Purchasing a property is one of the most significant financial decisions in a person’s life. Whether it’s a residential or commercial property, ensuring that the property documents are in order is crucial to avoid any legal complications in the future. In India, property transactions are governed by complex laws, and there are several documents involved in the process. Verifying these documents before making a purchase can save you from potential disputes and financial losses.

In this guide, we will walk you through the essential steps to verify property documents and ensure a smooth and legal property purchase process. By following these steps, you can safeguard your investment and prevent getting involved in any legal cases related to the property.

1. Obtain the Title Deed

The Title Deed is the most important document when it comes to verifying property ownership. It signifies the current owner’s right over the property and proves that the property is free from encumbrances.

Key things to verify:

• Originality of the Title Deed: Ensure that the document is an original. If you receive a photocopy, verify it against the original document with the seller.
• Past Ownership Records: Check the chain of ownership to ensure that the property has been legally transferred from the previous owners. Any gap in the chain could cause issues in the future.
• Clear Title: The property should not have any legal encumbrances like loans, mortgages, or disputes. If the property is mortgaged, ensure that the mortgage has been fully cleared and the lender has given a no-objection certificate (NOC).

2. Verify the Sale Agreement

The Sale Agreement is a legally binding contract that outlines the terms and conditions of the property sale. It serves as a reference for both the buyer and seller regarding the agreed-upon terms.

Key things to verify:

• Validity of the Agreement: Ensure that the sale agreement is drafted according to the laws of the local jurisdiction and signed by both parties.
• Advance Payment Details: Verify the details of any advance payments made, and ensure that these are accurately mentioned in the agreement.
• Completion Date: The agreement should clearly state the timeline for the transfer of the property and possession.
• Stamp Duty and Registration: The agreement should include the stamp duty charges and the registration details, as these are essential for making the agreement legally valid.

3. Check the Land Records

Land records provide vital information about the legal status of the land. These records help in confirming whether the property in question is legally registered and free from encumbrances.

Key things to verify:

• Khata (Title Record): This document confirms that the property is registered under the name of the seller. It is essential for both urban and rural properties.
• Mutation Record: This is a process where the title of ownership is updated in government records. You must verify if the mutation has been done correctly and is up-to-date.
• Online Records: Many states in India offer online access to land records, so it’s easier than ever to verify property details before making a purchase.

4. Check for Property Tax Receipts

The payment of property taxes is an indication that the property is legally recognized by the local municipal authorities. Property tax receipts are essential to verify whether the property is free from dues and is not involved in any legal disputes.

Key things to verify:

• Payment Status: Ensure that the property tax payments are up to date and there are no outstanding dues.
• No Objection Certificate (NOC): In some cases, you may require an NOC from the municipal authority confirming that there are no unpaid dues related to the property.

5. Verify the Encumbrance Certificate (EC)

The Encumbrance Certificate is a legal document that serves as proof that the property is free from any legal liabilities or disputes. It is one of the most critical documents when buying a property.

Key things to verify:

• Current Status: The EC should indicate that the property is free of mortgages or loans, which means the seller has the legal right to transfer the property to the buyer.
• Period of the EC: Request an Encumbrance Certificate for the last 13 to 30 years to confirm that the property has not been involved in any legal disputes.

6. Verify the Occupancy Certificate (OC)

The Occupancy Certificate is issued by the local municipal authority to confirm that the property complies with building regulations and is fit for occupation.

Key things to verify:

• Compliance with Local Regulations: Ensure that the property has been constructed according to the building codes and regulations of the area.
• Authorized Construction: Verify that the property is built with the necessary approvals from local authorities, and there are no unauthorized structures or violations.

7. Check the Approved Layout Plan

Before purchasing any property, it is essential to ensure that the layout plan of the property is approved by the local municipal authority. This plan ensures that the property is constructed according to the approved designs and regulations.

Key things to verify:

• Approval from Local Authority: Verify that the layout plan has been approved by the local municipal authority or the relevant urban development department.
• Land Use Permissions: Check if the land is designated for residential or commercial use as per the local zoning laws.

8. Ensure Compliance with RERA (Real Estate Regulation Act)

The Real Estate (Regulation and Development) Act, 2016, is a key law that governs the sale of properties in India. Under RERA, all developers are required to register their projects before advertising or selling properties.

Key things to verify:

• RERA Registration Number: Verify that the builder or developer is registered under RERA, and the project has an RERA registration number.
• Project Details: Ensure that the details of the project, such as completion date, layout plans, and approvals, are in compliance with RERA norms.

9. Verify the Power of Attorney (PoA)

In some cases, a property is bought or sold through a Power of Attorney (PoA), where a representative signs the documents on behalf of the owner. Before proceeding with such a transaction, it is essential to verify the validity of the PoA.

Key things to verify:

• Originality of the PoA: Ensure that the PoA is signed by the rightful property owner and is duly registered with the appropriate authorities.
• Scope and Limitations: Check the scope of the PoA to ensure that the person holding it has the legal right to sell or transfer the property.

10. Consult a Property Lawyer

Lastly, it is always advisable to consult a qualified property lawyer who can help you verify all the legal documents and provide expert advice. A lawyer will be able to scrutinize the documents in detail and help you avoid any legal pitfalls.

A property lawyer can also assist in:

• Drafting and reviewing the sale agreement.
• Conducting a title search to ensure the property is free from encumbrances.
• Handling the registration process and ensuring all formalities are completed according to the law.

Conclusion

Buying a property is a substantial investment, and verifying the legal documents is essential to ensure that you are making a safe and legitimate purchase. By thoroughly checking the title deed, sale agreement, land records, tax receipts, encumbrance certificate, occupancy certificate, and other relevant documents, you can avoid legal disputes and ensure the transfer of a clear and marketable title.