Answered on November 03,2020
Document verifications are quite different for under-construction and ready to move-in property. Especially you need to be more conscious when you buy an under-construction property
Let me explain the document verification in the sequence of under-construction to ready to move-in property.
Under construction property:
It's very important to verify the document before we make a booking amount for under-construction property. Generally, booking amount ranges from 5–20%.
Few sellers provide the documents only after the booking amount. Kindly hold and never initiate transactions unless the documents are verified and feasible to you.
1. RTC Extract: (Land record) RTC stands for Record of Rights, Tenancy and Crop Information. RTC contains the details of,
- Survey number
- Landowners details
- Type of land
- Area of measurement
- Water rate
- Soil type
- Agricultural, commercial, nonagricultural residential flood area
- Land conversion details
- Nature of possession of the Land
- Crops grown
Extract the RTC from Bhoomi citized, it cost you Rs. 10/- to download an RTC extract.
Please be note: It's advisable to extract few important documents directly from government server instead of depending on seller or builder. Chances that few unprofessional sellers may tamper or duplicate the document. Do your own research…
An RTC looks like below image,
2.Encumbrance certificate (for land): An encumbrance certificate is a certificate issued by the sub-register office of revenue department. An encumbrance certificate popularly knows as EC. An EC helps to verify,
- Mortgage liability
- Court attachment
- Property schedule
- Registration date and allotment number
- Market price and consideration price
- Deed type (Acquired through sale deed, gift deed or inherited)
- History of registered transactions & change of ownerships
If the land has been encumbered with mortgage and court attachment, property has no marketing title and cannot entitle to build an apartment.
If the property has not encumbered, it has a clear marketing title to sell, buy and build an apartment.
The encumbrance certificate is usually issued in 2 forms: Form 15 or Form 16
Form 15: is issued when the property has any encumbrance during the said period, Nature of encumbrance could be gift, partition, loan, lease, legality, and parties involved in dispute.
Form 16: is issued when the property doesn’t have any encumbrance during the said period. Also, know as NIL ENCUMBRANCE CERTIFICATE (NEC). Having a clear marketing title to build.
An encumbrance certificate looks like below image,
An EC consist of 9 columns, refer the below image for the description of each column
You can extract the EC from kaveri online services, at the cost of Rs. 40/- per EC.
3. Property Tax receipt (for land): Receipt of property tax holds the details of,
- Tax payment
- Ownership details
- Property schedule
- Application Number
- Ward number
- Khata number
Property tax receipt looks like below image.
We can extract the property tax receipt from BBMP website at no cost. It's free to extract property tax. You need PID number or application number to extract tax paid receipt.
4. Khata Certificate & extract: Khata is the recording of one's property in the books of the Government (here BBMP).
When one registers Sale Deed in sub-register office, it is just an agreement between the seller and the buyer but when the Khata (of the property) is registered/transferred to one's name, it means the property is in the current owner's name in the government books.
This also identifies the person/persons (on whose names the Khata is registered or transferred) who are primarily responsible for paying the tax.
Khata certificate & extract contains the details of,
- Khata Number
- Khata transfer fee
A Khata certificate & extract looks like below image,
Page 3:Khata can be extracted through Sakala online services.
5. Landowner and builder agreement (if join venture): If the project is a joint venture between landowner and builder. It's important to go through the joint venture agreement to understand the responsibility of landowners and builders.
The main intention of going through the joint venture agreement is to understand the feasibility & possibility of the partnership better the landowner and builder.
A joint venture agreement must be a registered agreement.
6.Building approval plan from BBMP: Approval Plan from BBMP is necessary as it states that a building in which you are planning to purchase a place of residence should be approved by the local authorities and there are no issues related to it.
7. Floor plan: helps clearer visual of the entire property. Buyers can use a floor plan alongside photos to understand the layout and space of the house. A clean floor plan shows the true size and potential of every room
At the time of booking
8. Sale agreement: It's important to execute a sale agreement on or before making the booking amount to seller or builder. This is the promissory document that seller or builder is agreed to sell the property in future date, subject to terms & condition mentioned in sale agreement.
Register the sale agreement. Registration cost is around 1% of consideration or market value, whichever is higher. Sale agreement registration cost is waivered at the time of deed registration in Bangalore.
At the time of project completion
9. Completion Certificate: Completion certificate is issued by Municipal Corporation once the project is completed as per the approved layout plan.
10. Occupancy Certificate: is also issued by Municipal Corporation after ensuring that basic amenities like Electricity Connection, Water Supply, Sewage Connection are provided as per the approved plan.
At the time of Possession
11. Sale Deed Registration: Once the project is complete in all respects and has received Completion and Occupancy Certificates from BBMP, the Builder shall transfer the property in your name by executing a Sale Deed that will be registered at the respective sub-register office.
Sale Deed is the important document of ownership, it should be retained safe. In case, you have taken a home loan, original copy of Sale Deed will be retained by Bank till the complete loan is cleared.
12. Possession Letter: Once, Sale Deed is registered in your name, the builder will give you possession letter after handing over physical possession of the property.
13. Allotment letter: Builder will provide the allotment letter for parking space.
Below are the documents require for ready to move-in property.
- Mother deed or title deed
- Sale deed
- Khata certificate
- Encumbrance certificate (EC)
- Occupancy certificate
- Tax paid receipt
- RTC Extract
- Building approval plan
- No objection certificate (NoC) from bank if property was bought on loan
- No objection certificate (NoC) from association/ Society office/ maintenance office
- Aadhaar of seller
We provide the service of document verification.
Sale agreement drafting + execution + obtaining seller & buyer sign + franking + home delivered
Sale deed drafting + execution + home delivered.
To opt for our service, please write to us email@example.com or Whatsapp +91–9742479020. Thank you for reading…
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