Checklists of Property Documents that you need to hand over to the buyer before you sell your house

One of the mandatory and crucial steps at the time of selling apartments is essentially the checklist of property documents that needs to be kept handy. As you transfer your house into another owner’s hands these documents also needs to be transferred to them.

It is not the case with Thrissur alone, but for a matter of fact, in every other Indian state, the document verification process is one of the grilled up tasks that complicates the process of selling flats or apartments as the government emphasizes a strictly legal, statutory and regulatory property transaction strategy.

As per certain researches and statistical surveys, it is quite clear that around 80% of the sellers are negligent of the importance of getting all the property documents verified and are left in the dark, which actually delays the sale process when they plan to sell. Buyers have done their part of research when they come to buy the flat from you. You need to be prepared to produce these documents whenever buyers demand to make the selling process smoother.

But most of the time both the buyers and sellers have minimal information on the importance of getting the property documents verified. So, there are certain things that buyers and sellers need to know before they plan to sell or buy a house.

 We have decided to help you with the property transaction process by sharing the list of property documents – Part I that needs to be handed over to the buyer regardless of whether you are selling 1 BHK or 3BHK flats in Thrissur:

1. Title Deed / Conveyance Deed/ Mother Deed/ Sale Deed

Conveyance Deed or Sale Deed forms the major legal property document that marks the evidence of sale as well as indicates the transfer of ownership of property from the seller to the buyer. Also, it is one of the crucially important documents that is essential for resale by the buyer in future proving his ownership over the property. A sales deed acts as per the sale agreement which is drafted according to the terms and conditions of property transaction as agreed by the seller and the buyer. Once the sale agreement is executed, instantly you can proceed with the execution of the sale deed. You can check out things to know about conveyance deed and why it is important

No matter whether you own a 1 BHK or 3BHK apartments in Thrissur you need to mandatorily get the Sale Deed registered from the Sub Registrar office that comes under the jurisdiction of the area in which the property is located and hand it over to the buyer.

Once it is handed over to the buyer they have got only 4 months of time to get the Sale Deed registered from the date of execution or else it is liable to be fined or it becomes invalid.

It is mandatory to produce all previous Sale Deeds in original during:

• Property Purchase

• Home Loan

2. RTC Extracts

It is mandatory to define the “Title of the land” to identify whether the property was constructed on the converted land. For instance, it provides information on establishing “whether the land that was previously used for agricultural purposes has been transformed into commercial one”. Generally, RTC Extracts are issued by the Village Accountants.

All the information related to the land that includes the land area extent with the survey number or sub-survey number, the extent of Kharab land, the names of the present and previous owners, their corresponding holdings and also the names of the tenants are contained in RTC extracts. Also, it contains other relevant details like the kind of soil/crop, any previous mortgages that was made, charges exercised on the properties contained on the land, the land’s status that implies whether it is Inam land or not, in case of land conversion the exact date (situations in which agricultural land is converted for non-agricultural usage) & the conversion order number, and also any related references to mutants or inheritance with proof certificates that indicates the transfer of property ownership, etc.

It is not a mandatory document and there is no need to produce it in original though it needs to be produced when you are selling your.

3. Khata Certificate and Extracts

Khata is a Hindi word that originally means “account” though it might be known in different names across different states. With regard to the property transaction, Khata represents the account of a person who holds property in the city. Khata indicated in this context are of two types: the Khata Certificate and the Khata Extract. Khata certificate serves 2 main purposes:

• Registration of a new property

• Transfer of a property

This approval is provided by the Assistant Revenue Officer of the respective area.

The account is entered in the records maintained by the local municipal committee which indirectly confirms that the apartments or flats have been constructed according to the approved plan.

It is mandatory to obtain a Khata Certificate for the registration of your new apartment after completing the tax payment process. The Khata Certificate is issued stating that a person “X” is the owner of a property No “N”. This certificate is mandatory when you apply for:

• Water & or electricity connection

• Trading and building license.

Also, the Khata certificate that is issued will be handed either to the owner or his immediate family members.

Khata Extract as the name suggests extracts information such as the name, size of the apartment, use of the apartment (commercial or residential purpose), annual property value and also when it was last assessed from an assessment register and is mandatory while applying for trade license and also when you buy apartments in kerala.

It is mandatory to produce it in original during:

• Property Purchase

• Home Loan

4. Mutation Register Extracts

Again the Mutation Register Extracts is required to define the “Title of the land” whether the property is located on converted land as in #2. It is usually issued either by the Tahsildar or by the Village Accountant. It provides access to the extracts from a mutation register or an inheritance certificate that contains the details of the previous owner, present owner, mode of acquisition of the property, the total extent of the property and also an order stating that the Khata account of the property was transferred into the ownership of the present owner, that is in your name. It is not mandatory to produce it in original though it might be needed at the time of property sale.

5. Joint Development Agreement

This is actually an agreement that happens between the landowner and a builder indicating the original title of property ownership. Usually, the key aspect of a Joint Development Agreement is that the builder undertakes development activity on the land acquired from the landowner. There exists a joint development ratio that is agreed between the two parties depending upon the price of the land. In certain cases, the trend that is being witnessed in most of the areas in Thrissur is that the builder allocates a fixed number of flats or apartments to the land owner though there is no money flow between the two. In favor of this, the landowner agrees to part with his land and transfers the ownership of the land in the name of the builder. It is mandatory to produce the document at the time of the property sale to prove the original ownership of the property as to whether it is with the builder or the landowner.

6. General Power of Attorney

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A “power of attorney” is a kind of legal authorization that empowers one person the right to authorize another person to act on his or her behalf as a legal representative and take all decisions pertaining to legal and financial strategies related to property transaction for him/her and this includes the sale or purchase of property on behalf of the buyer or the seller. This is mandatory to prove that the previous sale or purchase has been carried out by the person authorized by the buyer or seller on their behalf. It is mainly required for:

• Property Purchase

• Home Loan

7. Building plan sanctioned by the Statutory Authority

This is mandatory to prove that the property is authorized or unauthorized and as the name suggests, the permission for the construction of buildings is issued based on a pre-determined set of rules and regulations and also this is mandatory for the approval of building plan approval. It is mandatory to produce the document though the buyer need not produce the original at the time of property purchase. But, you need to provide them with the original document at the time of selling your house.

8. NOC from Electricity Department/Pollution Control Board/Water Works/ Air Port Authority

NOC is an important and mandatory requirement that the builder needs to seek approval for before starting the construction work. NOC has to be obtained from all the key government departments including the Electricity Department and the Pollution Control Board for Fire & Safety etc. This is a mandatory requirement though the buyer need not produce the originals at the time of property purchase. But, you need to provide them with the original at the time of selling your house.

9. Supplementary agreement / Ratification Deed (if any)

This is mandatory to catch any kind of changes, modifications or extensions that have been made across the certain clauses of Principal Agreement. It is mandatory to produce the supplementary agreement at the time of property purchase though the buyer need not produce the originals. But, being the seller of the house you need to hand them with the originals before you transfer the ownership of the property into their name.

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

This is mandatory as it contains the description of the property and the project specifications as issued by the Builder or Housing Society. Regardless of whether the buyer will be applying for a loan to buy your house for sale in Thrissur, they need to produce an allotment letter issued by the Builder/ Housing Society with the information such as description of the property being sold/bought by the two parties, and also the amount of money the buyer has paid to the seller which implies the bank needs to finance the remaining amount. Usually, the Allotment Letter is issued on a Letterhead with the authorization of the related authority and the agreement of Sale is documented on a Stamp Paper. Also, the Allotment Letter contains all the pertaining details of the Project that have been put on sale along with the other detailed specifications of the project. It is mandatory to produce it in original at the time of:

• Property Purchase

• Home Loan

11. Sale Agreement between Builder and 1st Owner

It is one of the mandatory documents that contain the liability of the Promoter/Builder to construct the building as per the specifications approved by the concerned local authority. It should contain the details such as tentative possession date, price to be paid by the buyer, and a number of installments that needs to be made towards the full payment at each of the different stages of construction. Also, it should contain the details of the corporate body of the persons who will occupy the flats, common areas and facilities and amenities. It is mandatory to produce the document at the time of purchase and home loan assistance.

12. Construction Agreement between Builder & 1st Owner

This is another mandatory property document that is essentially a work contract. This agreement needs to be produced in writing as it deals with the execution of the work related to the construction of the flats or apartment and also the sale or transfer of the goods that are essentially necessary for the execution of the contract. It is mandatory to produce the original documents during:

• Property Purchase

• Home Loan

13. Copy of possession letter from the builder

As per the agreement, the possession of the said building is transferred to the buyer and is effective from the date as specified in the letter. This is mandatory to be produced in original in case of 1st purchase usually from the builder.

14. Payment receipts paid towards the builder

You should not forget to collect the payment receipts in original from the builder. In the case of resale, you can produce the payment receipts that have been issued by the builder to the 1st owner. It is mandatory to produce the originals.

15. If any loan on the property (Current or past) / Original Property Documents with Bank

To ensure that the property is no longer under mortgages it is necessary to produce the following list of property documents that includes:

• All the set of original property documents with the Sellers Home Loan Provider

• Closure letter (with penalty, if any)

• The closure letter/ NOC issued by the seller’s concerned bank if the loan is closed.

It is mandatory to maintain and verify the original documents when buying or selling the property.

We will discuss the remaining checklist of documents to be verified during property transaction in our next blog post.

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