Homebuying usually starts with browsing a brochure. A smiling family, a shimmering tower, a green lawn manicured so clean it looks like a golf course. You sit across a suited salesman with a rehearsed pitch. “Only a few units left.” They always say that. And somehow, a limited-time offer just for you. Right.
But behind all the air-conditioned charm and neat folders, there’s the cold part nobody wants to talk about: the documents. If you skip this part, you are not investing, you are gambling.
Documents To Check
So, here are a few documents you should check while buying a property in a newly-developed project.
1. Development Agreement: This is where it all begins. If the builder doesn’t own the land, this document proves they have the right to build on it. If it's missing, treat that as a red flag and stay away from the project. The document should lay out who owns what, who’s building what, and when. Get a lawyer to look at it if in doubt.
2. Title Deed: If you are buying a property, then make sure to see the original title deed. This paper tells you who owns the land and whether it’s clean – no disputes, no loans, etc. Read and scrutinise it. Otherwise, you could be buying into someone else's legal headache.
3. Rera Registration: After 2016, it's illegal for builders to sell new projects without registering with the real estate regulatory authority (Rera). Look it up. Search the Rera portal of your state. Cross-check the number. If it isn’t registered, walk away from the project.
4. Commencement Certificate: You wouldn’t trust someone to build a skyscraper without a go-ahead from the local authority, would you? This paper gives them legal permission to start digging. Without it, that project is technically illegal.
5. No Objection Certificates (NOCs): It’s not just one NOC. It’s a pile, from the fire department, the environment board, sewage department, traffic, and civil aviation (if near an airport). If any of these are missing, banks won’t vouch for the project, and neither should either.
6. Layout and Building Plan Approvals: Ask for the approved plan. Not the fancy 3D model, but the actual stamped layout from the planning authority. If they start building something else entirely later, this paper protects you.
7. Encumbrance Certificate (EC): This one may not seem important, but it is crucial. It shows whether the land is mortgaged or involved in a legal case. It should be clean for at least 30 years. If you don’t know how to get one, go to the sub-registrar's office. Or hire someone who does.
8. Land Use Certificate: A shopping mall can’t legally become your dream home. Make sure the land is zoned for residential use. This certificate says exactly that.
9. Agricultural to NA Conversion Certificate: In India, a lot of real estate starts on farmland. But converting it legally to residential use is a process. Without the conversion certificate, the project is waiting for its demolition orders.
10. Sale Agreement: Don’t believe verbal promises. Get it all in writing. This agreement should include the specifications, delivery timelines, penalties for delay, and total cost.
11. Bank Approvals: Any serious project will already be vetted by major banks. If no bank has sanctioned a loan for the project, you should be asking: why?
Don’t just look at the price per square foot. Look at the paper. If any of the above is missing, vague, or fishy, stay away from the project.
