A Comprehensive Guide to Your Property Documents

If you're thinking of buying a property in India, it's important to understand the various documents associated with the property. These documents play an important role in the property ownership process. In this article, we will provide a comprehensive guide to your property documents in India, including their significance and legal implications.

Sale Deed or Conveyance Deed

The sale deed or conveyance deed serves as proof of property ownership. It is a document signed between the buyer and the seller during the property sale transaction. The sale deed outlines the terms and conditions of the sale, which include the purchase price, payment terms, and other relevant details. It also describes the property, including its boundaries and location.

It's mandatory to register the Sale Deed in the Sub Registrar office in whose jurisdiction the property is located within 4 months from the date of execution. If not, you need to pay a penalty, or it stands invalid.     

RTC Extracts

The RTC or Record of Rights, Tenancy and Crops is a document issued by the Village Accountant in India. It contains important details about a particular survey or sub-survey number of land. This includes information on the size of the land, any non-arable land within it, the current and previous owners of the land, their holdings and tenants. 

The RTC also provides information about the kind of soil and crops grown, any mortgages or charges made on the property, and its status as either Inam land or not. It also includes details about any conversion orders for changing the property from agricultural to non-agricultural use and references to inheritance and mutation certificates in case of any change in ownership.

Khata Certificate and Extracts

A Khata is an account of a person who owns property in a city, and it comes in two forms: Khata Certificate and Khata Extract. It confirms that a property is constructed as per the approved plan and is recorded by the local municipal committee. 

A Khata Certificate is necessary for registering or transferring any property and can be obtained from the Assistant Revenue Officer of the area after paying taxes. It is required for getting water and electricity connections, trade and building licenses. 
The Khata Extract contains property details like its size, use, and annual value and is necessary for getting a trade license or purchasing a property. 

Mutation Register Extracts

A Mutation Extract is a document issued by the Village Accountant or the Tahsildar. It contains information extracted from the mutation register or inheritance certificate, including details about the previous and present property owners, how the property was acquired, the total size of the property, and an order stating that the Khata of the property can be transferred to the name of the present owner.    

Power of Attorney

A POA is a legal instrument in which one person delegates authority to another person to act as his/her legal representative and make lawful binding financial and legal decisions on his/her behalf, including the sale or purchase of property on the buyer's or seller's behalf.  

No Objection Certificate

Builders are required to obtain a No Objection Certificate (NOC) from all the key government departments before starting the construction of a building. The number of departments from which an NOC is required can vary by state, but it can be as many as 19 departments, ranging from Pollution Control Board to Fire and Safety. Therefore, obtaining NOCs from all the necessary departments is important.   

Allotment Letter from the Builder/Housing Board/Co-Operative Society

When an individual takes a bank loan to purchase a property, the builder or housing society provides an Allotment Letter to the buyer, which contains the details of the property being sold and bought, as well as the amount of money that the buyer has already paid to the builder or housing society, so that the bank can finance the remaining amount. The Allotment Letter also provides details of the project and the property being purchased.

The Allotment Letter is issued on the Letterhead of the concerned authority. Only the first owner receives the Allotment Letter from the builder, but subsequent owners can request a copy of the original allotment letter from the previous owner.   

Sale Agreement between Builder and 1st Owner

The Sale Agreement is a very important property document that outlines the responsibility of the builder to construct the property according to approved plans and specifications. It includes details such as the tentative possession date, the price to be paid by the purchaser, and the payment intervals based on the construction stage. The document also specifies the nature of the association, common areas and facilities, undivided interest in the common areas, and the intended use of the apartment.   

Construction Agreement between Builder & 1st Owner

The construction agreement outlines the terms and conditions of the construction work for an apartment or property. It involves the transfer or sale of goods related to the execution of the work. The agreement specifies the work to be done, the materials to be used, the cost of the project, and the time frame for completion. Once the construction is completed, the ownership of the finished work and the materials used in it are transferred to the person for whom the work has been done.   

Copy of Possession Letter from the Builder

The letter ensures that possession of the building is delivered to the purchaser on the effective date.

Occupancy Certificate

The occupancy certificate is issued to a builder after the completion of a construction project. It is granted after an inspection to confirm if the building has been constructed as per the plan approved by the local authority. This certificate is an important document that a builder must obtain before allowing people to take possession of the property. 
 

About PropertyAngel

PropertyAngel is an award-winning second landlord platform, headquartered in Bangalore with an AUM of Rs. 1500 crores. Incorporated in 2014, PropertyAngel's tech-enabled real estate asset management services for individual apartments, villas and houses, have won awards from Zoho, grants from Facebook, and been recognized several times as among the top 10 property management companies in India.
​