Critical Documents You Should Verify Before Investing in an Apartment

June 1, 2023
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If you are a prospective homebuyer, then you probably already know about some of the issues that arise during the process of buying a house. The best way to avoid these speedbumps, is to have as much information about the legitimacy about the property and builder as possible. Whether you are looking to buy under-construction or ready-to-move-in flats in Mumbai or any other city, there is a long list of paperwork of approvals and registrations that can help this process go as smoothly as possible, if procured. We at L&T Realty have put together a list of some of the most important documents that you, as a homebuyer, must verify before making a decision on a property.

Vital Paperwork to Confirm Before Buying an Apartment!
Check Out the Building Plan…Before Proceeding With Your Home Buying Plan!
It is always good to get a hold of the layout plans of the building before you even come close to a decision, especially if the property in question is currently undergoing its construction. These plans should be approved by the concerned authorities. It will give you a much better idea of the scaling, sizes and overall orientation of the spaces of the property. It also provides a homebuyer with a lot more transparency, allowing them to see whether the builder has deviated from the original plan. In the case of a completed project, you can inspect the property for yourself and see if it has materialized in accordance with the plans.

A Green Signal for the Builder: Commencement Certificate
A commencement certificate (CC) is another crucial document that you should procure before making any decisions on purchasing a property. It essentially provides the builder with the green light to proceed with the construction of the property in question. The lack of a commencement certificate can be very problematic, and may possibly indicate major discrepancies with regards to the approvals for the property itself. It could also mean that the land on which the property has been built may be under dispute. Homebuyers tend to make the common mistake of only looking at the Occupancy Certificate (OC) and not the CC.

To Steer Clear of Hindrances: Certificate of Encumbrance
A certificate of encumbrance can be a highly valuable document, as it shows whether the property is dealing with any issues, especially of the legal or financial variety. These could be that the property is burdened with any monetary debts, or is in the middle of any litigation cases. Such records can actually go back as far as decades, and it is important to keep yourself fully informed about any such issues. Whether you are looking to buy 4 BHK flat in Bangalore or apartments in South Mumbai, this is a crucial document to procure before deciding on the property.

To Verify the Builder’s Property Ownership Status: Title Deed
The title deed is a record that would basically confirm the current ownership of the property. As a homebuyer, it reveals to you whether the builder holds ownership of the property in question and also whether they have the right to sell it. Obtaining this document is very useful as it will also tell you whether there are any ongoing legal disputes regarding the ownership of the property. Getting this document examined by a lawyer, and confirming the ownership and the rights to sell are vital to your decision of buying the property.

NOC…To Ensure a Smooth Property Transfer From Builder to Buyer
It is important to obtain a No Objection Certificate (NOC) from the builder of the property. It is essentially an approval to the homebuyer that they can move forward with the purchase of a property. An NOC will also confirm to you whether there are any dues on the property by the seller. This document will then be required by a bank and government authorities to confirm the transfer of the ownership of the property.

The Ultimate Saviour: RERA Approval
The Real Estate Regulatory Authority (RERA) can be a huge help to prospective homebuyers in protecting their interests. A project that has received approval from the state RERA immediately becomes a much more attractive and reliable option to the average homebuyer. If a project is registered by RERA, then details such as the property’s dimensions, builder’s financial reliability, as well as buyer’s rights become so much more transparent.

The Takeaway:
The level of paperwork that is involved when it comes to property sale and ownership, is quite substantial. However, these were some of the key documents that are also bound to come in handy for homebuyers, giving them a much clearer idea of what they are getting into, and what their rights are in the process of the purchase of real estate. When you are looking to buy under-construction or ready to move in flats in Powai or any other area, it is imperative that you put your faith in a name and builder you can trust, like us at L&T Realty!

Disclaimer: Stock image used for representational purpose only.