Key Property Documents List to Check before Buying a property

1) Property Document: Original Title Deed (Proof of Ownership)

2) Property Document: Mutation Extract
3) Property Document: Record of Rights
4) Property Document: Sanctioned Building Plan
5) Property Document: Proof of Payments to a Developer
6) Property Document: Loan Documents and Proof of Payments to Bank
7) Property Document: NOC from the Society
8) Property Document: Tax Payment Details
9) Property Document: Encumbrance Certificate
10) Property Document: 'No Objection' Certificate from the Bank
11) Property Document: Commencement certificate, Completion Certificate and
Occupancy Certificate
12) Property Document: Original Copy of the POA
13) Property Document: Allotment Letter with Property Details
14) Property Document: Agreement of Sale
15) Property Document: Builder Buyer Agreement
16) Why Perform Due Diligence Before Buying a property
17) Summing up Buying Property and Checking Property Documents
18) Katha
19) Compounding fee receipt
20) Conversion certificate

21) Land acquisition

22) Joint development agreement & GPA

1) Property Document: Original Title Deed (Proof of Ownership)

If one is buying a property, then the original title deed of the previous purchase of the
property/project is one of the major property documents to submit. This will confirm that the seller
is the current owner of the property. The buyer must insist for the original title deed, and if the
owner is not able to furnish it, because he/she insists that it is lost, then the buyer should refrain
from going ahead with the purchase. That’s because there is a real probability that the original
title deed has been used to sell the property to a third party or to raise a loan, where the original
title deed has been deposited with the bank.

Difference between Sale Deed and Title Deed (Also what is mother deed or moola pathara)

The buyer must also be aware that there is a difference between a sale deed and a title deed. A
title deed is property document that can be submitted as the proof of ownership of a property,
regardless of if it is acquired through purchase or as a gift or inheritance. On the other hand, a
sale deed is the proof of the sale of a property with the details of the buyer and the seller. Check
out how to get certified copy of lost sale deed.

2) Property Document: Mutation Extract

Mutation extract is another essential property document when buying any kind of property.
Mutation by definition is any modification in the ownership of the property. The government
requires all properties to have their ownership records registered at the municipal or Panchayat
level, depending on if the property is falling within city municipal limits or outside of it. Whenever a
property has a change in ownership, through a deal registered at the local sub-registrar’s office,
the pertaining details have to be recorded in the revenue records of the local revenue office. Also,
 the mutation of a property is not just due to buying/selling of it but can be a result of any change
like the division between partners/inheritance.

3) Property Document: Record of Rights (RTC)

Record of Rights is another document detailing the information maintained by the local revenue office,
which records the ownership and its nature, tenancy, and some loan details for land parcels falling
under its jurisdiction. So, while the mutation register records just the ownership-related information,
the Record of Rights contains information on ownership, possession, and revenue. this property
document is also known as Record of Rights Tenancy, and Crops (RTC). Check out the article on
Check Mutation Details on Gujarat Land Records.

4) Property Document: Sanctioned Building Plan

A building plan sanctioned by statutory authority is another major property document to ascertain that
the actual construction is or will be as per what was submitted to the authority. RERA act further
mandated the developers to put the building plan on the state’s RERA website, and any deviation
from the same can lead to legal proceedings against the developers, further safeguarding the
interests of the buyers. Hence, it is advisable to download the building plan copy from the RERA
website and confirm that it is the same as what the developer is actually constructing on-site. And
while the builder will be provided a building completion certificate from the local authority post
completing the construction, and after the building gets inspected by the authority in terms of its
adherence to regulations and building plans submitted before the start of the construction, the buyer
may raise objection even before, in case he/she observes deviation in construction from the building
plan.

5) Property Document: Proof of Payments to a Developer

In case one is buying an under-construction apartment in a project from a third party, one should get
proof of historical payments made by the seller to the builder of the project. The original buyer should
make sure to pay the builder by cheque and not cash and make sure to get a receipt each time a
payment is made. Similarly, if one is buying a property from someone who has already bought the
house from the builder and the payments are still outstanding for the project, then he/she must ask for
the original receipts for all the payments made till date.

6) Property Document: Loan Documents and Proof of Payments to Bank

If the property is under a loan, then the relevant loan documents, including the proof of the payments
done till date must also be acquired. In case the loan is repaid in full, then the closure letter of the loan
must be received from the seller in the form of an NOC from the bank conveying that the loan on the
property has been completely repaid. You can get home loan details from CERSAI.Buyers can get the
details of the loans taken on the property from the Central Registry of Securitisation Asset
Reconstruction and Security Interest of India (CERSAI). Under the Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, all Banks and NBFCs are
required to file the equitable mortgages issued by them in the CERSAI. Additionally, through the
Amendment made in 2016, the Banks and financial institutions are also required to register the details
of mortgages besides the equitable mortgages, i.e., those registered with the local registrar.

7) Property Document: NOC from the Society

In case the property falls under a society, then buyers should also obtain a NOC from the Society
stating that there are no dues outstanding from the current owner towards maintenance or other
expenses. This should also make clear some particular matters because of which the society may
have reservations towards owners selling their property. This saves you from any surprises
when moving into the house.
In case the property is ready to move, then the latest bill and proof of no outstanding dues towards all
the expenses like maintenance, electricity, and water connection must also be obtained. This may or
may not be covered by the no dues certificate from the building association or RWA. No dues
certificate from all these agencies will save the buyer from outstanding payments arising due to the
non-payment by the previous owner of the property.

8) Property Document: Tax Payment Details

One must also examine and receive copies of any tax payments that are applicable to the property. If
the property is on a long-term lease, then the receipts of lease payments to the concerned authority
should also be obtained, in case the current owner is required to pay lease rent in specific intervals.

9) Property Document: Encumbrance Certificate

In case one is buying an individual property then an Encumbrance certificate of at least 13 years and
up to 30 years must also be obtained. The Encumbrance Certificate is a document issued by the local
sub-registrar’s office; under whose jurisdiction the property lies. The Certificate contains details of the
sale, gift, or any loan transactions relating to the property for a given time period. The time period is
selected by the party applying for the Encumbrance Certificate. The Encumbrance Certificate issued
by the sub-registrar’s office is either in the form of ‘Form 15’ or ‘Form 16’. Form 16 is the easiest to
understand as it states that the property does not have any encumbrances over it, over the time in
which the certificate was sought, and hence it’s called the ‘Nil Encumbrance Certificate’. The
Encumbrance Certificate also has various links that point to various transactions that have happened
over the property, including sale deed, gift deed, and release deed, as all these must be registered
with the local sub-registrar’s office. These help in establishing a clear title over the property.

10) Property Document: ‘No Objection’ Certificate from the Bank

Some cases have been witnessed in the under-construction or partially constructed projects in cities
like Noida where the builders have taken loans for construction of the project but have failed to make
repayments. In such cases, the banks may take possession of even the sold units. Hence, it is always
advisable to take a ‘No objection’ certificate from the banks or other financial institutions, which have
given the loan for project construction.

11) Property Document: Completion Certificate and Occupancy Certificate

Commencement certificate: The Commencement or clearance certificate (CC) is given by

the engineering department of the BBMP for the properties under construction in the city
limits. Once the building licence is obtained and the foundation and peripheral columns have
been constructed, the builder has to apply for the CC. Only after a CC is issued can a builder
legally proceed to construct the complete building. Note that BBMP will not issue an OC on
completion of the building, if the builder had not taken a CC at the beginning. See OC section
below.

In case the apartment is part of a recently completed project, then the buyer should ask for the
‘Completion Certificate’ and “Occupancy Certificate’. These certificates are important since they may
indicate if you can start living in or let out the apartment post purchasing it. The price of the apartment
will also be higher if the builder has obtained both the certificates, as these certificates indicate that
the buildings have been inspected by the local authorities and are in compliance with the local bye-
laws as well as are fit for habitation while providing access to basic civic amenities.

12) Property Document: Original Copy of the POA

While according to the Supreme Court judgment, Power of Attorney (POA) cannot be used as a
means to sell property, it can act as a means to enable a person to sell the property to another with
the help of another person, to whom a power of attorney is provided. In such cases, the buyer must
insist on the original copy of the POA that has been registered with the local sub-registrar’s office.
13) Property Document: Allotment Letter with Property Details

An allotment Letter from the builder or society, in which the property is located is another essential
document while purchasing a property. The allotment letter is a document that contains a lot more
information about the specifications of the flat and responsibilities of the builder, as compared to the
sales agreement. In case one is buying an under-construction apartment in a project from a third
party, the allotment letter becomes important in case of non-compliance by the builder in terms of
construction or providing amenities or delaying construction.

14) Property Document: Agreement of Sale

Agreement of Sale/Agreement to Sell, is a custom document detailing the terms and process of the
transaction until it gets executed in the form of a sale deed, which gets registered. The buyer should
mutually agree on the terms of conditions of the sales with the seller while executing the Agreement of
Sale.

15) Property Document: Builder Buyer Agreement

Builder buyer agreement is another document entered with the builder along with the allotment
letter and is a legal document stating the conditions, contingencies, and terms of the transaction
entered between the buyer and the builder. The conditions in the Builder-buyer agreement vary
significantly and any subsequent buyer of the property must get to know the clauses that specify
the rights and responsibilities of both builder and owner of the apartment, and it will become an
essential document in case of any lapses of the terms from either the builder or the owner’s side.
Buyer must be aware of any unfavourable conditions mentioned in the agreement that may be
detrimental to him/her at a later stage.

16) Why Perform Due Diligence Before Buying a property

Make sure you do not get into a property deal unless you are certain about the ownership right of the
seller over the property. This can save you from buying a disputed property or being a victim of a
fraudulent transaction.

Here are a few quick tips for buyers to help them purchase the right piece of property.

 Check if you have all the documents mentioned in the property documents list
 Verify the property ownership status through RERA registrations or land records
 Never use unaccounted money to make a purchase
 Avoid selling or purchasing a property on someone else’s behalf
 Go through the details mentioned in all property documents before signing them
 Do not just agree to whatever has been told about the property. Perform your own
research.

17) Summing up Buying Property and Checking Property Documents

To ensure you buy a property with all safety issues in place, check all related property documents.
When you have the right property documents and papers in place, there is little scope of getting
duped. Besides sale deed, there are the original title deed and other papers to look for. Ask for
original title deed(s) in case the property has changed hands more than once. Also, ask for mutation
papers and proofs of tax payments. Get the encumbrance certificate, completion certificate and
occupancy certificate. Also, demand the allotment letter. If the building is under construction, ask for
proof of previous payments to the developer and design details. Also, look for the builder-buyer
agreement. If there is a bank loan, demand proof of previous payments to the bank and an NOC from
the bank. If the society is already formed, ask for an NOC from the society too.

18) Khata

The Khata certificate is issued by the BBMP, the BDA or a village panchayat in the name of the
present owner or owners. There is no specific mention of the term Khata in the Karnataka Municipal
Corporation Act of 1976; this is only an assessment register which compiles all the details of each
property in the city. The term Khata is a colloquial term and literally means an ‘account’. Thus, the
Khata is an account of every person who owns a property in the city. Each property will have a Khata.
Each Khata has two parts: the Khata certificate and the Khata extract.

a. Khata certificate

A Khata certificate is obtained for the registration of any new property after paying the registration fee.
This certificate mentions that a particular property number ‘N’ is held in the name of person ‘X’. This
certificate is required for applying for a water connection, electricity connection, trade licence and
building licence. The Khata certificate is given by the BBMP only to the owner of the property or to his
legal heirs, and is used for the purpose of paying taxes.

b. Khata extract

A Khata extract is a document issued by the BBMP that states the name of the property owner, details
of the property, such as plot size, built-up area etc. The owner can obtain this document on payment
of `100/- along with a requisition letter to the Assistant Revenue Officer at the BBMP’s zonal office for
the area where the property falls. Only owners can collect Khata extracts.

The Khata certificate and Khata extract are unofficially together called the ‘A Khata’.

• The ‘B Khata’

In order to include unauthorised layouts, revenue sites and buildings constructed in violation of by-
laws into the property tax net, a provision was made under the Section 108A of the Karnataka
Municipal Council Act. Under the new provision, the BBMP could collect property tax from such
properties. The details of the property tax collected from such a building or apartment or site are
maintained in a separate register, called the B register.

Read more on B Khata: B Khata isn’t an assurance of regularising your property

19) Compounding fee receipt

If the construction varies from the sanctioned plan, this is an important receipt which shows that a
compounding fee has been paid to the BBMP for regularising any deviation from the sanctioned
building plan.

20) Conversion certificate

This Conversion certificate (popularly known as DC conversion certificate) is issued by the Deputy
Commissioner. It certifies that the property has been converted from agricultural land to a residential
property.

21) Land acquisition

The buyer can ask for an Endorsement from the Special Land Acquisition Officer of the BDA, BBMP,
National Highways Authority of India (NHAI), the Karnataka Industrial Area Development Board
(KIADB), Karnataka Housing Board (KHB), Bangalore Mysore Infrastructure Corridor Project and
others, confirming that there are no acquisition proceedings underway with respect to the property
being purchased.

22) Joint development agreement & GPA

In recent times, the most popular method for building apartments is by way of a Joint Development
agreement (JDA). This is an agreement signed between the landowner and the developer, where the
landowner gives the land to the developer to build and sell apartments; in return, he gets a fixed set of
apartments to sell. The landowner issues a GPA to the developer.

Or If the land is “FREEHOLD” land means that the land belongs to the builder himself.

Documents for scrutiny for BDA sites

Whenever government acquires a land for development of a layout, the previous

title is extinguished by law and title starts from the BDA’s acquisition of the
property. The following documents should help in ascertaining the validity of the
property papers.

i. Primary documents of title for BDA properties

• Allotment letter: Issued by the BDA in favour of the present owner if he/she
is the original allottee
• Possession letter: Issued by the BDA in favour of the present owner
recording the handing over of the possession of the property to the present
owner.
• Lease-cum-sale deed executed and registered in favour of the allottee by
the BDA.
• Absolute Sale Deed executed and registered in favour of the allottee by the
BDA with respect to the property after 10 years from the date of the original
allotment.
• Building Sanction Plan issued by the BDA (or by the BBMP if the building
was constructed after it was handed over to the BBMP by the BDA) where a
building has been constructed on the property.

The secondary documents of title for BDA sites are Khata, Tax paid receipts and
EC, which have been explained in the list of general documents.

A thorough scrutiny and verification of the above-mentioned documents will

enable you to ensure that the property that you are acquiring has a clear,
marketable title and will help you to avoid fraudulent sales and lengthy litigation.