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.


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