Things to Keep In Mind before Buying a Home
Major mistake that ends up young home buyers into trouble is negligence to factor the total cost of the property. Other major factor which every home buyer should be aware of is to “know their rights”.
By: Manju Yagnik, Vice Chairperson, Nahar Group
Introduction of RERA has created the legal groundwork to make the sector consumer-centric by providing transparency and improve disclosures and hence the end user has easy access to property-related data and information, creating a transparent interface.
Important documents needed and to be checked by millennials before investing into a property include:
1. List of document Required for buying home?
o Photo ID Proof
a. Aadhar Card
b. PAN Card
o Additional documents required if going for home loan:
a. Last three years Tax returns
b. Last one year Bank Statements
c. Form 16 (if salaried)
d. Previous loans sanction letters (If any)
• In case of Salaried, requires last 3 months salary slip and employment certificate.
2. List of documents to check while buying home?
A. Under Construction Projects:
o RERA Certificate: RERA Certificate is essential for under construction projects as it ensures that developer will complete the project in stipulated period of time and provide buyer will the mentioned amenities
o IOD and CC: The Intimation of Disapproval (IOD) is only an approval of the civil plans. Review of the structural plans is done in parallel with the NOC process. Final clearance to build (Commencement Certificate) is only be given once the company obtains all NOCs and meets all IOD conditions.
o Agreement to Sale: Agreement of sale is important document encapsulating terms & conditions agreed by both the parties including final price and future date of full payment.
B. Additional Document when going for Ready to move in properties:
o Completion Certificate: Completion Certificate is an important document and is issued by the local authority once the construction of the building is completed
o Occupancy Certificate: Occupancy Certificate showcases that building has been constructed as per the sanctioned plan and is issued by the local authority
C. Additional Document when going for buying home from previous owner
o Agreement of sell: Agreement of sale is important document encapsulating terms & conditions agreed by both the parties including final price and future date of full payment
o Sale Deed or Title Deed: Sale Deed or Title Deed is another important document demonstrating sale and transfer of property ownership in favor of the buyer, from the seller
o Conveyance Deed: A conveyance deed is a signed legal document that shows a title or deed has been transferred.
o Property E-Search Report (normally clients check Index I and Index II) checked in Maharashtra.
o Property Tax Receipts: Property Tax receipts establishes legal status of the property and showcases that seller had paid all the taxes and none have been left as due.
o Encumbrance Certificate: Encumbrance Certificate showcases that property is free from all the mortgages. The certificate is also required by banks for processing your home loan
o Society NOC or Transfer NOC: The NOC is provided by the society/builder in case society is not formed. NOC means, ‘No objective certificate’ for sale of the property.