Buying a home in Bengaluru is no simple task. There are thousands of options available and each option seems better than the other. People who are buying a flat in Bangalore need to understand the different document involved while buying a flat.
But what are the documents to check before buying a flat in Bangalore? We have rounded up 10 main documents to consider before buying a flat in Bangalore.
Sale Deed
It is a legal document through which the property owner transfers property ownership rights to the buyer for an amount. It contains the property description, the rights transferred in it, and the amount paid by the buyer to purchase the property. It must be registered with the Sub-Registrar Office for it to be legal.
The title deeds of a property can be obtained from the property owner. The property owner will have the title deeds of the property. It can also be obtained from the Sub-Registrar Office, where the property owner registers the property in his/her name.
When the property owner has taken a loan on the property, the title deeds will be with the bank or the lender from whom the loan is obtained.
The other types of deed are: Gift Deed, Mortgage Deed, Lease/Rental Deed, Warranty Deed, etc.
Channel Document
A person has to go through the channel documents before purchasing a property. If a property is sold multiple times then, its details can be seen under channel documents. It tells the entire history of the property. For example, whether he got it through a will, it is registered under their name or not.
Encumbrance Certificate
Encumbrance certificate shortly called as EC is one of the most important documents to validate the title of a property. Encumbrance Certificate record assures that the property is free from any legal or monetary dues such as uncleared loans or mortgages. Thus an individual procures this document as an evidence of free title and ownership.
An encumbrance certificate records the following property-related details.
The certificate holds the name of the property owner
The Certificate usually pertains to a specific period, and transactions related to a property relevant to that period alone will be considered.
Those transactions and documents that have been registered with the office alone will reflect in the Encumbrance Certificate.
If no transactions have taken place within the period a Nil Encumbrance Certificate (NEC), i.e. an encumbrance certificate with no details of the transaction is issued.
In Karnataka, the applicant can obtain an encumbrance certificate in either offline or online mode. You can find more details here.
Link to apply for Encumbrance certificate here.
Occupancy Certificate
An occupancy certificate is a document that is issued by a local government agency or planning authority, upon the completion of construction of a new project. The certificate is proof that the project has been built, by adhering to the applicable building codes, relevant regulations and laws.
It is the responsibility of the developer to obtain an occupancy certificate, once the project has been completed. The certificate is an indication that the building is suitable for occupancy. An OC is required, when applying for water, sanitation and electricity connections.
You will require an OC, when you apply for a home loan, or if you are purchasing a resale property. You would also need a valid OC, when you wish to sell your property.
Allotment Letter
An allotment letter is a requirement to buy a property. The builder produces an allotment letter once the buyer books the home and receives it. The seller only gives it to the first owner; subsequent owners may request a replica of the original letter.
The builder will give the potential buyer an allocation letter if they purchase a property still under development. It is given once the purchaser pays the developer 15% of the purchase price. This letter is a verification that the property is allotted to you by the builder.
Tax Receipts
The property owner is liable to pay the tax levied by the local body such as the municipal body and such tax is known as the property tax. If the citizens do not pay the property tax then the municipal body might refuse to offer the services and might initiate some legal action to recover the due amount.
Property tax is calculated on the basis of the recent property valuation done by the municipal body. The only owner of the property is liable to pay the property tax while if you are a tenant then you need not worry about it.
In case of any dispute related to the property, receipts of property tax play an important role to prove the ownership of the property.
Completion Certificate
A completion certificate (CC) is another essential document issued by the local municipal authority. It is issued after completion of the construction work and after verifying that the construction complies with all the relevant building codes and regulations.
It is an acknowledgment that the construction work is completed as per the approved plans and specifications. A completion certificate is necessary as it certifies that the construction is completed as per the approved plan, and there are no deviations.
It also ensures the construction has been done as per the applicable laws and regulations. This certificate is essential for obtaining permissions like water and electricity connections, and for property registration.
No-objection certificates
No-objection certificates or NOCs are legal documents that one may require to carry out a large number of tasks. The importance of NOCs is, however, extremely crucial when it comes to property transactions.
Builders need a large number of NOCs to start a housing project; sellers also need NOCs to offload their property; homebuyers may also need certain NOCs to carry out property purchases.
This is why having a clear understanding about this highly important document is a must for anyone involved in a property sale or purchase.
A no objection certificate or NOC is a legal document that can be issued by any individual, authority, organisation, or institution, specifying that there is no objection to the details stated in the document.
Mutation certificate
Land mutation means the process of completing paperwork including title deeds under a local municipal office when a property gets sold or gets transferred to another name.
The property records are then mutated, and the new owner’s name is registered by the Land Revenue Department. According to the records of the department, the new owner will start paying property tax.
It is also important to note that the procedural change and all added charges during the mutation process differ from state to state in India.
The transfer of ownership for new owners of flats and apartments happens after the registration is completed. Since mutation is a legal formality, which can get done any time after the contract.
But, if one has to sell the apartment in the future, they would have to show the property mutation status for utilities such as water service and power.
Katha Certificate
Khata Certificate contains information such as the credentials of the owner, demarcations, location, carpet area, and the built-up area of the property. The Khata document is also used for the property tax payment and within Karnataka state, and majorly in Bangalore.
A Khata
This document denotes the proper tax payment by the owner to the BBMP. A Khata means that the property complies with all government regulations and property-related construction regulations in Bangalore.
The possession of the A-Khata document enables property owners to file for approval of the building plan, trade approvals, building licences, and bank loans for the property.
B Khata
This document signifies that the owner’s property in Bangalore is illegal or is in violation of government regulations. The property which is enlisted under B Khata will be denied loans, denied extension and construction permits.
The sale of such property is not possible as it is termed as illegal or semi-legal property. Also, obtaining the electricity and water supply to the property is very difficult for a B Khata property. On paying betterment fees and other penalties, B Khata property can be converted into A Khata.
Parking Allotment Letter
The parking spaces can only be allotted and not sold. Allotment done on first come first serve basis is not illegal. The members having allotment letters are entitled to a parking space on permanent basis.
Parking spaces allotted by the builder cannot be dissolved by the society. The society will have to seek a declaration of illegality of the allotment from the court. Before fresh allotments can be done the allotments already done would have to be cancelled by the court.