Documents related
to Home Loans
Documents required to be checked if you
are buying the house from a builder
An allotment letter from the developer
on paying the booking amount
Normally, in a project, which is under construction,
the builder asks for an upfront booking amount of about 15% of
the cost of the flat. An allotment letter is then issued to the
purchaser.
Agreement for Sale
After receiving the booking amount, the builder will get the Agreement
for Sale stamped by paying the relevant stamp duty, which is normally
borne by the purchaser. After being stamped, the agreement is
signed by both the purchaser and the builder. Within a month of
signing, this agreement is registered with the Sub-registrar appointed
by the State Government under the Indian Registration Act, 1908.
The agreement has to contain the liability
of the promoter/builder to construct the building according to
the plans and specifications approved by the local authority.
It should also contain possession date, price to be paid by the
purchaser and the intervals at which the installments for the
full payment are to be made specifying stage of construction,
the precise nature of the body to be constituted of the persons
who would take the flats, details regarding the common areas and
facilities specifying the percentage of undivided interest in
the common areas and facilities appertaining to the apartment
agreed to be sold, a statement of the use for which the apartment
is intended.
Copies of the title certificate, a copy of
the approved plans and specification, a list of fixtures and amenities
including provisions for lifts to be provided should be attached
to the agreement.
The sale agreement should contain a declaration/representation
by the promoter/seller that he has not encumbered the property
in any manner whatsoever and entered into any other agreement
to sell/lease/license with any other party. It needs to be specified
whether the property is vacant or in possession of any other party
other than the seller.
Documents required to be checked if you
are buying a resale flat
For flats being purchased in a registered
co-operative society
Prior to the execution of the sale/conveyance
deed of the property the purchaser should ask the seller to produce
a 230 A certificate issued by the Income Tax authorities. For
this the necessary application has to be filed in Form no. 34A.
This certificate would indicate that the seller
has no dues/outstanding in terms of the income tax payable him.
As per the Income Tax Act, 1961, this certificate is a mandatory
requirement for a property transaction where the value of the
transaction is in excess of Rs.5 lakh.
Once the previous sale deeds, conveyance deeds
are vetted by the purchaser's advocate and the purchaser decides
to go ahead with the transaction, he should ask the seller to
apply to the society to issue a 'no objection' certificate indicating
that the society has no objection to transfer the share certificate
in favor of the intended purchaser and admit the purchaser as
a member of that society. The certificate should also mention
that the seller has no default/outstanding payments to be made
to the society as of date.
