Property Documents

Maintaining property documents is very important.

Documentation is one of the most important and critical areas in the whole process of acquisition of property. They need careful scrutiny by a purchaser.You should check the title of the property and its mortgage status. A clear title is also a prerequisite to get a loan from a bank.In case the title of the seller is not clear,many complications can arise in future including difficulty in reselling the property. This is because in case you decide to sell the property, you would have to show all the papers to the prospective purchaser. Also,they may be needed for payment of property taxes, computation of taxable income, calculation of capital gains, calculation of wealth tax and so on. They are also needed if you have to make a legal claim on the property.


Here are some major documents that you should ensure are in order and kept safely:



PERMISSION FOR NON-AGRICULTURAL USE
In case a land proposed to be bought is agricultural land and if you intend to develop it for residential or other use, it has to be converted to non-agricultural land. In order to do so,a non-agriculture order has to be obtained from the collector of the district where the property is located.
You also need the receipt evidencing the payment of nonagriculture tax. In case the conversion from agricultural use to non-agricultural use is not done within the stipulated period, there should be an order from the authority concerned extending the period.

CONVEYANCE OR SALE DEED
This is the document through which the title of property is conveyed by the seller to the purchaser.Conveyance deed helps a purchaser ascertain whether the property proposed to be bought belongs to the seller.

PERMISSION FOR TRANSFER FROM SOCIETY
In many cases, a no objection certificate has to be obtained by the seller or buyer from the local society for transfer of land.

SEARCH REPORT
A lawyer prepares the search report. This certificate is issued after conducting a search on the title of the property,which is intended to be purchased. It states whether the property is unencumbered, and has a clear and marketable title. A search report regarding is taken for a period of the last 30 years. A developer annexes a copy of this report with the agreement to sell with the intended purchaser. It also states whether there is an existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely.

7/12 EXTRACT
This extract is issued by the tahsildar or the land authority concerned. It gives details of the property including survey number, location, area, date from which current owner is registered as owner etc.

INDEX II
This is issued by the office of Sub-registrar of Assurances.It contains names of the sellers and purchasers of a property.

ALSO NEED TO MAINTAIN
Share certificate issued by the society Allotment letter issued by the authority Lease deed of society Registration details of the society Bye-laws of the society Approved building plan Proper title of builder
Permission to mortgage
Undertaking from the society (in case the property is still under construction)
Allotment letter
Possession letter
Receipts of payments made to authorities Receipts of payments made to seller
Power of attorney
Will Agreement to sell the property
Khata certificate
Receipts of payments of property tax, electricity bills and water charges