6 Important Documents that Need To Be In Your Home Buying Process
Home buying for most of us is finding the ideal home that will raise the standards of our living. But is it just about the home? Well, the real deal of property investment is trickier than this if you are investing in real estate for the first time. In a tech city like Bangalore where the real estate and IT industry is thriving, it is easy to find a house of one’s choice. However, the property investment or the purchase doesn’t end with finding the dream home.
A series of paperwork and documentation follows the purchase of the property. And it is essential to do it right because, in a city like Bangalore where every nook and cranny is stuffed with real estate properties, there are chances of being scammed. Therefore, a buyer must understand the type of documents involved in the purchase according to the type of property. Buying from one of the trusted brands like Pride Group, you can be confident that the paperwork will be done with utmost vigilance.
As a buyer, it will be beneficial if you are familiar with the documentation involved. Here is a glimpse of the paperwork for first-time buyers.
1) The Sale Deed
One of the essential legal documents during property investment, the Sale Deed contains evidence of the sale and the transfer of property from the builder to the buyer. This document is the one that states that you own the property, and it should be kept safe for the coming years. Wondering why? Years after buying the home, you may choose to sell your house to someone else and in this case, the requirement of the sale deed is inevitable. Usually, the Sale Deed is drafted before the sale agreement, once the concerned buyer and the seller give a green signal on the terms and conditions detailed in the sale agreement.
2) The Mother Deed
Want to trace the ownership of a property? All you must do is find the Mother Deed. The Mother Deed traces the ownership of the property. And thus, this document is generally required by banks when a buyer avails a loan on the property. A buyer may approach the local government authorities to assist them in the drafting of this document.
3) The Sale and Purchase Agreement
The Sale and Purchase Agreement encloses a list of terms and conditions that are agreed upon by both the buyer and the seller. These will include the negotiated price of the property, the date of moving in, and the like. Thus, the agreement will contain information on the deal like the agreed amount of the flat by both – the buyer and the seller.
4) The Building Approval Plan
Before beginning construction in a particular location, the builder is required to get the necessary sanctions from the authorities, which gives the builder the nod to start the construction. This sanction may depend upon the land chosen by the builder and the building designs. Thinking why this document is important for you, a buyer? Well, one of the mistakes that first-time homebuyers tend to make often is, not ensuring that the builder follows the rules by the authorities. Not meeting the terms and conditions may lead to negative situations if it comes to the notice of the respective authority. And the best way to avoid this is to buy from a trusted brand like Pride Group. All the projects by Pride Group are RERA registered, be it apartments, villas, or villa plots. Thus you can buy your homes here without any worry.
5) The Completion Certificate/ Occupancy Certificate
The Completion Certificate, also known as the Occupancy Certificate, is a document that certifies that the building has been inspected and that it complies with all municipal or local development authority rules. This paperwork is required to avail services including water, power, and waste management. It is not ideal for a first-time homebuyer to purchase a property without a Completion Certificate because the property is considered illegal without it, which can result in a penalty or even eviction. However, in case if the builder fails, the buyer can approach the municipal corporation and request a Completion Certificate which will prove his/her ownership over the property.
6) The Possession Letter
The Possession letter is a document created by the builder that specifies when the buyer will take ownership of the property. This document is prepared under the builder's name after the Completion Certificate is obtained. This letter, however, does not prove the ownership of the property. Now that you have already read about the Occupancy Certificate, you know how to prove the ownership of the real estate property.
As you are aware of the documentation involved in the real estate industry, you can go ahead and buy your dream property with a peaceful mind. If you are still doubtful make sure that you buy from a builder who upholds their ethics. Pride Group is one such builder that will always guide you through the right ways. And they also work with leading banks in case if you are purchasing a loan. Want to know more about first-time buying? Read about the down payment and the best ways to save up in the present times.