Before investing in a project, investors are required to verify a number of key documents, including those that pertain to the sanctioned layout, commencement certificate, planning, permission for non-agricultural use, title certificate, urban land ceiling (ULC) order, and permission papers related to environmental clearances.

Any transaction involving real estate calls for extreme caution. In order to own a piece of property without any hassles, verifying the legitimacy of the documents that are associated with it is essential, regardless of whether you are the end user or an investor.

Document check lists while making an investment in real estate

Let's break down each of these important documents and make sure we understand them.
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Property documents and certificates

If you have decided on a specific piece of real estate to purchase, the first step in performing your due diligence is to examine all of the relevant property documents and certificates, also know about how to reduce the taxes while investing in real estate.

The title certificate, also known as the title deed, is the most essential piece of paper. The builder's right to the property can be established through the use of a title deed, which is a formal legal document. When verifying the legitimacy of the title deed, do not be afraid to seek the advice of a real estate professional or a legal professional. You also have the option to demand to see the chain of agreements, which will make the history of the property abundantly clear. Your goal should be to ensure that there are no liens or other claims against the property you want to buy.

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Following that is the floor plan. The construction of the property ought to be done in accordance with a layout plan. If there is any inconsistency, you should steer clear of purchasing such property.

Put in a request to obtain the certificate of occupation or possession. It is unlikely that the builder will be able to provide it if he has broken any legal norms or has left the construction unfinished in accordance with the layout plan. Until you have obtained the apartment's occupancy certificate, you will not be permitted to use it in any capacity. The certificate of occupancy can be obtained from the local municipal body (OC). When someone lives in an apartment that does not have this type of certificate, the occupancy is considered to be illegal. Only after a builder has finished the project and been awarded the completion certificate are they eligible to receive the occupancy certificate. The occupancy certificate will not be given out if any of the government's standards have been broken in the construction of the project. It is essential to have the occupancy certificate in order to qualify for income tax breaks related to the mortgage. It's also possible that you'll need it in order to get your water and electricity connected. It is possible that you will be unable to resell the property if you do not have it.

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When you invest in real estate, it is imperative that you acquire the following six documents: a title deed, a commencement certificate, a completion certificate, a chain of agreement (mother deed), a layout plan, and an occupancy or possession certificate.

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Other important documents

The certificate of no dues from the various government departments, such as water and electricity, municipal tax, building society charges, and so on, is another essential piece of documentation that must be presented when purchasing real estate for the purpose of investing.

Verify the loan, as well as any encumbrances, with a number of different banks and financial institutions. Get a copy of the most recent electricity bill and the most recent tax payment receipt, as well as a copy of the mutation and any power of attorney, if there is any.

Compare each of the copies of the document to the original. These days, clearances from the pollution department are also considered to be of the utmost importance. In the event that any environmental laws were broken during the course of the project, the pollution department reserves the right to pursue legal action at a later date.

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Why is it necessary to have these documents?

You will easily be able to evaluate the builder or the seller's authenticity based on the documents that are available to you. If you go to a bank with the intention of obtaining a home loan, the first thing that the bank will inquire about is whether or not you have all of the necessary documents available. Your application for a loan may be denied by the bank if you do not provide all of the required documentation. Whether you are purchasing a property that is ready to move into or one that is still in the process of being built, it is imperative that you have all of the necessary property documents.

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Avoid relying on financial institutions for verification

Do not put your trust in financial institutions to conduct your background checks on your behalf. Take for instance a situation that occurred in Greater Noida a few years ago, in which homebuyers were granted loans for properties that were still in the process of being built. After some time had passed, the former farmer who had sold the land to the developers began to lodge complaints against them in legal proceedings. Home buyers suffered as a result of the halting of multiple projects.

Therefore, whenever you buy a piece of real estate, you should make sure to keep copies of each and every document.

You have probably heard in the news numerous times about delays in possession, disputes over property, and problems caused by errant builders. The availability of all of the necessary documents is the primary factor that safeguards the interests of prospective homebuyers in all of these kinds of transactions.

If you intend to make a financial investment in the real estate market, you should always seek the legal counsel of a lawyer or a property consultant first.

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