Building or buying your dream house is a big step in your life. While buying a house, many sensitive matters need to be taken care of to avoid any troubles in the future. Legal affairs, aka all the legal documents, are essential for a safe future in your dream house. Yup, that sounds like a lot of work. Worry not! Here is your guide to understanding all the legal documents that help avoid getting conned or lied to.
Legal Documents: The Need and Importance
Your investment - in your luxury home - is not a trivial deal. To ensure the safety of your investment - that you worked hard for - you must understand all the legal factors involved in the transaction.
The real estate industry is expanding with advancing technology, and opportunities are growing at a fast pace. As we know, this provides an opportunity for all those carrying out fraud and malpractice. Your safety is, to a certain extent, in your hands. Beware of those suspicious builders or agents who are just talking and have no action. That's a red flag one must not ignore.
Legal documents of your dream house are proof that all the information provided to you is legit and not a bluff that is spoon feed to you. Take your time to examine the papers and ask questions, it's about your investment.
Legalities made simple to understand:
Checking all the legal affairs while buying a house is not as intimidating as it sounds. It can be confusing, yes, but that is why we are here for you. Following are the basic documents that one should check, and if need be verify, when buying your dream house.
RERA Certificate:
It is out of the question to build and sell a real estate property without a RERA certificate. Just like it's impossible to cook food without fire, If a builder decides to build something in the real estate industry, it's mandatory to get the plan certified by Real Estate Regulatory Authority (RERA). To get this certificate, one has to present what, how, and who of the real estate project. If the project meets the needs of the authority they are approved in the form of a RERA Certificate.
This certificate comes under the Real Estate Regulation and Development Act. It ensures that there is transparency in information exchange among the trading parties, provides accountability to the builder, and reduces fraudulent activities. The RERA certificate has a registration number that one can cross-check.
It's the building block for any project to be built in the first place, let alone promoting and selling it. When the builder doesn’t provide you with this certificate for your dream house, RUN!
Power of Attorney:
Often we do directly indulge with the owner of the property, we interact with the attending party. It can be a trap in the forest, where often time people get stuck, just like innocent wildlife animals.
Airport NOC:
If you plan on a dream house with an airport nearby, this is one of the certificates that you need to ask for from your seller. Airport NOC is issued by the Airport Authority of India operating under the Ministry of Civil Aviation.
The airport NOC is essential as it states that the building you are making your luxurious home is not affecting the functions at the airport. It checks whether the building or house is a hindrance to the flight landing, affecting the radar system, or other such matters.
BU Permission Document:
BU stands for Building Usage. As the name suggests, it is a certificate that states the purpose of building a real estate property like a luxurious home, cooperate property, and more.
It is a mandatory certificate that a builder must get approved before building and selling the property. Ensure that you are living in your dream house that is meant for it and not for any other purpose.
This certificate is for a multitasking expert! It can serve as a certificate that ensures various factors relating to the property or building. The certificate is given after the project passes all the requirements of the land, environment, and other such parameters.
NA Permission:
Your dream house isn’t built on a farmer's tears. Agricultural land is off-limits when building residential buildings.
Non-Agricultural Permission is for projects that are on land that is not for agricultural use. It ensures the protection of the land right of the seller. One must ask for this certificate to ensure that they do not face any problems and that their future will all be okay!
Encumbrance certificates:
You do not add water to the already-filled bucket. Likewise, you do not get loans on property that already has loans or debts on it.
The encumbrance certificate states that the land is free of any financial burden and is ready to sell. It is helpful when you are applying for loans while buying house.
Agreement of sale:
It is one of the most crucial papers that you must cross-check. It holds all the information regarding the buying and selling of the property. It includes all agreed-upon requirements such as price, payment condition, property in detail, the parties involved, and other necessary detail.
Hold it dear to your life as it is your only proof to avoid trickery or fraud regarding buying a house.
Sales deed:
Imagine a situation where you claim the purse to be yours, but when looked inside turns out it's not yours. That must hurt a lot. It can happen to your dream horse as well.
The sales deed is the certificate of ownership transfer from the seller to the buyer. It is also known as a title deed. It is your only proof of calling your home yours without hesitation or hassle.
What else do you need to take care of?
When buying a house, you may opt for a loan or mortgage options to support your financial needs. Ensure to have a physical statement or written copy of the agreed conditions.
Make a checklist of the essential documents and make a folder for storing the same. As you collect the documents check off the list. Once satisfied with the documents take your next step.
Understand all the legal government authorities involved in the process of property purchase. It will give you a proper understanding of what to expect and where to cross-check details.
In a nutshell, buying a house is a big decision that includes a focus on many matters. One such matter is legal documents and the needs of the house. This post mentioned a few crucial documents you must check to avoid any problems in buying your dream house. At Sangini Group you are provided all you need to have the luxurious house you have dreamed of.
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