Buying a property for investment can potentially bring about significant financial rewards, and it is undeniably not an easy task. The process is long, tedious, and complicated. One must be extremely careful while going through all the paperwork. There are dozens of things to remember while investing, where property investment documents come into play. One should never close down a deal or sign before rechecking the essential documents. This blog enumerates a comprehensive list of property investment documents that you should check out before buying any property.
Check for the land title deed.
A land title deed is a legal document issued by the government under which ownership of a piece of land is transferred from one person to another. The seller should provide you with a copy of their land title deed when they sell you a property. You must check that: the seller owns the land and has the right to sell it, the name on the land title deed matches the name on your contract of sale, and the property does not have any restrictions on its use or development. This document proves ownership of the land and all buildings on it. A property investment expert can give you a vivid picture of the same.
Check for property tax receipts.
Always check whether the seller has paid all the property taxes or not. If they haven’t, make sure that they pay it before closing the deal, or else it could lead to trouble later on.
Check to see if any loans are taken against the property
When you’re buying a property, you need to make sure that no one else has a claim on it. If someone else has a mortgage on the property, they have legal rights over it. You should check to see if any loans are taken against the property. This could be a mortgage, personal loan, or even a hire purchase agreement (sometimes called ‘lease purchase’).
Check the building plan approval certificate.
The building plan approval certificate is a necessary document for buying a resale flat or any built property. This certificate confirms that the construction of the building was done according to the approved plan and design. The builder has to provide this certificate and the other documents when you buy a property. To gain more insight into building bylaws, you can refer to some property investment blogs online.
Encumbrance certificate of a property
An encumbrance certificate is an important document as it shows whether there are any financial or legal cases against the property or not. Encumbrance means any charge or liability that affects the property’s title like loans, mortgages, and other such things. If there are any encumbrances on your property, you will not be able to transfer them in your name. So, you must check for this certificate before buying a property to make sure that there are no hindrances in the future. If you are a new investor in real estate, you can always hire a property investment expert who will check these documents on your behalf.
It is always advisable to get a No objection certificate from housing societies or builders and all concerned departments of the civic body, such as health, fire safety, and building regulation departments. The NOC from the society or builder is required to ensure that there are no pending dues against the title or registered owner of the property and that there are no pending criminal cases filed against them.
Building Completion Certificate (BCC)
A building completion certificate confirms that the construction of the building has been completed according to the approved plans. The local body issues this certificate after verifying whether all rules and regulations have been complied with during construction. A buyer needs to check this document thoroughly before buying a property as it can save you from future hassles related to construction.
These are a few critical documents listed. However, some property investment blogs online will give you a comprehensive list of documents while buying a property.
The seller must provide all the relevant documents related to the property they are selling. This helps you make an informed decision and ensures that you are aware of any outstanding dues that may be due from the previous owners of the property. Always be aware and recheck twice before investing your hard-earned money!!