9 Documents You Need to Consider While Buying a Property in India

by | Mar 31, 2022 | Real Estate | 0 comments

Property Purchasing involves a lot of documentation processing. From home loans to property registration, you would always need to carry a few essential documents while purchasing a brand new residential property. Besides that, you will also have to go through many documentation processing to establish your legal claim over your desired property. Read this article to know more about the essential documents and the documentation processing you would require while buying a residential and commercial property in India.

The Premise-How Documentation has Become a Priority While Buying a Home in India?


Buying a residential property in India has always been a complex affair. But in recent decades, the exponential rise in property prices has made home buying a more distant dream. In the old days, your long term savings were sufficient to buy residential flats, houses, villas and apartments.

But nowadays, the average market price of residential properties is rising so exponentially that your entire life savings would probably not be good enough to go for an outright purchase.

It is almost unimaginable to buy a property without a home loan in today’s hyperinflated economic era. Besides that, loans are a more convenient and profitable option, as the home buyers do not have to pay the entire payable amount in one go.

On top of that, home loans are also available at cheap interest rates, and you, as a smart buyer, can take the leverage of it by applying for a tax deduction based on the interest you pay for your home loan.

And perhaps that is why more and more home buyers in India prefer to buy their dream properties through home loans rather than paying a huge chunk of payment directly. However, even if you have enough money, you should not go with direct and outright purchases, as it will create unnecessary financial stress and a burden on your shoulders.

So today’s most fundamental challenge for a prospective home buyer is not to arrange the entire payable amount. But it is more about collecting enough money so that they can at least pay off their home loan dues and maintain other allied expenditures such as registration charges, maintenance charges and charges related to deductible tax applicable on the source and statutory duties.

In India, many new home buyers are completely unaware of how to apply for a home loan or, for that matter, even the necessary documents that are mandatory while applying to the respective issues. But to apply for a home loan, you also need to carry a few essential documents without which banks would not even process your application.

Essential Instruments for Property Documentation


Deeds that Establish Your Claim:

  • Sale deeds or what is also known as title deeds or conveyance deeds, are a set of essential documents that you must acquire while going through the selling and purchasing processes.
  • They are important for both property buyers and sellers. If you are a buyer, these deeds would legally establish your ownership rights over a purchased property.
  • And, if you’re a seller, these documents would validate the fact that you are the rightful owner, one who is only eligible to sell that respective property.
  • It would help if you always preferred to obtain a registered sales deed issued and registered by the sub-registrar’s office.


Get Information from Mutation Register

  • Before you finalize your deal and buy a residential property, you must extract all the necessary and legal information about the last and present owner, their mode of ownership, modes of purchase, land or property configuration and type of the land.
  • Consult a field expert from a mutation register that contains data related to these essentials mentioned above.


Government Approved NOC Certificate:

  • A NOC or No objection certificate is a vital property document that shows you have zero statutory dues left on your property.
  • It is a legal assurance that your property is regularized and does not face any legal dispute, demolition or acquisition as well.
  • Get a NOC for your property. Visit the relevant government department to get the issues as soon as possible.


House & Property Tax Documents & Tax Receipts

  • Ask your seller to produce at least one photocopy of the last five years of tax receipts and bank statements related to house tax and property tax payments to ensure that the property has no previous house and property tax dues.


General Power Of Attorney or GPA

  • Suppose the last or last to last sale/purchase of the concerned property has been done by a person with the legal authority of GPA. Then you need to ask your property seller to bring the original copy and a photocopy of the GPA while inking the property deal.
  • The GPA would ascertain that the person selling the respective house or a piece of land or who had sold the same in the last or last to last transaction is/was an authentic person and has all the legal rights and authorization to do so.


Most Essential Personal Documents

  • The three most essential documents you must bear while buying a property are the Aadhar Card, the Pan Card, and the Voter Identity Card.
  • In India, buyers and sellers would also have to produce their Permanent Residentship certificate or PRC and birth certificate while inking a property deal before the judicial magistrate.


Check out the Building Plan & Layouts

  • Please look at the original copy of the respective building plan before purchasing it. It will help you understand whether the building is constructed according to the approved plan or if it has some flaws within it.
  • Consult an experienced civil engineer and ask him to find out if the builder has escaped some code of construction.
  • Also, you can ask your builder or the seller to provide you with a copy of the building layout. It would allow you to ascertain the authenticity of the builder.


Acquire the Allotment Letter

  • While purchasing a property in a residential society or from a real estate builder, you should always obtain the allotment letter ASAP.
  • An allotment letter is a legally binding document that shows the data about the paid amount and the outstanding amount of money you need to pay to the builder or the society on account of this property deal.
  • An allotment letter would also ensure your possession rights over the property and that it has already been allocated to you for living.


Document of Selling-Agreement

To make sure that the deal is respectfully agreed by both the parties and equally binding to the seller and buyers, you need to ink down an agreement to sell. It will be drafted on stamp papers and will be acknowledged by the sub-registrar.