what documents needed for lawyer when purchasing property

Legal Documents Required While Buying Property

1. Title Deed. It is one of the most pertinent things to check for. As we all know, nobody can transfer better title...
2. Encumbrance Certificate. It is imperative to know whether the property is free from any legal dues whatsoever. Like...
3. Master Plan. More often than not you will come across sellers or builders of...

Full Answer

What documents are needed to buy a property?

These are some of the documents you may need: Earnest Money Agreement — An Earnest Money Agreement provides the seller with an assurance that you intend to purchase... Real Estate Purchase Agreement — When you make an offer on a house, you may need to …

What kind of paper do I need to buy a house?

Documents in the Offer/Acceptance Process You must write up a formal offer to get the negotiation process started. The proposal will include vital information, such as: the total purchase price, the initial good-faith earnest money to accompany the offer, how the remaining purchase price will be paid, details on closing and possession, and

What do you need to make a property purchase decision?

Sep 16, 2018 · Buying property is a big deal — regardless of being for commercial or residential purposes. It’s important ... the surveying documents, the property inspections, and; ... you need to consult a real estate lawyer who will take the time to explain the steps, take care of the paperwork and the title research, and go through the proper due ...

What are the documents required to sell a house in India?

Oct 21, 2021 · Sale deed. This is the most important piece of paper required for property purchase. Sale deed has to be produced in... Extracts. Khata certificate or extract is known by different names in different states and is an important document for... Mutation register extract. This specific document is for ...

What documents should property buyers check?

Property buyers should thoroughly examine all the documents that establish the identity of the seller and the verification of the property in quest...

What documents confirm seller's identity?

Documents that establish the identity of the seller include his passport, Aadhaar card, PAN card, etc.

Is hiring a lawyer necessary for property verification?

While buyers can examine property documents on their won with due care, it would be ideal to seek legal assistance to keep the transaction error-free.

What document proves property ownership?

The title deed, proof of property tax payment/utility bills payment, gift deed (in case of gift), will (along with probate) in case of inheritance,...

What if a flat is not registered?

One is required to register the property after the transaction has been completed and other charges have been paid to the builder. Without the prop...

What is a non-encumbrance certificate?

Non Encumbrance Certificate. If the property is under a mortgage, it is better to resolve the matter beforehand. This document checks whether the property has any claim on it or if any mortgage is present. In many cases, people take bank loans to purchase land and the land becomes an asset backing the mortgage.

What is a CS survey?

They mostly include a CS (Cadastral Survey), a RS (Revisional Survey), a SA (State Acquisition) and a City Survey. CS and RS vary from property to property as they are two methods of the same survey where CS is the old version. But if your property has both, it is wise to check them for your own benefit.

Is land an asset in Bangladesh?

Assessing legal documents is a part of the safety measures in order to avoid future hassles. In Bangladesh, land is a popular asset ...

What is a mutation in Khatiyan?

The replacement of title of the previous owner with the new owner is called a Mutation and it should appear on Khatiyan. It is a must among the documents required for land registration and property transfers. Because without the Mutation, the previous owner might claim ownership or transfer ownership to others. And if you are purchasing the property, without a Mutation, you cannot claim it as your own either. Hence, it is very important to check the Mutation history of the property.

What documents are needed to transfer a property?

The property transfer will require the following documents: The deed – A deed legally transfers the property from the seller to the buyer. You can choose the type of ownership you take, including individually, in trust, in joint tenancy, or other forms of tenancy.

What is a seller disclosure statement?

The seller disclosure statement – One such document is the seller disclosure statement. This report provides a summary of the seller’s knowledge of the property. It will include information about prior work done to the home, potential problem areas, and any updates or construction that was performed on the home.

Why do you check your credit score?

One of the most important reasons to check your credit score is to ensure that the information on the report is accurate. Inaccurate information can result in a much lower credit score. If you have a dispute, you should take care of those issues before you begin the mortgage application process.

What is a pre-approval letter?

Getting your pre-approval letter is one of the first steps in the home-buying process. Your financial institution will require extensive information about your identity and finances to obtain this letter. The pre-approval letter provides you with preliminary approval for a set amount of financing for your home.

How often can I get a free credit report?

You can get a free credit report once a year from AnnualCreditReport.com. Other sites offer less complete information regarding your credit score that you can check more often as well. Regardless of how you check your report, you should.

What happens if a seller rejects an offer?

The seller will then respond with either an acceptance or rejection of your offer. If they reject your offer, they may provide a counter offer as well. Regardless of how the seller responds, they should do so in writing.

Should I look at my credit score before applying for a mortgage?

If you are financing your home—and the vast majority of first-time homebuyers will—you should take a look at your credit information before you begin applying for mortgages or even considering houses. Your credit score will have a profound impact on your ability to obtain financing, so it is important to know where you stand before you get the process started .

What is a receipt for property tax?

Latest tax paid receipt: Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the government/municipality. For properties falling under the BBMP jurisdiction, it is mandatory for property taxes to be paid up to date so a buyer could get a Khata issued in his name.

What is a sale deed?

A Sale Deed is the core legal document that acts as proof of sale and transfer of ownership of the property from the seller to the buyer. A Sale Deed has to be mandatorily registered. It is important that before the Sale Deed is executed one should execute the sale agreement and should check for compliance of various terms and conditions as agreed upon between the buyer and the seller. Before executing the Sale Deed, the buyer should check whether the property has a clear title. He/she should also confirm if the property is subject to any encumbrance charges.

What is a khata extract?

Khata Extract is nothing but obtaining the property details from the assessment registrar. It is needed while property buying and acquiring trade license. The Khata is widely referred to as A Khata and B Khata (Revenue records extract).

What is EC in real estate?

Encumbrance means charges in the ownership or liabilities created on a property that is held against a home loan as security. An EC consists of all the registered transactions done on the property during the period for which the EC is sought. Simply put, it is a certificate sought for a particular period evidencing the property purchase/sale, the presence of any transaction or mortgage. One should submit a copy of the Sale Deed to obtain an EC. A person applying for an EC should fill in the Form 22, affix a non-judicial stamp and submit it to the jurisdictional sub-registrar’s office. Complete residential address, property survey number, property location, the sought period, property description, its measurements and boundaries should be mentioned in the Form. A nominal fee amount will be charged on a yearly basis. The time taken to obtain an EC will be between 3-7 working days or more depending on the period sought.

What is betterment charge?

Betterment charges are also known as improvement fees/development charges that are to be paid to the BBMP before a Khata can be issued. Currently the developers are entitled to pay a fixed amount as betterment charges to the municipal body. A receipt of the same should be obtained at the time of property buying. 9.

What is a POA?

Power of Attorney (POA): A POA is a legal procedure used to give authority to another person by the property owner on his/her behalf. One can either give a Special Power of Attorney (SPA) or a General Power of Attorney (GPA) to transfer one’s rights over one’s property. 10. Latest tax paid receipt:

What is a commencement certificate?

A Commencement Certificate is a legal document issued by the local authorities (BDA/BBMP & alike) after the inspection of the site. This document states that project meets the give criteria and helps in the commencement of a construction on a site by the builder.

What to consider before sealing a deal?

There are several things to consider before sealing the deal: the title search, the conditions of the property, the inspections, and the zoning rules. Additionally, there are numerous federal laws regulating various factors like the property survey, mortgages and other loans, insurances, and taxes.

Why is due diligence important in real estate?

One of the primary reasons why preliminary due diligence is important in commercial and residential real estate transactions is so that the buyer can properly analyze the property’s value to create an offer strategically. Plus, no one wants to be surprised by the home being out of the price range.

What is title review?

Title Review. The title review should be the first item on your due diligence checklist. The title is the transferable legal right to the property. Note, the title review isn’t the same thing as the deed. The deed refers specifically to the document used to transfer property.

How long does due diligence last?

The due diligence period will typically last anywhere from 30 days after closing to more than 9 months after. The safest bet is to complete your due diligence duties before the closing. Remember, if you want to build a bar, you don’t want to buy property in a zone that forbids alcohol sales.

When should due diligence begin?

The due diligence period should begin before signing the contract but usually won’t begin until an offer is made. Once the offer is made, the due diligence period has absolutely begun, so you can begin reviewing the relevant documents and scheduling inspections. Examples of relevant documents are:

What is the fifth item on a due diligence checklist?

Completing proper environmental inspections should be the fifth item on your due diligence checklist. Environmental inspections are also imperative, especially for commercial properties with occupants that might purchase large quantities of environmentally harmful products. It’s possible that the property sustained previous environmental damage, and this may affect your intended usage.

How old should a survey be for a house?

For residential real estate, the surveys should be as recent as possible. Many lenders won’t honor a survey that’s more than 6 months old. Most residential real estate purchasers will use the less expensive option, house location surveys.

Where to register a sale deed?

Sale deed has to be produced in original as it establishes the ownership of title of the property. You need to register the sale deed in the Sub- Registrar's Office of the area where the property is located.

What is a power of attorney?

General power of attorney. This document is required to prove whether the sale or purchase of a particular property is being done by an authorised person on behalf of the owner of the property. This has to be produced in original for getting a home loan.

Do property owners have to pay taxes?

Property owners have to pay taxes. Ensure that the previous occupier/owner had paid property taxes and there are no pending due. Property tax receipts also help in proving the legal status of the property.

What is an allotment letter?

Allotment letter. An allotment letter is one of the most important documents required for getting a home loan. It is issued by a developer or the housing authority, stating the description of the property and details of the amount paid by the buyer to the developer. Do keep in mind that an allotment letter is not the same as an agreement of sale.

What is an encumbrance certificate?

Encumbrance certificate. An encumbrance certificate is required to prove that the property does not have any pending legal dues or mortgages. This is one of the key documents banks ask for before they grant you a loan. This certificate also has all the details related to the transactions happened over a period of time.

How many NOCs are there?

No-objection certificates (NOC) There are as many as 19 NOCs that have to be acquired by a developer from different authorities while building a housing project. However, the number may vary according to specific state rules. Ask your developer to provide you the copies of these NOCs, and keep it in your personal record.

Hire A Good Lawyer

So I got in touch with a lawyer and asked his opinion. He gave me a list of documents that I needed to furnish from the seller, he would be checking them and give me a written opinion that the documents are in order and hence a go ahead to buy the property.

Ensure A Clear Title

This is the most important aspect to be considered before buying a house. If you are buying a house on a leasehold land or land owned by government, you need to obtain a no- objection certificate from the authorities. To get such a certificate, you may have to pay prescribed fees, which will further inflate the consideration for the property.

How to prove that a property does not have dues?

Another vital document to verify that the property does not have any dues is the encumbrance certificate. An encumbrance certificate proves that the property has no monetary and legal liabilities. The certificate can be easily obtained from the sub-registrar’s office where the property has been registered.

Who issues possession certificates?

Possession certificate is issued by the builder to the first owner. You must also attain possession papers if you are planning to buy a resale unit. This document is not re-issued at the time of resale; however, the seller would hand over to the buyer.

What is a sale deed?

A sale deed is the first document to verify while buying a resale unit. It is considered as the core legal document which acts as a proof of sale and transfer of the property. Make sure that you read the fine print and question all terms and conditions before signing the sale deed.

What is a building plan?

Building plan. A buyer must check whether the property has a sanctioned building plan or not. Usually, a building plan is approved by the local municipal authority. The building plan includes a blueprint of the property, equipment layout, and utilities.

What is a CC certificate?

A Completion Certificate (CC) is issued by the municipal authorities on the completion of the project. Meanwhile, an Occupancy Certificate (OC) is issued by a local government agency once a project is completed and deemed fit for habitation. Such certifications indicate that the property has been built in sync with the approved layout and other laws. Both these documents are required while availing loans from banks and financial institutions or while applying for water, sanitation, and electrical connection.

Is buying a house a daunting task?

Buying a property is a daunting task. A homebuyer must be well acquainted with all obligations revolving around buying a property especially a resale one. A resa le property has always been considered as a sound purchase for end use or investment purpose .

What is title deed?

Title Deed. Verifying the title of the seller is a very important and first task in your search for a property. Title is the legal way of saying you own a right to something. For real estate purposes, Title refers to ownership of the property , meaning that you have the rights to use that property. Deeds, on the other hand, are actually ...

What is an encumbrance in real estate?

An encumbrance is a legal claim on a property that affects the owner’s ability to transfer the ownership of the property. Encumbrance means whether the properties have any lien on them, whether attached by the court, whether mortgaged or sold etc. by the owner of the said properties.

Why is an encumbrance certificate important?

An encumbrance certificate is important not only while buying a property but also when you are applying for a home loan or going in for a loan against the property. Mutation is the change of title ownership from one person to another when the property is sold or transferred.

What is an EC certificate?

Encumbrance Certificate (EC) One of the important property documents that you need to apply and verify is ‘Encumbrance Certificate’ or popularly known as the EC. The dictionary meaning of the word encumbrance is, ‘a claim on property or assets’ or ‘a mortgage’.

What is mutating a property?

Mutation is the change of title ownership from one person to another when the property is sold or transferred. By mutating a property, the new owner gets the title of the property recorded on his/her name in the land revenue department and the government is able to charge property tax from the rightful owner.

What does RTC stand for in agriculture?

RTC stands for Record of Rights, Tenancy and Crops (RTC). RR stands for Record of rights.

Is buying a house in India easy?

Whether you are a first-time property buyer or an experienced owner, buying a real estate property in India is not an easy task. It requires good amount of homework from your side and you need to verify a lot of important property documents. While requirements may vary depending on your state, there are a few general and important documents ...