For any kind of important work, documents are much needed. Suppose, you go to buy a house, probably your first house, which documents will you suppose to carry then? Very few people can give the correct answer at once. But it is very important to know that.
Buying a home is a major decision, and proper documentation is equally important. A small mistake could cost you millions. Therefore, before purchasing your dream home, ensure all paperwork is in place. Otherwise, your dream home could become a legal headache.
Suppose you bought a flat with your friend, but you paid the entire amount. Both are in their names, meaning the property is jointly owned. Four years later, you sell the flat and keep all the money in your account. You think you only have to pay the tax, but since both names are on the deed, both are considered owners in the Income Tax Department’s records. If your friend doesn’t pay the tax, they could also receive a notice, even if they haven’t invested a single rupee. Sometimes, one co-owner pays the tax, but the other receives the notice. If municipal taxes or water and electricity bills remain unpaid, they can be recovered from both owners.
Keep these documents with you when buying a house
- Original title deed and previous deeds
- Building Plan Approval and Occupation Certificate
- There should be no outstanding dues for property tax, electricity and water.
- Encumbrance Certificate (if mortgaged anywhere)
- Society NOC and Non-Agricultural Order
What happens if the documents are ignored?
- In any case your property may get stuck.
- The Municipal Corporation can seal or demolish illegal construction.
- The bank may take over any old loan.
- Water and electricity can be cut off.
- And the validity of your property may end.
