Buying a house? Check for these 5 legal documents
Every document and procedure should be double-checked as even the slightest of error can you in trouble. The only way is to be extra cautious with the papers that you have to submit.Updated: Feb 13, 2020 20:34 IST
Owning a house is often a dream for many. Buying a property, wherever it may be, is a long-drawn-out process. There are several hurdles that prospective homeowners need to cross, including having to deal with brokers, tenancy laws and even property condition, not to mention financing.
Every document and procedure should be double-checked as even the slightest of error can put you in trouble. The only way is to be extra cautious with the papers that you have to submit.
Here are 5 legal documents you should check before purchasing a house
Purchase agreement: As the name suggests, the purchase agreement mentions important details of the project such as specifications, payment terms, deadlines of completion of the project, type and amount of penalty and ramifications if any party defaults.
The purchase agreement is a legal contract signed by homebuyers and sellers and confirms that both the parties have agreed upon terms and conditions.
Occupancy certificate: Once the construction of the house or property ends, an occupancy certificate or completion certificate is given by the municipal corporation or planning authority. The legal document confirms that the property has met the sanctioned plan and is ready and safe to be occupied.
Also, ask for all the loan papers even if there is any amount outstanding.
Title deed: Another crucial legal document is the title deed mentioning that you own a right or have the ownership of the house and that you hold the authority to use it.
Since you own the house, you can modify, renovate as per your choice. It also gives you the authority to transfer the portion that you own to someone.
Home inspection report: Once the house that you are purchasing is completed, it is inspected. An inspector visits the house and looks for all the specifications and legalities before producing a report that gives detailed notes on the condition of the house and mentions problems, if any.
The report will enable you to make the repairs done in the house mentioned by the inspector.
Mother Deed: The main legal documents and evidence of ownership of a property, mother deed is also the main document for further sale.
It establishes proof of ownership and is an important document during the property transaction.