Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.

in

1.SaleDeed/Titledeed/Motherdeed/ConveyanceDeed

Description:Asaledeedactsasthemainlegaldocumentforevidencingsaleandtransferof
ownershipofpropertyinfavourofthebuyer,fromtheseller.Further,italsoactsasthemain
documentforfurthersalebythebuyerasitestablisheshisproofofownershipoftheproperty.
Thesaledeedisexecutedsubsequenttotheexecutionofthesaleagreement,andafter
complianceofvarioustermsandconditionsdetailedinthesaleagreementasagreedupon
betweenthebuyerandtheseller.ItismandatorytoregistertheSaleDeedinSubRegistrar
officeofpropertyjurisdictionwithin4monthsfromdateofexecutionelseitisinvalid.
Whyitisrequired:Toestablishtheownershipofsellerontitleofproperty
Mandatory:Yes.AllpreviousSaleDeedsarerequiredinoriginal
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

2.RTCExtracts

Description:R.T.CisissuedbytheVillageAccountantcontainsdetailsoftheextentoflandina
surveynumberorasubsurveynumber,theextentofkharablandtherein,thenamesofthe
presentandpreviousowners,theirrespectiveholdings,namesofthetenants,thekindof
soil/crop,anymortgages,chargesmadeonthepropertiescontainedtherein,thestatusofland
(whetherInamlandornot),theconversionordernumber,dateincaseanypropertyconverted
thereinfromagriculturaltononagriculturaluse,thereferencestomutationandinheritance
certificateswherethereisanychangeinownershipetc.
Whyitisrequired:ToestablishthetitleofLandifthepropertyislocatedonconvertedlande.g.
fromagriculturaltononagriculturaluse
Mandatory:No
RequiredinOriginal:No
RequiredFor:PropertyPurchase

3.KathaCertificateandExtracts

Description:KhatameansanaccountandKhataisanaccountofapersonwhohaspropertyin
thecity.TherearetwothingsinaKhata:KhataCertificateandKhataExtract.

Khatacertificateisrequiredfortwomajorpurposes:Forregistrationofanewpropertyandfor
transferofanyproperty.ItcanbeobtainedfromtheAssistantRevenueofficer(ofthe
respectivearea).Thiscertificateisnecessaryforanypropertyownertohave.

KhataCertificateisobtainedforanynewregistrationafterpayingthetax.Thecertificateis
issuedsayingthataparticularpropertyNo'N"standsinthenameofpersonX.Thiscertificateis
requiredtoapplyforwaterconnection,electricityconnection,tradelicenseandbuilding
license.TheKhatacertificateisgivenonlytotheownerofthepropertyortohisfamily

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

members.Nooneelsecantakeitonhisbehalf.

KhataExtractisgettingdetailsfromtheassessmentregister.Theextractisrequiredtoget
tradelicense,ortobuyaparticularproperty.Itisanextractfromtheassessmentregisterabout
anyparticularproperty.Ithasthedetailsofthepropertyinaparticularformatwiththename,
sizeoftheproperty,useoftheproperty(commercialpurpose,residential),annualvalue,when
assessedlast.Anextractistheonlywaytogetthesedetailsofanyproperty.

Whyitisrequired:Fortransferofproperty
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

4.MutationRegisterExtracts

Description:MutationExtractissuedbytheVillageAccountantorTahsildarcontainsthe
extractfromthemutationregisterorinheritancecertificatewithdetailsofpreviousowner,the
presentowner,themodeofacquisitionoftheproperty,thetotalextentofthepropertyand
theorderstatingthattheKhathaofthepropertymaybetransferredtothenameofthe
presentowner.
Whyitisrequired:ToestablishthetitleofLandifthepropertyislocatedonconvertedlande.g.
fromagriculturaltononagriculturaluse
Mandatory:No
RequiredinOriginal:No
RequiredFor:PropertyPurchase

5.JointDevelopmentAgreement

Description:AnindividuallandownerandabuildermayenterintoaJDA.Thekeyfeatureofa
JDAisthatthelandownerwillcontributelandandthebuilderwillundertakedevelopment
activityonit.Dependinguponthelandprice,thejointdevelopmentratioisdecidedamongthe
parties.Inmostsituations,thebuilderwillagreetoallotafewflatstothelandownerandwill
payatokenadvance.Inconsiderationforthis,thelandownerwillpartwithaportionof
undividedshare(UDS)oflandinfavourofthebuilderorhisnomineeandwillalsoallowthe
buildertoconstructandselltheagreednumberofflats.
Whyitisrequired:ToestablishwhetheroriginaltitleofpropertyrestswithBuilderor
Landowner
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:PropertyPurchase

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

6.GeneralPowerofAttorney

Description:A"powerofattorney"isalegalinstrumentwherebyonepersongivesanother
persontheauthoritytoactonhisorherbehalfashislegalrepresentativeandtomakebinding
legalandfinancialdecisionsonhisbehalfincludingSaleorPurchaseofPropertyonBuyeror
Sellersbehalf.
Whyitisrequired:ToestablishwhetherthepreviousSaleorPurchasewascarriedoutby
authorizedpersononSellerorBuyersbehalf
Mandatory:Yes(IfanyofpreviousSale/PurchasewereexecutedthroughGPA)
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

7.Buildingplansanctionedbystatutoryauthority

Description:Thebuildingplanapprovalprocessrelatestotheissueofpermissionforthe
constructionofbuildingsbasedonspecificsetofrulesandregulations.
Whyitisrequired:Toestablishwhetherthepropertyisauthorizedorunauthorized
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:PropertyPurchase

8.NOCfromElectricityDeptt/PollutionControlBoard/WaterWorks/AirPort
Authority

Description:Beforestartingtheconstruction,builderrequiresNOCfromallkeyGovt
Departments.InsomestatesNOCfromatleast19departmentsrequiredrangingfromPollution
ControlBoardtoFire&Safetyetc.Simplee.g.IfbuilderdoesnotgetNOCfromElectricityDeptt
theninallprobabilityuwillnotgetelectricityconnectionthus100%dependencyongenerators
andmaintenancebillwillshootupdrastically.
Whyitisrequired:ToensureGovtapprovalsareinplace
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:PropertyPurchase

9.Supplementaryagreement/RatificationDeed(ifany)
Description:Supplementaryagreementcapturesanyextension,changeormodificationin
certainclausesofPrincipalAgreement.Manyatimeschangesarerequiredinprincipal
agreementandonlywaytoexecutethesameisthroughSupplementaryagreement.Justcheck
whetheranysupplementaryagreementisexecutedforanyofPrincipalagreement.
Whyitisrequired:Toavoidanyfutureshockonmodifiedclauseswhichuwerenotaware
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase
visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

10.AllotmentLetterfromthebuilder/cooperativesociety/HousingBoard/BDA.

Description:GenerallywhilepursuingBankLoantobuyproperty,Builder/HousingSociety
issuesanAllotmentLettertothebuyerwhichgivesdetailsthatwhatisthedescriptionofthe
subjectpropertybeingsold/boughtbythetwopartiesandalsoitmentionstheamountof
moneywhichbuyerhaspaidtothebuilder/housingsociety,suchthatremainingamountcanbe
financedbythebank.

OnthebasisofthisAllotmentLettergenerallybankfinancestheremainingamount.

AssuchtheAllotmentLetteralsogivesallthepertinentdetailsofthePropertybeing
bought/soldandalsoaboutthespecificationsoftheProjectonthewhole.

AgreementofSaleisdocumentedonaStampPaper,whereastheAllotmentLetterisona
simplepieceofpaper.

Allotmentletterisonlyissuedto1stownerbybuilderandsubsequentownerscandemandcopy
oforiginalallotmentletterfrompreviousowner
Whyitisrequired:ForDescriptionofProperty&ProjectspecificationbyBuilderorHousing
Society
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

11.SaleAgreementbetweenBuilderand1stOwner
Description:TheAgreementmustcontaintheliabilityofthePromoter/Buildertoconstructthe
buildingaccordingtotheplansandspecificationsapprovedbythelocalauthority.Itshouldalso
contain possession date, price to be paid by the purchaser and the intervals at which the
installmentstowardsthefullpaymentaretobemadespecifyingthestageofconstruction,the
precisenatureofthebodytobeconstitutedofthepersonswhowouldtaketheflats,details
regarding the common areas and facilities specifying the percentage of undivided interest in
thecommonareasandfacilitiespertainingtotheapartmentagreedtobesold,astatementof
theuseforwhichtheapartmentisintended.
Whyitisrequired:AsmentionedinDescription
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

12.ConstructionAgreementbetweenBuilder&1stOwner

Description:Theconstructionagreementisessentiallyaworkscontract.Inotherwords,itisan
agreement in writing for the execution of the work relating to the construction of the
apartmentanditalsoinvolvesthetransferorsaleofthegoodsinvolvedintheexecutionofthe
contract. The nature of this contract is such that a person undertakes to execute work by
incorporating various items, things and goods in such work. When completed, these items
alongwiththeexecutedworkareownedbythepersonforwhomtheworkhasbeenexecuted.
Whyitisrequired:AsmentionedinDescription
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

13.Copyofpossessionletterfromthebuilder

Description:Itensuresthatpossessionofthesaidbuildingisbeingdeliveredtothepurchaser
ontheeffectivedatespecifiedintheletter.
Whyitisrequired:AsmentionedinDescription
Mandatory:Yes(Incaseof1stPurchasei.e.fromBuilder)
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

14.Paymentreceiptspaidtowardsthebuilder

Description:DontforgettocollectoriginalPaymentreceiptsfrombuilder.
Whyitisrequired:AsmentionedinDescription
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan(Incaseof1stPurchasei.e.fromBuilder)

15.Ifanyloanontheproperty(Currentorpast)

Description:
a.Listofdocumentwiththevendorbankloan.
b.Closureletterwithpenalty.
c.Iftheloanisclosedthencopyofclosureletterfromtheconcernedbank.

Whyitisrequired:Toascertainthatpropertyisnotmortgaged
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

16.SaleagreementwiththeSeller

Description: Itisanagreementwhichisenteredintobetweenthepartiesfordealingwiththe
propertyandwhichcreatesarighttoobtainasaledeedmentioningtheproperty.Normallyit
fixes a time for completion, payment of earnest money or part payment of purchase
consideration.Generallyitisadocumentthatprecedesasaledeedandinsuchcasesdoesnot
require registration and will also not confer any charge or right on the property. However in
somestatesthesaleagreementitselfwillberegisteredandwillactasasaledeed.ForHome
Loanpurpose,itismandatorytopaystampdutyequalto0.10%ofSaleAgreementvalue.

Whyitisrequired:Tofixtermsandconditionsforsale
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

17.LatestTaxPaidReceiptfromthedateofregistrationuptodate(Property
Tax/MunicipalTaxetc)

Description:Itshowspropertydetailsi.e.area,ownersname&otherimpdetailsrelatedto
property.ForincometaxpurposesinIndia,propertyisconsideredasasourceofincomeand
hence,taxisleviedonthat.Propertiesareusuallymeantbyrealestateswhichincludeany
building,flat,shopetc.aswellasthelandappurtenanttothebuilding.UndertheIncomeTax
Act,incomesfromthepropertiesareregardedasoneoftheheadsofincome.Theamountof
taxiscalculatedonthevalueofthepropertybeingtaxed.Itisthelocalmunicipalityauthority
thatleviespropertytaxforthemaintenanceofbasiccivicservicesinthecity.Unlikethe
countrieslikeUKwheretheoccupierisliabletopaythepropertytax,itistheliabilityofthe
propertyownertopaythepropertytaxIndiatotheconcernedmunicipalities.
Whyitisrequired:Asmentionedindescription
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

18.ECuptodateforlatest13yearsorfromthedateofregistrationtilldate

Description:Thiscertificateistobegotfromthesubregistrar'soffice.Thisofficeisdirectly
undercontroloftheInspectorofRegistrationofProperties,operatedbythestategovernment.
Thecertificateshowsthatinagivenperiodoftimefromwhenthepropertywasbought/sold
hastherebeenanytransactionormortgaging.Buyers/sellersaskforthiscertificateforwhena
newtransfer(sale)istakingplace,sothatthebuyerknowswhatalltransactionshave
happened.
visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

Accordingtothekindoftransaction,thecertificateisgivenintwodifferentforms.Form15,will
havedetailsoftransactionsduringtheperiodofregistrationinthenameoftheowner.A
personwillgeta'nilencumbrancecertificatewhennotransactionhastakenplace.this
certificatewouldappearonForm16.

Theencumbrancecertificateistoconfirmthatthepropertyisstillinthenameoftheperson
whoissellingit.
Whyitisrequired:Toestablishownershipofsellerontitleofproperty
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

19.DemandLetterfromthevendorbeforedisbursement

Description:Demandletterisissuedbybuilderto1stowner,demandingpaymentdueasper
scheduleagreedbetweenbuilder&1stowner.
Whyitisrequired:Asmentionedindescription
Mandatory:Yes(For1stPurchase)
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

20.Owncontributionreceiptalongwiththebankstatementfromwhichyou
havepaidyourcontributiontothevendor.

Description:Itisrequiredbytheinstitutioni.e.bankorHFCwhichisprovidingloanforthe
propertytoascertainthatbuyerhaspooled&paidhisowncontributiontoseller.
Whyitisrequired:ForavailingHomeLoanitismandatoryforpurchasertocontribute20%of
PurchaseValuefromhisownsourcesandbankonlyapproveloanupto80&ofpurchasevalue/
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:HomeLoan

21.NOCfromtheSociety/Buildingassociation.

Description:Anuptodatenoobjectioncertificatefromtheapartmentsownersassociation
shallbeinsistedmentioningAssociationdoesnothaveanyobjectiononownershiptransfer
Whyitisrequired:Toavoidanyfutureobjectionbyassociation
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan
visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

22.Noduecertificatefromthebuildingassociation.

Anuptodatenoduescertificatefromtheapartmentsownersassociationshallbeinsisted.

FurtheracertificatefromtheAssociationthatnochargeofanyBankorfinancialinstitutionis
recordedwiththemwithrespecttotheapartment.

YetanothercertificatefromtheApartmentOwnersAssociationthattheyarecustodiansofall
theOriginaldocumentsandapprovalsoftheentirepropertyisaMUST.
Whyitisrequired:Toensureownerhasclearedallthedues&associationiscustodianofall
originaldocuments
Mandatory:Yes
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase+HomeLoan

23.Approvedplanofconstruction/extension&licenseforconstruction.

Description:Beforestartingtheconstruction,Builderobtainapprovalfromlocaldevelopment
authorityforconstruction.
Whyitisrequired:Toensurebuildinghasapprovalinplaceforconstruction
Mandatory:Yes(For1stpurchasefrombuilder)
RequiredinOriginal:No
RequiredFor:PropertyPurchase+HomeLoan

24.Detailedcostestimate/valuationreportfromCharteredEngineer/Architect
(ifapplicable)

Description:Beforeapprovingloan,Bankcarryoutpropertyvaluatione.g.ifuhaveappliedfor
loanof80%forpropertyworth60Lacs&valuationreportofbankestimatepropertyvalueas
50Lacthenbankwillonlyfund80%of50Lac.
Whyitisrequired:Tofixloaneligibilitybasedonpropertyvaluation
Mandatory:No(Normallyitsbanksinternaldocument)
RequiredinOriginal:No
RequiredFor:HomeLoan

25.Conversionorder/bettermentchargespaidreceipt.

Description: Generally the lands available are basically agriculture in nature, as the major
occupationisagricultureandtheGovernmenthastakenvariousmeasurestosecure&preserve
it.Thegeneraluseofallsuchlandsisagricultureandifithastobeusedforanyotherpurpose

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

otherthanagriculture,thepropertyownermustobtainlegalpermissionfromthecompetent

authoritybyfollowingprescribedprocedures.
Conversion is a legal process by which the property owner changes the use of the land from
agriculture to non agriculture purpose. It is also called CHANGE OF LAND USE. The legal
sanction/ conversion/ order/grant/permission is necessary to use the land for any other
purpose
Whyitisrequired:Forconvertedlands
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:PropertyPurchase+HomeLoan

26.Layoutapprovalplansanction

Description: The layout plan should be approved by the local development authority. In the
absence of this you could face Khata transfer and plan sanction problems. The development
authorityhasarighttodemolishthedevelopmentalworksandrestorethelandtostatusquo
ante if layout approval plan is not in place. The title to the site itself can be fairly safe (if
documentsareclear)butthedevelopmentisunauthorized.
Whyitisrequired:AsmentionedinDescription
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:PropertyPurchase+HomeLoan

27.AuctionSaleconfirmationletterfromLocalDevelopmentAuthority

Description:Ifanysite/landispurchasedbybuilderorbyindependenthouseownerbywaysof
AuctionbyLocaldevelopmentauthoritythenthisletterisdefinitelyrequired
Whyitisrequired:AsmentionedinDescription
Mandatory:Yes(Asapplicable)
RequiredinOriginal:No
RequiredFor:PropertyPurchase+HomeLoan

28.Releasedeed(Ifapplicable)

Description:ReleaseDeedisdonetoReleaserightswherebyapersonrenouncesaclaimupon
other person or property. If u r purchasing a property, which might have been inherited by
sellerorwaspartofsettlementbetweenlegalheirsoforiginalownerthendefinitelyyouwill
comeacrossreleasedeed.
Whyitisrequired:AsmentionedinDescription
Mandatory:Yes(Asapplicable)
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

29.CompletionCertificate

Description: This certificate is issued by Municipal Authorities showing whether the building
complieswiththerulesofbuildingheight,distancefromroad,andwhetheritisbuiltaccording
toapprovedplansandisreadyforhabitation.
Whyitisrequired:Toensurebuildingisconstructedasperapprovedplan
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:PropertyPurchase+HomeLoan(Mandatoryfor1stPurchase)

30.OccupancyCertificate

Description:Theoccupancycertificateisobtainedattheendoftheconstruction.Oncethe
builderappliesforthecertificateaninspectionisdoneagaintoconfirmiftheconstructionhas
happenedaccordingtothesanctionedplan.

Thiscertificateismandatoryforanybuilderbeforeheallowspeopletotakepossessionofthe
property.
Whyitisrequired:Toensureflatisreadyforoccupancyandconstructionisdoneasper
sanctionedplan
Mandatory:No
RequiredinOriginal:No
RequiredFor:PropertyPurchase+HomeLoan(Mandatoryfor1stPurchase)

31.Loan/Charge/MortgagebyBuilder:

Description:IftheBuilderortheLandOwnerhascreatedachargeinfavourofanyBankor
FinancialInstitution,aNOOBJECTIONLETTERfromtheinstitutionshallbeinsisted.SuchNO
OBJECTIONlettershallclearlystatetheproperty,thenameoftheborrower,theborrowers
accountnumber,theapartment,floor,area,carparketc.,andshallbeaddressedtothe
Purchaser.TheoriginallettershallbealwayskeptinthesafecustodyofthePurchaser.Ifinthe
NoObjectionletteritisstipulatedthatallpaymentsbythePurchasershallbethroughthe
financialinstitution,thesameshallbecomplied.

IftheBuilderstatesthattheyhavenotavailedanyloanorhavenotcreatedanychargeonthe
property,thesameshallbestatedindefinitewordsintheagreement/stobeenteredintowith
theDeveloper.Thereshallalsobearecitationthatalloriginaldocuments,deedsand
approvalsareheldbytheDeveloperintheirsafecustodyandthattheDevelopershallcontinue
toholdthesameintheirsafecustodyintrustforallthepurchasersofapartments,andshall

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters

Prepared by NITIN BHATIA & downloaded from www.nitinbhatia.in

neverpartwiththeOriginalsandthatassoonastheAssociationofApartmentOwnersis

formed,alltheOriginaldocuments,Deedsandapprovalswillbehandedovertothe
Association.Thisshallbeoverandaboveadeclarationintheagreement/sbytheLandowner
andtheDeveloperthatthepropertyisfreefromallencumbrances.
Whyitisrequired:ToascertainpropertyisnotmortgagedbytheBuilder
Mandatory:Yes
RequiredinOriginal:No
RequiredFor:PropertyPurchase

32.DEEDOFDECLARATION

Description:AcopyoftheDeedofDeclarationoftheApartmentOwnersAssociationandthe
ByeLawsannexedtothesameshallbecalledforandreadtoconfirmthatitconfirmstothe
saledeed/titledeed.Itisalsoadvisedtolookforanyadditionalburden/costsintheformof
transferfeepayablebytheTransferee.
Whyitisrequired:Toestablishtransferofownershiptooriginalbuyerbybuilder
Mandatory:No
RequiredinOriginal:No
RequiredFor:PropertyPurchase

33.LatestElectricityBill
Description:AlwaysinsistonLatestElectricityBillandPaymentreceiptfrompreviousowneras
Electricitybillistheanothersolidprooftoestablishtheownershipofcurrentowner
Whyitisrequired:Toestablishownership
Mandatory:No
RequiredinOriginal:Yes
RequiredFor:PropertyPurchase

visit www.nitinbhatia.in or email to info@nitinbhatia.in for any query on property matters