into making any decisions. Check all the documents, avail services of a lawyer or property consultant and only after thorough research take a final decision.
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