Investing in property is always a very big decision as the amount involved is huge. This makes the investment very risky as fraudulent activities are prevalent in the property market. Therefore, one must make a thorough research before investing any property. There are several aspects to be considered which can be verified by the relevant documents.
Important Documents The Property Needs To Be Registered
1. Title Deed
The title deed is the most important document for consideration. Ask the seller for the title deed in original which proves the ownership of the property. It can have multiple owners listed. The title deed is required by the owner for transferring. Apart from the description of the property, it contains the rights and freedom of the owner in relation to the property and the names of the owners.
It is best to get the deed verified by an expert or lawyer. It also ensures that the property is not mortgaged to the bank. In such a case the buyer must get NOC from the bank before making payments to the seller.
A share certificate is required to ensure that the seller is the last name in the share certificate as recorded by the society. All the relevant documents must be verified in case the property has been sold multiple times. All the sale deeds must be present along with the stamp duties and registration payment slip.
Gift deed, inheritance document or wills paper must be checked if the property has been transferred by inheritance or by means of the gift. The encumbrance certificate is issued by the registering authority which shows if the property is the obligation of the payment of any debt. It is required to check the title clearance for the property. One can ask for encumbrance certificate for a period of thirteen years and it can be provided for thirty years also.
Torrence plan is needed for some areas only. It is a detailed plan of the property such as its accurate length, width, and boundaries etc. as recorded by a surveyor. Release certificate is issued by the bank if the owner of the property had pledged it for taking a loan. It ensures that entire amount has been paid back to the bank and there is no liability. It will also be required in case the new owner wants to take a loan. Release certificate or NOC is also required if the said property has multiple owners.
3. Property Tax Receipts
Property tax receipts are essential to ensure that there is no liability towards the government and all the tax has been paid by the owner. The owner of the property has to provide the property tax receipt which contains the name of the owner in one column and the tax-payers name in the other column.
4. Sales Deed
Sales deed or Sales agreement is the final agreement done between the buyer and the seller. It is drawn on a 50/- stamp paper and includes the final amount, advance payment, date of actual possession, time limit to pay the amount, number of installments for payment and the time when the actual sale will take place. It also mentions the course of action to be taken or amount of penalty to be applied in case of late payment. The agreement is drawn by an expert lawyer and is legally binding. It ensures that the seller does not change the price of the property and sell it to another person to make gains.
After checking all the documents, the property needs to be registered at the sub-registrar or sub-district magistrate else sales transaction will not become lawful.To know more visit Propknack