Real estate is a well-developed and fast-growing industry, having its own prominence for decades because of its money lending capability, yet the most thriven point of investment. Normally, the investors or people who are looking for properties end up meeting the mediators /agents for property surfing. The properties that confer the right to sell or manage by real estate property developers or agents are likely to be scrutinized before confirmation, despite their location and the paramount considerations and process to take ahead prior to financial justifications are learning basic insights like GST for land or property according to the recently passed bill, documents to verify, and the state regulations on real estate as of Real Estate Act. 

According to the 33rd GST council meeting held in February 2019, there is a new GST charge introduced for residential real estate. As per this council, the GST is 5% on the non-affordable housing segment, 1% on the affordable housing segment without Input Tax Credit (ITC), and 12% for commercial properties with ITC. The real estate developers can claim the ITC for the input material like bricks, sand, labor, etc. if they had paid GST for those before.  

What is RERA?

Real Estate Regulatory Authority (RERA) was introduced to protect the buyers of properties from deception. This act clearly describes the importance of registering one’s property under the act and its penalties in case of negligence. Hence, it is crucial to check for the registration details of the property before signing the legal documents. Every real estate agent or property holder should register the specific property before selling or should pay Rs.10,000 every day if such action continues. It is advisable to collect all legal documents before involving in buying. 

What are the important legal documents needed for buying?

 Property Buying is a back-breaking process as well as it is crucial to be discreet throughout the entire purchase process. Buying procedure demand many legal documents to evaluate and agree with the contracts. Since a minor distraction can bring a heavier cause of deflation to your financial status, it is always essential to follow every tip of the law to avoid pitfalls. 

Consider following all these documents one by one to complete the buying successfully and without disappoints.

Agreement to Sell

This is the first document to prepare as an anticipation of a seller. It comprises complete details of the property, including charges. 

Sale Deed Document

This proves the ownership where the authorization is transferred to the concerned person with the title deed as the name of the buyer. 

Title Search report

This has the history of the property of the title holders with an accurate description of the property and clarifies whether it has any trouble in transactions. This is important for home loans. 

Khata Certificate

This holds the entire details of the owners such as property size, location, carpet area, Build-up area, tax, and property identification number and it’s the proof for the property being registered in the municipal records. 

Receipt of Property Tax

This describes whether the previous property holder had paid the taxes with no pending due. 

Occupancy Certificate

This Certificate is provided by the municipality after the construction of the building to establish that it was constructed according to the sanctioned plan. 

Statement from the bank regarding an outstanding loan

This is important if there is any loan claimed already on the property. It is safe to get the statement as it discloses the full redemption amount. 

No-Objection certificate

Ask the builders to produce all the NOC’s documents from different departments like sewage board, pollution, environment, traffic, etc. 

Building Sanction Certificate

The statutory authority will give the sanction letter to ensure the buyers that developers didn’t deviate from the sanctioned plan. 

Power of Attorney 

Original Power of attorney is required if anybody is authoritative on the owner of the property. 

Conclusion

Buyers and sellers are strictly recommend to follow all real estate regulations to avoid later dispute and disagree that might impact your reputation.