Many property owners believe that registering the property on their name after a sale is sufficient proof of ownership. However, the recent Supreme Court ruling in India has shaken the real estate market. The ruling states that a sale deed does not guarantee the ownership of the property. Besides property registration documents, several other documents can serve as evidence of ownership. These include the sale deed, title deed, encumbrance certificate, property tax receipts, and Khata certificate. Additionally, the possession letter, occupancy certificate, and building plan approval can also be relevant.
Here’s a breakdown of these documents:
- Sale Deed:This is the primary document that transfers ownership from the seller to the buyer during a property transaction. This document is signed by both buyers and sellers with witness from both parties.
- Title Deed:This document establishes legal ownership of the property.
- Encumbrance Certificate (EC):Issued by the sub-registrar’s office, the EC confirms if there are any existing loans, mortgages, or legal disputes associated with the property.
- Property Tax Receipts:These receipts show that property taxes have been paid, indicating the owner’s responsibility and connection to the property.
- Khata Certificate/Extract:Issued by the local municipal authority, this certificate identifies the property, its owner, and the type of land use (residential, commercial, etc.).
- Possession Letter:Issued by the builder or seller, this letter indicates the date when the buyer can take possession of the property.
- Occupancy Certificate (OC):This certificate, issued by local authorities, confirms that the building is ready for occupancy and complies with approved plans.
- Building Plan Approval:This document, issued by relevant authorities, shows that the building plan has been approved, ensuring it meets construction standards.
- Other Documents:Depending on the specific situation, other documents like the allotment letter (if applicable), No Objection Certificates (NOCs) from relevant authorities, and utility bills may also be relevant.
- Society share certificate: If you bought an apartment, you will have to submit one set of documents with the society office and share certificate.
- Society Membership: Fill up the membership form and obtain your membership and other process as necessary by the society office.
While registration is essential for legal validity, these additional documents serve as further evidence of ownership and can be beneficial in various situations, including property disputes and loan applications.
International Desi recommends, even if you have the cash to cover the property’s cost, it’s advisable to seek a small loan from a reputable bank. This is because the bank will thoroughly review the property’s documents and formalities to ensure the property’s title and documents are in order before approving the loan. By outsourcing this legal process to experts, you can obtain legal advice without incurring additional costs and minimize the risk associated with the property’s title.
Additionally, ensure that all property-related documents are kept in a secure location. Certified copies of documents issued by the registrar should also be stored in another location to prevent their destruction in case of fires, floods, or theft.