Legal documents related to property purchase
In the real estate industry, purchase of property is an everyday affair. Especially with the growing property demand, many people dream to own a property either for their living purpose or as a long-term investment. In either case, it is important to ensure that the property you are purchasing is freehold, authentic and does not carry any legal ramification. This article provides you an insight of what legal documents related to property purchase may be associated with proving the authenticity of a property that you want to buy.
“Title Deed” of the property
This is the most important and prerequisite document that you must thoroughly check and verify is the title deed of the property in place. This is a legal document that mentions the name of the rightful owner of the property and also indicates if there are any specific remarks about the property and other important details. Further, to ensure that the owner does not bear a loan against the deed, ask for the original deed and verify the details.
Receipt against “Property Tax”
The next important aspect to check is if the owner has paid the property tax and cleared all dues till date. You may ask the property owner for the latest property tax receipt and inspect to your satisfaction. To be more specific, you can approach the tax office with the property number and details to get the updated information about the property tax, because in some case the owner may not be the payer of property tax. Additionally, by now you would have checked the owner name on the title deed and so ensure the tax receipt has the same owner name correctly mentioned.
“Encumbrance Certification” on the property
An important aspect of property buying is to check if the property that you plan has any sort of dues to the legal. An encumbrance certificate is generally issues by the sub registrar office mentioning that the property does not have any legal dues or complaints, as the context might be. This certificate may be asked for the entire period of time since when the person owns the property. This is typically a situation when you are planning to buy a land property.
“Release Certificate” of pledged lands
When you plan to buy a land property, a release certificate that certifies the owner has cleared all the loan dues against the land may be necessary. Some land owners do take loan against their land, which afterwards are known as pledged land.
Agreement of sale
Possibly one of the most important among all the legal documents in the home buying process is the sale agreement document where you as a buyer need to pay an advance to the home owner and both sign off the agreement letter. This signed letter is a legal certification outlining all the statements that the buyer and seller agree on, including the cost, payment modes, and other terms and conditions applicable.
Based on your home agreement, the property in a specified timeframe needs to be registered in the buyer’s name, certifying that the name mentioned in the rightful owner of the said property. This is again a part of the legal step wherein the interested property buyer needs to make the payments against stamp duty, registration fees, lawyer fees, and so on.
In addition to the document types mentioned here, there may be other documents involved in the process of buying a property depending on whether the property is a land, an under construction commercial or residential building, or an existing property. Having an understanding of these documents will help you as a buyer to ensure that you take care of the necessary documentation at the right time in the right way to avoid any hassles while buying a property.