Important legal documents that home buyers should be aware of before buying a property

Owning a home is one of the greatest dreams for an average Indian. A lot of planning and saving go into each home buying process. However, it is not enough that you find a suitable property for a desirable rate at the most convenient location. Before you commit to the deal, it is important to make sure that the property conforms to the real estate rules and regulations prevalent in that region as well as the general property rules of the country. The legal aspect of the home buying process can be quite daunting for an inexperienced buyer. A number of documents and records need to be verified before the actual purchase of the property. While it is safer to get the help of a lawyer or an experienced real estate agent, buyers themselves can perform the inspections and verifications if they have a basic knowledge of the important legal documents in home buying. Here is a list compiled by the experts at menioning the crucial documents that a homebuyer needs to be aware of before buying a property.



  • Title Deed

This document tells you the flow of ownership of the property. Look for the original title document to ensure that the owner has the right to sell the property and transfer ownership. You cannot own the property you buy unless there is the title deed specifying the current owner and the previous owners, if any, in a continuous and unbroken sequence. If the original title deed is not available, get certified copies from authorised institutions. Sometimes, the title deed may be deposited with banks or other financial organisations for obtaining loans. This has to be verified before purchase.

  • Approval plan of the building

The building plan has to be approved by the authority concerned in each region or zone. For example, property buyers in Chennai need to verify if the building plan is approved by the Greater Chennai Corporation and Chennai Metropolitan Development Authority. Without this document, the building will be an illegal structure and lead to complications such as demolition.

  • Commencement certificate

Local authorities issue this certificate after inspecting the site and verifying that the project conforms to the real estate rules and regulations.

  • Power of attorney

If someone else is selling the property on the owner’s behalf, check for the Power of Attorney document that empowers the person to perform the transaction.

  • Tax receipts

All the latest original tax receipts must be verified before purchase. Also check the latest electricity and water bills to ensure that the current owner is up to date on all payments.

Home buyers can also verify documents like completion certificate, occupancy certificate, encumbrance certificate, betterment charges, etc.

A look at property market in Delhi

Are you planning to buy a property in Delhi? Before the decision-making process let’s check out some important tips at the time of buying properties in Delhi.

Area of the Flat:  You should check the area of the flat very carefully. It is called covered area. In Delhi, promoters are paid only for the covered areas, not for the super built up areas of the flat. But other than the covered areas there are few more factors are also involved. Depending upon all these factors builder will fix the amount to be paid by the buyers.


Preference regarding floor: At the time of buying flat you should be very careful regarding the floor offered by the builder and floor preferred by you. Most of the people though prefer first or second floor most of the time.

Preferable location: This is a very vital point while selecting the flat.  Flat facing road, flat facing mall charged always high price but flats in a bit interior area or the bit away from the malls and the marketplaces can cost less in amount.

Affordability: Another important point is affordability off the buyer. The price of the flats depends on many things like locality, amenities etc. So completely depending on affordability limit one can select the best one to buy.

There are many other factors one should check before buying like nearest school, nearest hospital, nearest market and also transportation factors.

Other than these factors some precaution should be also taken at the time of buying decision. These are:

Property title: Do check the entire document regarding property and property title. Go for an inspection process regarding the original titles of the deed. Do search the land records and the records of the sub-register. Search all the papers of the society where the society is enlisted.

Inspection of the sanctioned plan: All the sanctioned plan of the builder should be certified by the authority, especially for those building under constructions.  Not only that, a buyer should collect the completion certificate of the building.

Power of Attorney: The power of attorney should be strictly scrutinized by the buyer. Sometimes the owner gives the power of attorney to the other person for any kind of decision making. The relationship between the owner and the power of attorney holder should be checked properly to avoid any kind of future harassment. All these above-mentioned steps should be followed carefully to have a safe and secure property purchase.