What are the legal documents in property buying
Buying property involves several key legal documents that ensure the transaction is legitimate and protects the rights of both buyer and seller. Here's a detailed overview of the essential legal documents involved in property buying:
- An LOI outlines the preliminary understanding between the buyer and seller before finalizing the deal. It includes the basic terms and conditions of the sale, such as price, payment terms, and any contingencies.
- This legally binding document details the terms and conditions of the property sale, including the sale price, payment schedule, possession date, and the obligations of both parties. It is crucial for securing the rights and responsibilities of the buyer and seller.
- The most important document in a property transaction, the Title Deed transfers ownership of the property from the seller to the buyer. It must be registered with the local land registry to be legally binding.
- This document traces the ownership of the property through the various previous owners. It is essential to verify the legal ownership history and ensure there are no disputes or encumbrances on the property.
- This certificate confirms that the property is free from any legal liabilities or encumbrances, such as outstanding loans or mortgages. It is crucial for ensuring the buyer gets a clear title.
- Receipts for property taxes paid by the previous owner are important to verify that there are no outstanding dues on the property.
7. Occupancy Certificate (OC):
- Issued by the local municipal authority, the OC certifies that the building is complete and fit for occupancy. It ensures the property has been constructed in compliance with the approved plans and local laws.
- This document contains the approved layout and building plans sanctioned by the local municipal authority. It ensures the property is constructed legally and adheres to zoning regulations.
- This letter, issued by the builder or seller, confirms the date of possession of the property by the buyer. It is usually provided after the completion of the construction and before the Sale Deed is registered.
- Issued by the local municipal authority, this certificate confirms that the property construction is complete and adheres to the approved plans and regulations.
11. No Objection Certificate (NOC):
- A NOC may be required from various authorities, such as the municipal corporation, water, and electricity departments, ensuring there are no objections to the transfer of property ownership.
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- If the buyer or seller is unable to be physically present for the transaction, they may appoint a representative through a Power of Attorney to act on their behalf. The POA must be legally registered and specific to the transaction.
- If the buyer is financing the purchase with a mortgage, the loan sanction letter, loan agreement, and disbursement details are crucial documents to ensure the lender's interests are protected.
- Copies of recent utility bills (electricity, water, gas) in the name of the previous owner serve as proof of ownership and ensure there are no unpaid dues.
- Both the buyer and seller must provide valid identification proof and their Permanent Account Number (PAN) for taxation and registration purposes.
16. Stamp Duty and Registration Charges:
- Proof of payment of stamp duty and registration charges is required to register the property legally in the buyer's name.
- For properties in a housing society, documents like the share certificate, society registration certificate, and society NOC are essential.
These documents collectively ensure a transparent and legally sound property transaction, protecting the interests of both the buyer and seller.
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