Documents to Check Before Buying a Flat from a Builder

Buying a flat is a significant milestone for many, but it’s also a complex process that requires due diligence to avoid future complications. Builders often advertise attractive deals, but as a buyer, you must ensure that all necessary documents are in place and authentic before finalizing your purchase. Below is a detailed guide to the critical documents you need to check before buying a flat from a builder.

1. Title Deed

The title deed is the most crucial document to verify the builder’s ownership of the land on which the project is being developed. Ensure that the builder has a clear and marketable title and the deed is free from any legal encumbrances. Hire a legal expert to verify the authenticity of the title deed and check whether the land belongs to the builder or if it’s leased.

2. Encumbrance Certificate

An encumbrance certificate ensures that the property is free from any monetary or legal liabilities. This certificate provides a record of all financial transactions related to the property, such as mortgages, loans, or liens. Request an encumbrance certificate from the local sub-registrar’s office to confirm that the land has no pending disputes.

3. Approved Building Plan

Check the builder’s approval for the building plan from the local municipal authorities. The approved plan ensures that the construction adheres to local laws and regulations, including height restrictions, floor area ratio, and permissible land use. Any deviation from the sanctioned plan could result in legal actions and potential demolition.

4. Commencement Certificate

A commencement certificate is issued by the local authority after verifying that the builder has obtained all necessary approvals, including environmental clearance and zoning clearance, to begin construction. Ensure the builder has this certificate before making any payments.

5. RERA Registration

Under the Real Estate (Regulation and Development) Act, 2016, it is mandatory for builders to register their projects with the Real Estate Regulatory Authority (RERA). Verify the project’s registration on the RERA website to ensure that the builder complies with transparency norms. This will also provide details about project timelines, specifications, and the builder’s past projects.

6. Sale Agreement

The sale agreement outlines the terms and conditions of the sale, including the total cost, payment schedule, possession date, and penalty clauses for delays. Read the agreement carefully and ensure that all terms are fair and mutually agreed upon. Consult a lawyer to clarify any ambiguous clauses.

7. Allotment Letter

The allotment letter is issued by the builder to the buyer after the initial payment. It contains details about the flat, including its number, size, floor, and payment schedule. Ensure that the allotment letter matches the terms of the sale agreement.

8. No Objection Certificates (NOCs)

Builders are required to obtain several NOCs from various departments, such as:

• Fire Safety Department: Certifies that the building meets fire safety norms.
• Water and Sewage Department: Ensures proper water and sewage connections.
• Electricity Department: Confirms the availability of electricity supply.
• Environment Department: Certifies compliance with environmental laws.

Ask the builder for copies of these NOCs to ensure the project’s compliance with regulatory norms.

9. Occupancy Certificate (OC)

The occupancy certificate is issued by the local municipal authority after the construction is completed. It certifies that the building is fit for occupation and complies with all statutory regulations. Do not take possession of the flat without this certificate.

10. Possession Letter

The possession letter is a document issued by the builder to the buyer, stating the date on which the flat will be handed over. Ensure that the possession letter specifies the agreed-upon date and that the builder adheres to it.

11. Property Tax Receipts

Ask the builder for the latest property tax receipts to ensure there are no pending dues. Unpaid taxes can lead to legal issues and additional costs for the buyer.

12. Home Loan Documentation

If you are availing of a home loan, ensure that the bank has verified all documents related to the project. Banks usually conduct their due diligence before approving loans, which adds an extra layer of security.

13. Completion Certificate

The completion certificate is issued by the local authority once the construction is completed in adherence to the approved plan. This document is crucial for registering your property and obtaining basic utilities like water and electricity.

14. Carpet Area Certificate

Builders often advertise the super built-up area, which includes common spaces like staircases and corridors. However, the carpet area (usable area within the walls) is what matters. Ask for a carpet area certificate to avoid discrepancies.

15. Legal Clearances for Amenities

If the project includes amenities like a clubhouse, swimming pool, or gym, ensure that these facilities have the necessary approvals and are not built on reserved land.

16. Deed of Declaration

The deed of declaration is registered under the Apartment Ownership Act and outlines the builder’s responsibility to form a society or association for managing the property. Verify this document to understand your rights and responsibilities as a member.

Purchasing a flat from a builder involves a substantial financial investment and a commitment to your future. By thoroughly checking these documents, you can safeguard yourself from potential legal issues and ensure a smooth and secure transaction. Engage a qualified legal professional to help you with document verification and avoid taking shortcuts. A well-informed decision will not only give you peace of mind but also ensure a hassle-free home-buying experience.