What legal documents do I need to prepare before buying a property?

Legal Documents to Consider Before Buying a Property

As a lawyer, I would advise that before buying a property, there are several legal documents that you need to prepare and review. These documents would help ensure that the transaction goes smoothly and that you avoid any legal pitfalls.

1. Sale Deed or Purchase Agreement

This document is the most important legal document while purchasing a property. It is a contract between the buyer and the seller, setting out the terms and conditions of the sale. The sale deed specifies the details of the property, amount of consideration, payment terms, time limit for payments, transfer of rights, warranties, representations, and indemnities provided by the seller.

2. Title Deeds

This documentation is proof of ownership of the property. It includes documents such as the title certificates, deeds of the property, encumbrance certificates, and any other relevant property records.

3. Property Tax Receipt

The property tax receipt is a payment that verifies that the previous owner paid all applicable taxes on the property.

4. NOC from the Society

If the property is situated in a housing society or a gated community, the buyer must obtain a No-Objection Certificate (NOC) from the society or community. This certificate confirms that the seller has paid all the dues to the society and there is no objection from the society to sell the property.

5. Building Approval Plan

A building approval plan is a document issued by the local government confirming the property's construction is in compliance with the building regulations.

6. Encumbrance Certificate

It is a certificate issued by the Registrar of property that reflects the encumbrances, charges, and mortgages against the property. This document ensures that the property is free of any legal disputes and objections.

7. Power of Attorney

If the buyer is purchasing the property through a representative, then a power of attorney is required. This document authorizes the representative to act on the buyer's behalf.

In conclusion, it is highly recommended to ensure that all necessary legal documents are in order before purchasing a property. It is always wise to seek legal advice at every stage of the purchase transaction to avoid any legal consequences or complications down the line.