Top 8 Legalities to Watch Out for When Purchasing a House

Top 8 Legalities to Watch Out for When Purchasing a House

Purchasing a home is more than just a dream for most people. A person devotes a sizable portion of their life to saving money to buy a house. Also, he/she spends ample time researching the neighborhood, property prices, builders, paperwork, and more. But in practice, buying a home is quite difficult for first-time buyers. Depending on the sort of property you want to purchase, different types of documentation are needed.

Therefore for those going through the home-buying process for the first time, this article will act as a guide. Here are the top 8 legal documents you should look at before buying a house.

  • The Sale Deed

The Sale Deed contains proof of sale and transfer of property from the builder to the buyer hence, is a crucial legal document. Years after purchasing a home, if the owner decides to sell the property for whatsoever reason, this document will act as an important piece of paper for the agreement.

The sale deed is often signed prior to the sale agreement and upon adherence to the terms and conditions outlined therein, as agreed upon by the parties.

  • The Mother Deed


An essential document that traces the ownership of the property is the Mother Deed. Banks typically request this document when a buyer applies for a loan against a property. 

While drafting this document, someone can ask the local authorities (Nagar Palika or Nagar Nigam) for assistance.

  • The Sale and Purchase Agreement

The Sale and Purchase Agreement includes the agreed-upon value of the apartment for both the buyer and the seller.

The terms and conditions set forth in the Sale and Purchase Agreement are accepted by both the buyer and the seller – The negotiated price of the house is a great example of this.

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  • The Building Plan

Building Plan


According to the terms of the Building Bylaws, Master Plan, and Local Body Acts, the builder is required to get the requisite sanctions prior to starting construction. This sanction is dependent on two things: the approval of the layout and the building plan.

Prior to purchasing a home, a common error made by first-time purchasers is failing to confirm that the builder has complied with all requirements of the Building Plan and Layout Approval.

  • The Possession Letter

The builder creates a possession letter that includes the date of possession of the property. The possession letter is made in the builder’s name and drafted when the completion certificate is received.

However, the possession letter does not serve as ownership documentation for the property. The home buyer must also obtain an occupancy certificate.

  • The Certificate of Completion 

Certificate of Completion


As a buyer, always plan with consciousness and check if the residential project is inspected on completion and is in compliance with all regulations under the jurisdiction of the municipal corporation or the local development authority, according to the Completion Certificate.

For first-time homebuyers, it is not advised to purchase a property without the Completion Certificate because, without one, the building is deemed illegal and may incur fines or even cause eviction. In the event that the builder is unable to obtain a Completion Certificate, the buyer may nevertheless go to the municipal corporation and request one.

  • The Khata Certificate

A Khata certificate is simply a revenue document that contains information about the property, such as its size, location, area that it is built upon, etc. 

When applying for a home loan, it acts as proof of identity. The Khata Certificate must be included in the purchasing procedure because it is an important document that is required while applying for electricity and water supply.

  • The Allotment Letter

Allotment Letter


If you want to reserve a property that is presently being built, the allotment letter is essential. It contains all the information on how to pay the flat rate as well as any additional payments you would need to make for extra services. The Allotment letter is essential when applying for a bank loan because it specifies the amount that the buyer will need to pay.

Bottom Line

Zen Elite

Never rush into buying a residential property. Check all the paperwork, make use of legal or property related consultancy services (if required) and only after conducting a detailed investigation make your choice of buying a home. If you are looking for a hassle free investment option in the Kharadi area, Pune, visit Zen Elite. Among Other common real estate projects in Kharadi Pune, Zen Elite stands out with its zen architecture and value for money offering.

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