Documents to Verify Before Buying a Resale Flat in India

    13 Important Documents You Must Check Before Buying a Resale Flat

    By SQUAREA Knowledge Hub

    Published: December 29, 2023

    Categories

    Buying a resale flat can be a great opportunity for you to become a homeowner without having to pay the market rate. You can also move in immediately without having to wait months – or even years – to get possession. But as a resale flat has changed multiple hands, buying it comes with numerous technical implications and complex legal procedures. It can also be risky to buy a resale flat without doing your due diligence.

    But what can you do to safeguard yourself in such situations? Here are the 13 important documents you must check before buying a resale flat to ensure you don’t get scammed — a crucial step in the Resale Flat Legal Checklist India.

    Title Report

    Conducting a Title Search or Title Verification at the Registrar’s Office gives you access to the Title report detailing the history of the flat. It will also outline information like the title holder’s name, joint encumbrances, liens, mortgages, tax rates, and property tax. This is a key part of the Resale Property Document Verification process.

    Home Loan Clearance Documents

    If the flat you are buying is mortgaged against a home loan, it is crucial to check the debt status. And to ensure that the previous owner has paid back all the pending dues to the bank, check the No Dues Certificate, No Objection Certificate, and other home loan clearance documents from the bank.

    Building Plan and Building Approval Certificate

    Buying a flat in an illegal construction can get you in trouble down the line. Make sure to verify that the local municipal authority has approved the building plan – outlining the property blueprint, equipment layout, and utilities – and the flat is built per the approved plan.

    Completion or Occupancy Certificate

    The municipal authorities issue the Completion Certificate on project completion, while local government agencies issue the Occupancy Certificate once the project is deemed to be suitable for occupancy. Collecting both these documents in the previous owner’s name is crucial to verify that the flat is constructed following relevant legal guidelines and is fit to occupy.

    Encumbrance Certificate

    The Encumbrance Certificate will outline any legal issues or transactions related to the resale flat you want to buy. Checking it can help you ensure that the property title is clear and marketable, has no dues, or has not been partially sold to someone else. This document is a key part of verifying the Resale Property Encumbrance Certificate and ensuring clear title transfer.

    Utility Bills

    You may be held responsible for any unpaid utility bills for the resale flat you purchase. Checking utility bills – including electricity, gas, or water bills – lets you know if any bills are unpaid and verify that the bills are registered in the name of the owner.

    Latest Tax Paid Receipts

    Checking the latest tax receipts of a resale flat can help you ensure that the previous owner had paid taxes on time and there are no outstanding dues or fraudulent activity attached to the property.

    No Objection Certificate (NOCs)

    Checking from competent authorities – including banks, society, electricity board, etc. – is crucial before paying anything for a resale flat because it is illegal for a reseller to sell their property without furnishing the relevant NOCs.

    No Dues Certificate from the Society

    When buying a flat in a co-op housing society, a NOC or No Dues Certificate from the society is vital to indicate that the seller has been abiding by the society’s rules and has no dues, and the society has no objection to the transfer of ownership and Share Certificates to the buyer.

    Title Deed

    The resale flat title deed is the primary proof of property ownership. Be sure to check the original title deed – outlining the names of the original seller and buyer, details of loans against the property, and any other related information. This helps you verify that the flat has a marketable title and the seller has clear ownership of the flat. It is one of the essential documents for buying a resale flat.

    Sale Deed

    Sale Deed is one of the core legal documents that will be considered as the main proof of ownership if you decide to sell the property in the future. You need to register it in the Registrar’s Office and it is the most important document you must check once the Title Deed transfers the title of the resale flat to you.

    Possession Certificate

    Builder issues the Possession Certificate to the first owner after they take physical possession of the property. The builder will not reissue this document at any time and you must obtain it from the seller after signing the Sale Deed.

    Share Certificate

    When buying a flat in a co-op housing society, you will need to get the Share Certificate transferred to you. Once you receive the Sale Deed, you will need to collect the original Share Certificate from the seller and submit it to the society along with a mutually signed transfer form. Then the society will issue a new Share Certificate – containing names of all previous owners – that will entitle you as the new owner.

    Each one of the above is a vital document for buying a resale flat. Your bank will also need you to submit these documents if you are applying for a resale home loan. Missing any of these documents can land you in trouble in the future with concerned authorities. So be sure to check them with a fine-toothed comb and safeguard yourself when buying a resale flat.

    Thinking about buying a resale luxury flat? The Squarea team can help you every step of the way. Get in touch with us today for a smooth buying experience.

    For more details on this subject, please email hello@squarea.io

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