When someone is ready to purchase a property, they must verify certain documents related to the building’s construction. Some of these documents are legally binding, some are not, but most are for approval or to track status. So, if you are getting ready to put a deposit down towards your dream house or property, be sure to check and verify the following documents beforehand –
1. MahaRERA Registration Certificate:
For properties within Mumbai, and particularly for Pune, a property must be registered at the official RERA website, and all the required information must be provided there. Registration on the website assigns a property its identifying RERA number, which remains valid even after construction is complete. It will include all information about the building, from plans to any changes to plans, and the materials used in construction, covering the entire building.
2. Commencement Certificate:
This is the certificate that developers or builders must get before they start putting even two bricks together. This certificate is proof that all legalities have been cleared with the city municipality, that all prior inspections have been completed, and that everything has been found satisfactory. Commencement certificates are allowed only after it has been confirmed that the project’s plan complies with regulations and after the required sanctions have been obtained. This is to prevent illegal construction and to avoid having to demolish anything.
3. Sanctioned Plans And Layouts:
These are the official, legally approved blueprints for a construction project, authorised by local municipal bodies, to ensure that everything complies with the zoning laws, safety regulations, and building codes, wherever applicable. These plans include site plans, structural designs, and service plans. They may also include projections of what the property will look like after completion. Any changes herein must be promptly rectified in the records.
4. Clear Land Title/Deed/Certificate:
The land on which the construction is being done has to have an owner. This owner may be the developer, builder, or a third party who sold it to them. As a buyer, it is of utmost importance to ensure that the land title is clear and lists the builder or developer as the owner, so that there are no long-term repercussions of a contested ownership claim to hound the buyer. A clear land title or deed is also crucial if the buyer intends to purchase the property as an investment and resells it later. A clear land title also means that not only does the buyer own the property, but also has a standing claim to the land on which it was built.
5. Encumbrance Certificate:
This is a certificate that states that a property is free from any legal, monetary, or mortgage liabilities. This is to ensure that there is no burden on the buyer with this purchase to rectify what the builders or developers did wrong, and that they don’t have to pay any price for the developers’ fault. This is also helpful in the event of any delay in construction, mismanagement of funds, or a stoppage or pause in construction, giving the buyer the power to pursue this legally and recover their due in court. This certificate is vital for buyers who have taken on newer builders.
6. Agreement For Sale And Allotment Letter:
An agreement for the sale of property is a document that is drafted to clearly state a seller’s and buyer’s willingness to sell and buy property. This document will lay out all the details of the purchase, including approvals from local bodies, official permits for water and electricity, and environmental clauses. An Allotment letter, on the other hand, will be another document that contains details on the terms of booking, payment, and unit details. This is the paper that will be handed to you at the time of booking the apartment or property and will serve as solid proof of your lien on that.
7. Escrow Account:
Ensure that the builder or developer has an escrow account that will hold 70% of the funds for the construction before construction itself starts, so that no problem arises with money flow. A pause in incoming funds will halt construction and may even lead to the project’s abandonment. Thus, having the details of the escrow account and the willingness to show the entire account as it pertains to the project the buyer is interested in is essential for the buyer to access and check for themselves.
8. Tax Receipt and Title Report:
Every property that falls under the purview of the municipality has to pay a property tax on time to maintain the permanent ownership of the property. As a potential buyer, one must always check recent tax receipts to ensure that property taxes are up to date and that no late payments or back drafts can affect future buyers. Another important document to review is the title record, which concerns both the land and the property. A proper title report will have everything cleared in the case of a good property with excellent resale value.
The above are the most important documents that must be checked before a purchase is made, and definitely before the booking amount is deposited. It is the buyer’s responsibility to check these things to ensure that the house or apartment they are buying is legally and properly owned.
If you are planning to invest in 2 bhk flats in Pune, make sure you carefully verify all these documents before paying any booking amount. Take full responsibility for due diligence to protect your investment and ensure the property is legally and properly owned. Don’t rush the process—review every detail, consult a legal expert if required, and move forward with complete confidence when purchasing your dream home.
