Choosing the right time, right builder and right location to buy a new house are relatively easy things. What most buyers find difficult is completing all legal formalities correctly. Often, they are not aware of what legal documents and letters they should demand from the buyer. We have compiled a list of the important documents one must insist upon:

RERA Registration

RERA has mandated that developers must register their projects with the concerned authority under the Act. The buyer must, hence, verify if the project has been registered under RERA by verifying the RERA registration number.

Approved building plan

Whether one is buying a private house or a house in a large residential project (while it is still under construction), the project building plan should be approved by the concerned local body- a municipality or an urban development body. This approval must be in place before the commencement of the building's construction. It is equally important to check that the finished building is in accordance with the approved plan.

NOC

Buyers must check if the land had earlier belonged to the Collector. In this case, developers will have to procure a 'No-objection Certificate' from the collector.

Environment Clearance

It is important to find out if the project is being made in a coastal zone or other similarly environmentally significant/sensitive areas. In such cases, it is mandatory to get clearance from the state environment department. Otherwise, the construction will be considered illegal.

Commencement certificate

Buyers must make sure that a commencement certificate was sanctioned for the project after verification of all approvals. Commencement certificate is important since without it the construction can be deemed illegal.

Completion certificate

Some buyers may choose to buy completed constructions which are ready for occupation. This seems like a better idea since competed projects involve zero GST. However, before investing in such a property one must ensure that the building has its completion certificate sanctioned and in place.

Allotment Letter

In terms of documentation, this is also one of the many important documents that buyers must check. This letter must have all details- project name, address, apartment number etc.

Sale Agreement

As a thumb rule, all home-buyers must read the sale agreement carefully and must pay special attention whether all price-related issues in terms of compensation for delays are mentioned in the agreement. Buyers must check other details like the address, floor, personal details etc.

Original Sale Deed

Home-buyers must ensure that the sale deed is executed in their name. This deed mentions the share of land/constructed area sold to him, the price of the area, right to common areas etc. It is the duty of the developer to execute the sale deed and hand over the original copy of the same to the buyer.

Possession certificate

Buyers must make sure that they are handed over the possession certificate, which means that the house has been formally handed over to them. A possession certificate signals the completion of the project, according to what the developer had committed.

Occupancy Certificate

This is an important certificate as it signifies that the construction of the building is complete, and the same has been sanctioned by the local municipal body. An OC is representative of the fact that the house/project is ready to be occupied. Absence of an OC means the project has not been passed by the municipal corporation.

Title documents

Buyers must check all title documents, especially if they're investing in an incomplete project which is under construction. They must verify from the developer if the land is under leasehold title, freehold title or has development rights. They must verify if the khata is registered in the name of the developer. The developer must have with him all original title documents.