This blog is a continuation of Part-1 which can be found here. The last blog ended with brief information about the Encumbrance Certificate (EC) which records all the transaction performed on the property. Though EC is an important document in the purchase process it is not enough to prove ownership of the property which is why you need Possession Certificate. So here we go, read on to know about Possession Certificate and other legal documents required for buying a flat in Hyderabad that are important during the purchase process:
Key Legal Documents required for buying a flat in Hyderabad
Certificate of Possession:
Possession certificate is a document made by the seller or a builder that states that the possession of the property has been transferred to the buyer after the payment of the negotiated sum. It contains property description, its add-ons and also the date of possession of the property.
In essence, the possession certificate is proof that the property has been possessed through legal means from the buyer. With this certificate, the buyer holds complete authority on the property and has all rights to perform enhancement to raise its value to rent out or resell. Though Certificate of Possession is enough proof that the property has been transferred to the buyer in a legal means, alone, it is not enough to confirm the legal ownership without Occupancy Certificate.
While Certificate of Possession is given by the seller (builder) to the buyer to state the transfer of ownership rights, the Occupancy Certificate is given the local regulatory bodies to the seller after the building is found to be constructed as per the building regulations, law and codes. The Occupancy Certificate stands as written legal proof that the property is ready and is suitable for occupation. It is the seller’s responsibility to obtain this certificate which is issued only after the project is complete and is fit to occupy. It is an important document for availing water or electricity connection or to avail loan from lending institutions and is considered desirable while buying a resale flat. Together with the Certificate of Possession, Occupancy Certificate stands to provide legal ownership of the property to the buyer.
A builder is required to give an allotment letter if you are booking an under-construction property. This allotment letter includes the details and description of the property, payment and construction schedules, delivery dates, and additional charges for maintenance or facilities. It is generally issued after payment of at least 15% of the amount to the developer and is critical for availing home loans for banks or lending institutions. The allotment letter also comes in when the builder deprives the buyer from the delivery of property as mentioned. With this letter, the builder is legally bound to deliver the promise and is liable to pay the refund if he fails to do so.
The sale deed or final deed is drawn after the terms and conditions of the sale agreement are settled. It lays down complete information about the details of the parties’ involved, the final price of the property, time frame for handing the property over to the buyer along with other important details and documents.
Before the sale deed execution, the buyers are advised to make sure that the property title is free from all the encumbrances and all the statutory payments related to cess, property tax, water/electricity and other bills are cleared with no further dues. After the payment is made, the sale deed is executed and all the ownership rights of the property are officially transferred to the buyer.
The list of legal documents required for buying a flat in Hyderabad doesn’t end here, but the above 8 in part 1 and part 2 are the key documents that are needed to be thoroughly verified during the purchase process. Now that you are equipped with sufficient knowledge you can now continue with your home search and if you are looking for luxury 2BHK/BHK in Hyderabad, we can proudly suggest you our NSL East County the premium gated residential community in Uppal. For complete information, come this way: https://www.nslinfratech.com/nsl-east-county-hyderabad.php