Thursday, 17 July 2014

Complete List of Documents / Things you must check for buying a Property/Flat/Plot

Posted by MyInvestmentsPub
Now-a-days the first thing that every young person who started earning money thinks to buy / purchase a property. Various reasons like Home loans availability, Real estate opportunities and Tax benefits are luring the buyers to purchase a property. During recent Budget 2014 is also very positive about Infrastructure developments in the country which is boosting again to purchase a Property. However, most of the youngsters do not know what aspects need to be looked before purchasing a property. And, this is causing a lot of cheating and resulting in purchasing an Un-authorized property or rejecting a Home loan which is heavy damage to your financial status.

Top 4 Things you must check before buying a Property / Getting a Home Loan:

Before buying a Property the following top things you must check first from the Builder / Housing Society. These things are essential for getting a Home loan as well.

1. Sale Deed / Title Deed of the Property --> 

The Property Sale deed describes the Ownership of the Property. The Title Deed presents rights and freedom to the person who hold it and such deed is an essential thing to transfer his ownership to the Purchaser. You can ask for Original sale deed so that the property is free from any loan. However, you can take Xerox copies for reviewing with a lawyer.

2. Link Documents of the Property --> 

The second essential thing is Link documents / Previous Sale Deeds of the Property. It is advised to take Link documents for the last 30 years. Some PSU banks are insisting the last 30 years Link documents. You can also take the Link documents from eSeva / Sub Registrar Office (SRO) which is advisable for reviewing with same the lawyer.

3. Search EC / EC of the Property --> 

The Encumbrance Certificate or EC is a must required certificate to check the proof of free title / ownership of the property. It is essential to concur that the land or property does not have any legal dues. It is advised to take EC up to date for the last 30 years. You can take EC from eSeva / SRO.

4. Municipal Approval Plan --> 

Now-a-days, the importance of Municipal Approval Plan is very much increased and is an important thing to check before buying a property or to get a Home loan.

Other Check lists to Purchase a Property / To get a Home Loan:

Apart from the above essential things, the following are the other important things to consider purchasing the property by taking Home loan:

  • Building Plan sanctioned by statutory authority (for eg. GHMC)
  • NOC from Electricity / Water works / Housing Board etc.
  • Development Agreement Copy and General Power of Attorney
  • Construction Agreement between Builder and 1st Owner
  • Allotment letter from Builder / Housing Board
  • Sale Agreement between Builder and 1st Owner
  • Copy of Possession letter from the Builder
  • Payment Receipts paid towards the Builder
  • Latest Tax Paid receipts from the date of registration up to date 
  • LRS / BRS of the Property if applicable. 
  • Completion certificate and Occupancy certificate from the Builder
  • Mortgage Clearance Certificate from the Concerned Authority

 Optional But Important Checks:

The following are the optional but are important checks on any Property before buying. These things are not required to get a Home loan.

  • Vastu of the Flat / Plot
  • Ground water and Drainage system
  • Any Burial ground near by (I suggest do not buy this property)
  • Any HT (High Tention) / Cell Towers over the Property
  • Any Expansion projects by Government authorities in these areas
  • Property does not fall under Temple Property, Defence, Railways, Airport, SEZ etc.
  • Builder history by checking his previous ventures
  • Facilities like Lift, Back-up, Security, Water storage etc.
  • Quality of Construction -> Advising to engage any civil engineer or any experience person


I hope I have covered most of the things to check before purchasing any Property. These things I have collected based on my experience and hope useful to all of you for Purchasing a Property or Getting a Home loan.

I wish you all the best!


  1. Hi sir,


    Could you please suggest us On Going for a property with the 20% (80% will be loan) cash is Advisable ???

    Jagadeesh M

  2. Hey, nice post Ravi Sir. I have gone through the article and found it relevant to the current trend. It was quite interesting reading on such a topic. Your article helped me out with some pointers. As I am a regular reader of such posts I have gone through many articles and founded some to be very helpful for others. On some other blog, As you have shared the content.I have read about how a first time home buyer help themselves to buy a home, i found it useful and wanted to share here as many can take the benefit from it

    Pooja Agrawal.