Which 12 documents should be maintained before purchasing any property?
The 12 documents which we should keep in mind before purchasing any property because we have often seen that if we don’t have the proper documents or there are any mistakes in the document, or if we buy a property that is already sold to someone who has the right over it. Then the property gets involved in court cases and all your earned money goes to waste. So, we’re going to talk about these documents.
The most important document you have to look at is the Title Document. The meaning of this document is, from whom -soever you are buying the property means the seller who is selling you the property, how that person got the property.
Generally, the property comes in 3 ways,
First is Sale Deed, this means that the person who sells the property to you from where he gets that property, will be in the sale deed so you have to look at the original document. If the person selling you the property has the sale deed. so, see it once.
Secondly, if they don’t have a sale deed then there is a gift deed meaning the seller has got it from someone as a gift so you have to look at the gift deed, and see if it is properly executed and registered. Or else if the seller has bought it from any UID or corporate instruments, there is a Conveyance deed. This deed also can be seen for confirmation. I want to say that, the person from whom you are buying the document should have the source of the document. So check if that document is valid or not.
Here, the important thing to note down is, that whenever you buy or sell the property then the General Power of Attorney (Aam Mukhtar Nama) is used to buy or sell which is illegal. In law, it is not permitted. Usually, while saving our stamp duty, we sell our property through GPA (General Power of Attorney), which is not valid. This means if you are buying property from someone who has GPA or has bought that property using it from someone, then don’t buy that property because the day when there is a dispute your property will not be considered valid. Supreme Court The landmark judgment named Suraj Lamp came and the supreme court clearly said that if doing any property transaction If not done through your registered sale deed or not through a registered gift deed So according to the law, we will consider it as non and wide. To do so is a crime, and it is illegal. So that’s why never buy a property through the power of attorney. So these are the important things about the first document.
The second document is the Channel Documents. It means when the property is sold from an ‘X’ person to ‘Y’ and from ‘Y’ to ‘Z’. So whenever this property is sold and a registered deed is made or any trial is made in which everything is checked in it. The property, the person sold to you, from where he got that property, and the person from he bought it from where did he from all these things are checked in it. That’s why you have to look at every channel document. If they got property from a will, then do that “will” have their name, or after getting the will, they have registered their name on it. There are many things that we have to look at in the channel documents.
The third most important certificate is the Encumbrance Certificate. This certificate tells you about the property which you are buying and has any mortgage, meaning if any bank loan is taken, or any tax is pending or has any penalty on it. Generally, we don’t look at this certificate and believe in anyone, but I request that whenever you buy any property, first, go to the registrar’s office and in Form no. 22, generally every state has a form no.22, but it also can vary, in form no.22 fill in all the details of the property. There are some fees charged by the government so pay those nominal fees and you will get all information about the property, who has bought it, who sold it, taxes on them, and any pending penalties or any type of mortgage or loan taken.
If there is nothing pending, then through form 15, you will get it back and if any taxes are pending they will give you information through the forms system. But there is one limitation. If the Department has no information available then they will not be able to provide the information. so, we can’t rely on it fully but for most things, if we try to obtain information about it, we can obtain it and will not suffer from any fraud.
One more thing, here Generally, we think that, do we need a lawyer. when we buy any land, here I will suggest that if you buy any big land where you’re investing more money then engage or hire a lawyer and say them to make a title search report. In the title search report, the income tax certificate is checked and they give you information about the land you are buying is free from taxes, penalties, etc.
Fourth is the Occupancy Certificate, it is not important that in every situation you will get the occupancy certificate, generally, if anyone buys land from a developer, then they get the occupancy certificate from a particular UID or the local government, that the building you have built is according to the sanctioned plan.
Fifth is the Possession Letter, if you are buying any flat then you need to look if that builder has the possession letter or not. This is given by the government when all the rules and regulations are followed.
Sixth is Mortgage, you have to look at that, the property you are buying has not kept any mortgage in exchange for a loan if there is a mortgage it is not useful at all. So, you have to check if it has a mortgage on it or not and for this, you can make a title search report through your lawyer or you can apply for an income tax certificate in the registry.
Seventh is Tax Receipt, Generally, on every land, the local municipality takes land taxes, you have to check that the previous owner has fully paid the taxes or not, It will save your liabilities and you will also know that in the local department who has the right over this property? So, if the previous owner is trying to do fraud with you so with the help of a tax receipt you can know right over this property.
The eighth is the Utility Bill. you have to look if the previous owner has paid all the utility bills.
Ninth is the Car Allotment letter, if you are buying any building like in metropolitan cities, there is a car allotment letter for parking the cars. So, you have to look for a car allotment letter and if it is not there then in future you may come across many problems.
The tenth is for the people who take any flat in a colony or building, where a Residential welfare association is available, so you have to look for NOC, if the previous owner has NOC or not because many times we don’t pay maintenance charges in society, and if that is not paid then the next the owner will have to pay that liabilities. That’s why important to look at whether our previous owner has NOC from the residential welfare association or not.
The eleventh document is a Mutation, (Jama Bandi). Although from the mutation document, we will not know who has right over the property it is a shred of additional evidence, you have to check if where ever you are buying the property, the government documents have the previous owner’s name registered or not, and when you buy that property register your name in it. This is called a mutation. To describe it, it means that in local records your name should be registered. means your name should be there on your property
The twelfth and one more important document is the Conversion Certificate, Generally, we say that There are two types of land – One is Commercial land and the second is Agricultural land, you cannot build any building commercially on Agricultural land, but if the person selling the property says that it is commercial land then you have to verify if that person has converted it too commercial from agricultural. If without ensuring it, you bought that property then you cannot use it commercially and if you want to use it you have to pay a hefty amount to the local department. so that it is converted to commercial from agricultural land. So, it is important to look at the conversion document.
So, there are these 12 documents, in which if you pay attention, then you will not be tricked by anyone and if you didn’t pay attention to it, there is a chance that you may get involved in court matters. Now you must have become aware, that whenever you go for buying any property, you will look for these documents.
