Rahul Khanna, a simpleton from Bangalore has hit rock bottom since the time he has invested in his most ambitious dream home – a towering apartment in Jayanagar, Bangalore. One must be wondering as to what went gravely wrong despite his ambitious dream being fulfilled? His major folly was his hasty decision of investing in a property without vetting all the legal property documents fearing that he would lose the deal. But alas! This minute slip by him has today put him in a legal battle with the seller. Property documents are a vital part of any property investment, be it an empty plot or a fully furnished apartment. Here is a list of important property documents required to buy an apartment or an independent house.
1. Sale Deed:
A Sale Deed is the core legal document that acts as proof of sale and transfer of ownership of the property from the seller to the buyer. A Sale Deed has to be mandatorily registered. It is important that before the Sale Deed is executed one should execute the sale agreement and should check for compliance of various terms and conditions as agreed upon between the buyer and the seller. Before executing the Sale Deed, the buyer should check whether the property has a clear title. He/she should also confirm if the property is subject to any encumbrance charges.
* A seller should settle all the statutory payments such as property tax, cess, water charges, society charges, electricity charges, maintenance charges etc., (subject to the agreement) before executing the Sale Deed.
2. Mother Deed:
Mother Deed, also known as the parent document, is an important legal document that traces the origin/antecedent ownership of the property from the start (if the property has had various owners). It is a document that helps in the further sale of the property, thereby establishing the new ownership. In case of absence of the original Mother Deed, certified copies should be obtained from the registering authorities. Mother Deed includes the change in ownership of the property, be it through sale, partition, gift or inheritance. It is very important that the Mother Deed records the references to previous ownership in a sequence and should be continuous and unbroken. In case of a missing sequence, one should refer to the records from the registering offices, revenue records or the recitals (preamble) in other documents. The sequence should be updated until the current owner.
3. Building approval plan:
A building plan is sanctioned by the BDA (Bangalore Development Authority) or BBMP (Bruhat Bengaluru Mahanagara Palike) or BMRDA (Bangalore Metropolitan Region Development Authority) or BIAPPA (Bangalore International Airport Area Planning Authority) without which the construction of the building is illegal under the Karnataka Municipal Corporations (KMC) Act. A building owner has to get an approved plan from the jurisdictional Commissioner or an officer authorized by such Commissioner. However, the authorities sanction a building approval plan based on the zonal classification, road width, floor area ratio (FAR) and plot depth. A set of documents are required to be submitted by the owner in order to obtain a building approval plan. The documents include- Title Deed, property assessment extract, property PID number, city survey sketch (from the Department of Survey and Settlement and Land Records), up-to-date tax paid receipt, earlier sanctioned plans (if any), property drawings, 2 copies of demand drafts, foundation certificate (if any) and a land use certificate issued by the competent authority (viz., Dy. Commissioner). It is mandatory that the building owner hires a registered architect who will draw a plan meeting the applicable bye laws. One can get a building approval plan within 4-5 working days if all the requirements are met, via the newly invented BBMP software- Automated Building Approval Plan.
4. Commencement Certificate (For under construction property):
A Commencement Certificate is a legal document issued by the local authorities (BDA/BBMP & alike) after the inspection of the site. This document states that project meets the give criteria and helps in the commencement of a construction on a site by the builder. Failing to acquire a Commencement Certificate will result in the construction being considered illegal, levy penalties and can even attract an eviction notice.
5. Conversion Certificate (Agricultural to Non-Agricultural land):
With a vast amount of land being agricultural in nature in Karnataka, a Conversion Certificate is mandatory to be obtained from the legal body for the property. A Conversion Certificate is issued to change the use of the land from agricultural to non-agricultural purpose from the competent revenue authority. Further, the competent revenue authority requests the Department of Town and Country Planning to issue an NOC for the conversion of land for residential purpose. There are a certain set of documents to be submitted by the owner to acquire a Conversion Certificate. The documents required to obtain a Conversion Certificate are;
3 copies of the R.T.C extracts, Village map, land sketch, certified copy of the land tribunal, zonal certificate, Title deed, no dues certificate by village accountant and Mutation Records (MR) copy.
6. Khata Certificate and Khata Extract:
Khata is derived from the word ‘account’. It is an account of a person owning a property. It typically consists of (a) Khata Certificate and (b) Khata Extract. A Khata Certificate is mandatorily required for the registration of a new property and the transfer of a property. Khata Extract is nothing but obtaining the property details from the assessment registrar. It is needed while property buying and acquiring trade license. The Khata is widely referred to as A Khata and B Khata (Revenue records extract). ‘A’ Khata has properties listed under BBMP jurisdiction with legal property construction and ‘B’ Khata has properties under local jurisdiction with violated property constructions. One should avoid buying a B Khata property as it will be deemed as an illegal construction. Nevertheless B Khata may be converted to A Khata under certain schemes by paying penalty to the Government.
7. Encumbrance Certificate (EC):
Encumbrance means charges in the ownership or liabilities created on a property that is held against a home loan as security. An EC consists of all the registered transactions done on the property during the period for which the EC is sought. Simply put, it is a certificate sought for a particular period evidencing the property purchase/sale, the presence of any transaction or mortgage. One should submit a copy of the Sale Deed to obtain an EC. A person applying for an EC should fill in the Form 22, affix a non-judicial stamp and submit it to the jurisdictional sub-registrar’s office. Complete residential address, property survey number, property location, the sought period, property description, its measurements and boundaries should be mentioned in the Form. A nominal fee amount will be charged on a yearly basis. The time taken to obtain an EC will be between 3-7 working days or more depending on the period sought.
8. Betterment charges receipt:
Betterment charges are also known as improvement fees/development charges that are to be paid to the BBMP before a Khata can be issued. Currently the developers are entitled to pay a fixed amount as betterment charges to the municipal body. A receipt of the same should be obtained at the time of property buying.
9. Power of Attorney (POA):
A POA is a legal procedure used to give authority to another person by the property owner on his/her behalf. One can either give a Special Power of Attorney (SPA) or a General Power of Attorney (GPA) to transfer one’s rights over one’s property.
10. Latest tax paid receipt:
Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the government/municipality. For properties falling under the BBMP jurisdiction, it is mandatory for property taxes to be paid up to date so a buyer could get a Khata issued in his name. It is therefore important for the buyer to make enquiries with the government/municipal authorities to ensure that all the dues are cleared by the seller. The buyer should ask the seller for the latest original tax paid receipts and bills and check the details of the owner’s name, the tax payer’s name, and the date of payment on the receipt. If the owner does not have the tax receipt, the buyer can contact the municipal body along with the survey number of the property to confirm the ownership of the land. Nevertheless, the buyer should also ensure that other bills such as the water bill, electricity bill etc. are paid up-to-date.
11. Completion Certificate (for a constructed property):
A Completion Certificate is issued by the municipal authorities denoting that the building is in compliance with their rules in terms of height, distance from the road, and is constructed as per the approved plans etc. This document is important at the time of purchasing a property and seeking a home loan.
12. Occupancy Certificate (for a constructed property):
When the builder applies for this Certificate, an inspection is carried out by the authorities to ensure that the construction meets all the specified norms. This certificate is obtained after the completion of the construction. It is important at the time of buying a property, seeking a home loan, before the builder allows people to take possession of the property and, for the transfer of Khata. Basically, it certifies that the project is ready for occupancy.
While it is important to seek all the above documents from the seller at the time of buying a property, it is also critical you deploy a competent property lawyer for vetting of the said documents. Specific advice should be sought about your specific circumstances.
Hi,\r\n\r\nI want to buy 2BHK flat and want to know what all documents do i need to check as a buyer if the property is in prelaunching stage??\r\n\r\nCan you please email me the list on pmaliramani@yahoo.com\r\n\r\nWill be a great help.\r\n\r\nRegards,\r\nPrince
Hi Prince\n\nThere is a list of documents that are indicative, as given in the above blog. However, this list is not comprehensive and you are advised to check with a competent lawyer once you have paid a token advance and collected a copy of the legal documents for scrutiny. If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444
Hello Sir,\r\n\r\nI am planning to buy a 2BHK flat( 900 to 1100 sqft) in Bangalore south within budget of 30 Lakhs. Can you pls suggest me any builders/projects within this range? \r\nPls explain me what are all the documents needs to checked before buying a flat for the both cases (ready to move/under construction).\r\nAlso what is the difference between CREDAI certified builder & Non CREDAI Builder, what are all the benefit we get from CREDAI for an individual buyer.\r\n\r\nEagerly waiting for your quick response.\r\n\r\nThanks & Regards,\r\nKishor Kumar V.M
Hi Kishor\n\nYou can look up on different real estate portals to look for projects within your budget. We don?t endorse or recommend any builders. Evaluate builders based on projects they have done, their pedigree, their track record of completion on time, pricing, location and obviously feedback of clients who have bought into their projects.\n\nA list of documents that are most commonly required to check on the legal title is given in the same article above.\n\nHowever you must understand that this list is only indicative and not comprehensive because the documents that need to be verified depend on many factors such as past transaction history, family tree, land use conversion, involvement of multiple survey numbers, approvals and clear title of the land on which the construction is being done. So it is impossible to give a straight forward list which will fit every property. When you book an apartment, you will be given access to copies of the documents for legal verification. Please take it to a competent lawyer and check for clean title. Based on scrutiny, the lawyer may insist or more documents to clearly prove title, ask for those from the builder and provide it. Proceed with the purchase only if you get a clean legal opinion. Ensure that your booking allows your advance amount to be returned back, if you are not satisfied with legal title.\n\nMost large builders are part of the CREDAI which is an association of builders to represent their case and needs to the government. Will an automotive car manufacturer?s association help you if your car is defective. Absolutely not! Same is the case with CREDAI, it is a representative body for the builders, consisting of only builders not regulators. So there is practically nothing to choose based on the CREDAI tag, but that said most large and reputed builders are all part of CREDAI.
Hi Sir,\r\n\r\nWe are planning to buy an a flat at Horamavu. The land is A- Katha and has approval for building. But they have deviations from the approved plan by building 9 penthouses at the terrace. The possession will be on Jan 2016 and they started construction in Dec 2013. The builder dont provide OC. We enquired with our friends they say once it is registered and the building association is formed, all the owners can go to BBMP/BDA office to obtain OC by paying the penalty. Also you will katha for the flat. Is this possible?\r\nAlso this land falls under the eco-sensitive zone and it has been de-sensitified by paying de-sensitifying fees to BDA. Will this cause any problem in the future?\r\nThis land is in between 2 lakes near Horamavu and not sure if this will have any problem. But we are really interested in this project due to this construction.\r\n\r\nWe have also seen another property which was completed in 2013 and still flats are available. It provides OC but it is much closer to one of the lakes mentioned above. But the construction comparatively is not that great.\r\n\r\nCan you help us on this as we have already paid the token advance and need to give our confirmation by tomorrow.\r\n\r\nThanks,\r\nVarun.
Hi Varun\n\nThis is a classic problem where builders get land with A-Khata, obtain approvals for construction from BBMP/BDA/BMRDA/Town Planning (as the case may be) and also get clients to go for bank loans (on approved project basis) and sell their project. While the project will be eligible for OC and A-Khata if constructed as per plan approvals, they blatantly flout all rules and build those penthouses that are not approved. Now the OC is given only after project completion and if the building was not constructed as per approvals then then it becomes INELIGIBLE for OC and A-Khata.\n\nYou cannot obtain an OC by paying penalty after the association is formed because buildings completed after Oct.2013 are not eligible for the Akrama Sakrama and further that regularisation itself is still stuck in the courts. So it is anyone?s guess as to what will be the status of buildings that violate after this cut off date and even if regularised what kind of penalties will be applicable. If you were asked to pay a penalty of 10%, 5 years from now based on the guideline value then, does it make any economic sense to buy a violated property?\n\nIf it is an eco-sensitive zone, am not sure if they are allowed to construct. There has to be certification from the pollution control board and you need to see if it encroaches into the lake by checking with the lake development authority. To our knowledge there is no concept of de-sensitizing fees payable to BDA. Either it is safe or it is not allowed due to the region falling under the forest department. Only a scrutiny of documents will make it clear and at this juncture we can?t comment with the limited info available.\n\nIf the other building is completed and provides for an OC, we would certainly recommend that. But again make sure that you purchase it only after a thorough legal scrutiny by a competent lawyer. If you need assistance in legal scrutiny, you can reach us at services@homeshikari.com or call us at 080-67684444.
Hi Sir,\r\n\r\nI am planning to buy a flat in Bangalore. The Plot has an A-khata certificate. But whe i asked for the flat , the buildr claims that A-khatah certificate is there for only plot, not flat. Also But when i checked the plan, the builder has made many changes to the approved Plan. He accomodated extra pent houses. Also he showed one kitchen at each floor in actual plan, and he constructed two flats each floor.\r\nWhen we asked this to the builder, he is asking us to buy the flat which has kitchen shown in the Plan.\r\n\r\nCan we go ahead with buying the Flat which has kitchen shown in the Plan. Kindly advise. \r\nAppreciate your Feedback,\r\n\r\nRegards,\r\nGadhu.
Hi Gadhu,\n\nThe plot may be A-Khata but a building that violates or deviates from the building approval will not be eligible for the A-Khata. You are buying one unit of that building and though your particular flat may have the kitchen as per plan approval, since the entire building was approved as one plan and since there is a deviation, your flat will also not get the A-khata.\n\nEven if Akrama Sakrama is implemented after court approval it will be applicable only for apartments completed before Oct 2013 and only if the violation is within permissible limits. Here you will be taking a risk with buying a flat that is not eligible for the A-khata and there seems to gross violation which could attract severe penalties in future.
Hi,\r\n\r\nWe have heard from a builder stating that for Builder floor Commencement certificate will not be issued as it is a builder floor apartment. Is that true or even builder floor apartment requires Commencement certificate. Pls suggest.
Hi Swetha\n\nThat is incorrect. All apartments and residential buildings whether they are constructed as flats or builder floors need to follow the plan approval and hence a commencement certificate is also required. Only on the basis of the plan approval, commencement certificate and an inspection immediately post construction completion, an occupancy certificate will be given.\n\nThis means that there are bound to be deviations and violations of the plan.
hi..we have planned to purchase a flat in shraddha palmera in panathur..the owner says he has applied for OC..it is under progress…the owner had planned for a super market in 3 flats n as OC is not issued for this reason… he is reconstructing flats n selling them… can we purchase the flat?he is assuring..they will get OC in 2 months…
Hi Shankar\n\nIf he is promising OC, then please get it in writing or include it in the sale agreement. If the builder agrees to that you can proceed because even if he breaks that promise you have recourse for it in the consumer courts. If he is not willing to give in writing then don?t trust such assurances.
Hello Sir,\r\nWe are planning to buy a flat in hope farm junction. The builder has provided us with a set of legal document copies. There is a thread of suspicion in the previous sales of this property. A person A bought this land under his son 1 (minor). After A passed away, his children partitioned this land and it went from son 1 to son 2. But this has no registration, but only an affidavit and oral partition memorandum. Does this can cause any problems in the future?
Hi Twinkle\n\nIt is hard to comment on such issues without reviewing the documents in detail. Whenever there is a minor interest it is important to be very cautious about it. We would strongly suggest that you take legal opinion from a competent lawyer on this aspect. If you need help, please email us at services@homeshikari.com or call us at 080 67684444
Dear Sir,\r\n\r\nAm planning on purchasing an apartment with DS MAX at Sarjapura. I need to know what documents that I need to check if the construction / property is legal here. They have said the project is SBI approved along with BMRD approved. \r\n\r\nKindly assist as am going to meet their legal team tomorrow.
Hi Supriya\n\nPlease get a copy of all the documents necessary to do a title check with a lawyer, if you are paying any token advance. We have put up a list of generic documents you need to check (http://support.homeshikari.com/blog/12-important-documents-check-buying-property-2-795/). However, land transaction history, conversion and transfer of titles from one person to another may vary vastly from property to property. Hence it is best to take a legal opinion from a competent lawyer before proceeding with it. Do not take the legal opinion of the builder at face value. Do your own due diligence.\n\nFurther, SBI approved means possibly that the land is A-Khata and a BMRDA plan approval has been obtained for the construction. But you need to check for commencement certificate and also whether they will give an OC (occupancy certificate). Don?t buy if you won?t get a OC. Insist that you need the clause for OC in the sale agreement if you intend to buy.\n\nEnd of the day, please take an independent legal opinion seriously before you make the decision. If you need assistance, you can email us at services@homeshikari.com or call us at 080-67684444
Firstly, let me thank you for answering my previous post, through which I was able to get an agreement from the Promoters that all money transaction will happen only with the Owner of the flat because they could not show me any legal agreement between them and the owner.\r\n\r\nNeed your expert guidance in the next stage.\r\n\r\nI am in bit of a fix at the last moment re the Sale Agreement. The property I am planning to buy is a Joint Development and flat I am interested in is the Owner’s share but the problem is there are multiple owners (They do have a Partition Deed in place, which specifies the allocation of flats between the number of owners)\r\n\r\nConcerns for which I need your guidance.\r\nThere are two blocks Block 1 and Block 2 (For some reason they had started constructing the Block 2 first before Block 1, when asked, said that for Vastu reasons). Now the Block 2 is almost complete more than 95% done, I think only the painting is left and can see couple of families have already moved in. Whereas, Block 1 is only 60 – 70% completed. I am interested in a flat which is in Block 2.\r\n\r\n1. When I received the draft of the Sale Agreement, the agreement was only in the name of the Owner of that particular flat (as per the Partition Deed).\r\nThough the Block 2 is nearing completion but because of Block 1 is still under construction, should all the owners and builders name need to be mentioned in the Sale Agreement? Because there is no Katha or OC in the name of the individual owner yet. Please advice.\r\n\r\n2. The draft sale agreement states the full agreed amount of the property which is 75lacs. whereas I was told that the Sale Deed will be made only on the Guideline value which will be around 40 lacs. Is this fine?\r\nBecause my concern is, should the Sale Agreement Value and the Sale Deed Value be the same.\r\n\r\n3. I checked the same (point 2) with the bank who are financing it, they said it is OK for it to be like that. Because, at the time of disbursement they will be handing over two different cheques to the owner. One for the Sale Deed value and other no idea for what (they just couldn’t give an explanation).\r\nIs this good practice or am I getting into some trouble here?\r\n\r\n4. I suggested to the representative (promoters) of the owner about having two agreements One – Sale Agreement and Two – Construction agreement that way there is no discrepancy between Sale Deed and Sale Agreement. They said that the Construction Agreement is done when we buy it from the builder and not the Owner. Is this true?\r\n\r\nWhat do you suggest I do at this instance and What are your suggested alternatives?\r\n\r\nThank you in advance for your timely and very valuable advice.\r\n\r\nRegards\r\nShankar
Hi Shankar,\n\nWe suggest you to consult a competant lawyer with your queries.
Hello Sir,\r\n\r\nIam Planning to buy a flat near Mahadevapura, Bangalore. the flat is still under construction. As per your advice I have validated the documents, the Land has A – Katha, however the builder have completely deviated the BBMP approved plan. on the other documents like OC, CC etc., the Builders says if the flat is less than 10000 sqft the BBMP will not provide OC & CC.\r\nAlso builder is claiming there will be shortly increase of 30% on the registration fee.\r\nRequesting your advice and let me know if I can go ahead with the purchase.\r\n\r\nThanks and Regards !
Hi Mithran\n\nIt doesn?t matter that the land is A-Khata because the building deviation will count as violation and you won?t get the OC and A-Khata after completion of construction. Their claim that buildings below 10000 sq.ft can violate and won?t be issued an OC in any case is not right. It is false.\n\nRegistration fee is not increasing, but the guideline values are expected to be increased which will lead to increase in costs. However, be cautious about properties which won?t get the OC. Take a proper legal opinion and proceed only if you are comfortable.
Hi Sir / Madam,\r\n\r\nI have purchased a flat in Nalasopara which was under construction. At the time down payment all receipts made by developer for 2nd flr flat (as per our interest). But after completion of work, i found another person is leving in our flat. I asked him to leave the flat for which i had paid but as per him he already buy that flat from developers and denied to leave the same. I went to the developer and asked but he told, I handover that flat someone else and you can accept flat at 3rd flr., He prepared the agreement and we paid whole amt. For 1 year we take charge of flat & lived there. after that shifted to another place in mumbai. Now builder saying that you have to pay gharpatti for last 4 years from construction started and demanding money. I paid him 8 k for payment of gharpatti in last year but even after that he didnt pay anything in grampanchayat. It has been seems that he took money from all members to pay gharpatti but not paying anying. And when we did enquiry in grampanchayat they said your flat is in the name of Mr. Kambli. No one have any idea Who is that person. Developer is not giving any information what ZHOLE (hindi) they have done. many members complaining about builder that builder replaced their flat w/o any prior information which is illegal. \r\n\r\nAnd grampanchayant said unless & until gharpatti payment done they wont do transfer process. \r\n\r\nKindly advise us as \r\n1. unable to find out who is Mr. Kambli\r\n2. What will be the transfer process of gharpatti which is coming in the name of Mr. Kambali and its requirements for the same. Is Presence of Mr. Kambli is compulsory for transfer process?\r\n3. what is process of transfer electric meter which is in the name of developer. \r\n4. We have paid 2 years gharpatti in last week but receipt in the name of Mr. Kambli.\r\n5. And if grampanchayat is not answering properly where we can complaint?\r\n6. What is the detail process if we have to purchase house / flat in Grampanchayat?\r\n\r\nRgards\r\nNeelam Sawant
Hi Neelam\n\nIt is difficult to ascertain much on this case in the absence of documentation and given the circumstances, we would advise you to approach a competent lawyer in Mumbai with all the details.\n\nPrima facie, if you had entered into a sale agreement for a particular property then the builder cannot change it to something else. But you have spoken about token advance only and not a sale agreement. So why did you not enter into a sale agreement after paying token advance? Did you take a legal opinion before making the purchase? Was the sale deed registered finally in your name for the 3rd floor property?\n\nIf there was a proper sale agreement and if the builder has not fulfilled the obligations mentioned in the sale agreement even after paying full consideration and has cheated then you can approach the consumer courts where the action will be much faster (maybe a year to few years). In the absence of a sale agreement clearly documenting what you are entitled to, if you entered directly into a sale deed, then the final transaction is what will hold good.\n\nThere are too many complexities here and it is best that you consult a local lawyer without any further delay.
Hi,\r\n\r\nThanks for the article. It is a good starters guide for those who are new to real estate transactions.\r\n\r\n Just to clarify myself a few doubts for a flat purchase\r\n\r\n1. Mother deed and EC won’t be there for the flat which i am going to purchase as it is under construction. Did you mean the mother deed /EC of the land on which the building is coming up?\r\n\r\n2. You have mentioned that obtaining EC requires sale deed but is this right? Because ideally one likes to see the EC and then proceed for the purchase of the property?\r\n\r\n3. Suppose if i am interested in a project, I ask the builder the following documents\r\n\r\n1. Building approval plan and commencement certificate. I vet the documents by a property lawyer. He approves.\r\n\r\n2. I put the sale agreement. \r\n\r\n3. Finally, after payment, I register the sale deed and get khata certificate, occupancy certificate.\r\n\r\nam i right?\r\n\r\nLooking forward to your help.\r\n\r\nThank you\r\n\r\nT P Sengottvelavan
Hi Sengottvelavan\n\nHere are the responses to your queries.\n\n1) Yes, mother deed and EC of the land on which the construction is underway.\n2) To apply for the EC, you may need to show the copy of the sale deed to the Sub-Registrar Office. But yes, one needs to be check the EC and get a legal opinion from a competent lawyer before proceeding with the transaction. When you get into a sale agreement or have paid a token advance, the seller is bound to share a copy of his sale deed using which you can apply for the EC. So here, we are not talking about the sale deed that you are going to get into, but rather the previous one.\n3) You are almost right there. \nOnce you have paid a token advance, ask for an entire set of copies of the documents required for legal vetting which may include sale deed, EC, plan approval, commencement certificate, NOC from Pollution Control and any other relevant documents required to trace all the previous transaction history. Your lawyer should be able to guide you with it and most builders will have a standard set available with them. Do not cut corners on taking a legal opinion from a competent lawyer because it can prove to be costly later. Once the lawyer checks and is satisfied with the documents produced, get into a sale agreement. If your lawyer informs that some more documents are required, please do not enter into an agreement till those are procured.\n\nOnce the full payment is done, the registration of sale deed is done which is basically the transfer of title to your name. Based on the sale deed, you can apply for Khata transfer etc. But a building will be eligible for OC and subsequently an A-Khata only if it is built as per plan approvals without any violations. So please check with your builder and make sure to include that clause in your sale agreement.
Hi,\r\n\r\nHave a query regarding a property, hope to get some inputs.\r\nThe property which i am planning to finalize is a BBMP approved A khata, but the trouble is that the builder is not willing to provide OC, instead he says he will provide CC and AKhata for the individual flat which the buyer buys. As per my knowledge the OC is not issued when there is deviation in the approved plan. The builder has not violated the approved no of floors nor as he violated any other construction norms. Only thing he has violated is that the as per the approval he had to start construction after leaving 16ft whereas he has left only 12.5 ft , so the deviation is around 2.5 to 3 ft. \r\n\r\nHe says that most of the builders to it and it is not a big issue and all will be regularized once the Akram Sakram Scheme comes and also he says that once there is Electricity and Water Supply connections given (Which he has already got) , then no one can tell that the property is illegal.\r\n\r\nRequest you to kindly help me whether to go ahead with this property or search for a different one. The property is located at Srirampura, behind Manyata Tech Park Bangalore.\r\n\r\nWarm Regards,m\r\nChandan V Pai
Hi Chandan\n\nThe land may be BBMP approved A-Khata, but the fact that the builder will not be able to provide OC means that he is violating the plan approval. Calculation of violation is a complex task and multiple factors need to be taken into consideration including setback area violation, FAR (floor area ratio) violation, parking etc. So it is not a simple 12.5 feet as against 16 feet. You cannot also predict how the BBMP will eventually deduce this. Given this situation, the property will not get A-Khata and hence will be deemed to be a violating property.\n\nWill it come under Akrama Sakrama (if it ever comes into force)? Well, the scheme is still stuck in the courts and even if approved is applicable only for properties that have completed construction before October 19, 2013. If this is newly constructed, then it is not eligible for it.\n\nElectricity and Water Supply are given independent of OC & Khata, but there is a clear law that these utilities can be disconnected or denied if OC is not available. They have not strictly followed it thus far, but there is no guarantee, things will not change in the future. In a best case scenario, you will end up regularising the property with a penalty (an undetermined one, at this point).\n\nSo basically your actual cost of the property is unknown at this juncture given that you cannot estimate the cost of the penalty or an even stringer punishment.\n\nWe would not recommend buying new properties with violations. Banks don?t fund non A-Khata properties and you will find it difficult to sell later on. Further, if you still want to proceed knowing the risks then insist the builder to put it in the sale agreement that he will get you an A-Khata. If you put that in and then he does not honour it, you can approach the consumer courts for a resolution.
Hi,\r\n\r\nThank you so much for this article and your comment responses. You are literally saving peoples lives.\r\n\r\nI am currently hunting for apartments near whitefield and liked one, named RR constructors. They said they do not have OC or CC, but they will provide something called PC(Possession certificate). The representative told us that, they don’t require OC since the apartment covers only limited area and is considered as a single building. They have 40 flats in that building and G+3 floors.\r\n\r\nI’m assuming they’re complete BS and they’re lying. Please advice.\r\n\r\nRegards,\r\nRam
Hi Ram\n\nA CC (commencement certificate) needs to be obtained from the sanctioning authority by the builder at the beginning of the construction stage after all approvals have been obtained and the foundation laid. This certifies that all requirements are fulfilled as are necessary to commence construction as per the sanctioning authority?s guidelines.\n\nA OC (Occupancy certificate) is to be obtained by the builder from the same sanctioning authority by making an application within 30 days of completion construction as per plan. And the sanctioning authority once again inspects the building for violation, fire safety and other norms and then certifies that it is legal to occupy. In the absence of a OC, it is actually illegal to occupy a building though practically people occupy any kind of building, in India. In the absence of an OC it will become difficult to get a bank loan, hypothecate property or can even cause utilities to be disconnected in the future, as it is illegal as per law. Despite this, the sale process is not barred on such properties because that is not a function of the Municipal authorities but the Dept. of Stamps & Registration. Unfortunate, but sadly that?s how it is.\n\nIf the builder does not have a CC then it means he is not even fulfilling the basic benchmark guidelines of getting the right approvals and starting construction on that basis. And in such a case, an OC is definitely impossible.\n\nSo we wouldn?t recommend the buy though we don?t usually comment on any individual project or builder.
hi,\r\n\r\nPlanning to buy a property at GR Residency , Hongasandra village,garvebhavipalya, Housr Main road, please let me know whether the property is good to buy, any legal problems with this, please assist me\r\n\r\nThanks
Hi Ravi\n\nWe do not comment on individual builders or projects. You should approach a competent lawyer with the legal docs to check the title before you purchase any property. HomeShikari has its own legal vetting service that can provide you assistance, if required.
Dear Sir, \r\n\r\nI am buying a resale flat in Electronics City (Doddathogur Village) which comes under Begur SRO. Seller is having Form 9 and Form 11 issued in 2011 (not computerized). \r\n\r\n1. I am told that we need to show Khata at the time of registration. Since this comes under the gram panchayat, is form 9 and form 11 sufficient?\r\n2. Is the existing hand written form 9 and form 11 sufficient?\r\n\r\nregards,\r\nRanjan
Hi Ranjan,\n\nIf the property falls under Gram Panchayat, yes, Form 9 & Form 11 is sufficient. However, Panchayat are now issuing the same in printed manner and not handwritten as earlier (term coined as ?E Khata?). The Sub Registrar office will ask for a new copy of the Khata and may not accept the handwritten one. This is to determine that the Property is still owned by the seller and Panchayat don?t have any issues on transfer of the property.
Dear sir finalised to take a new constructed flat . Property is HDFC bank approved. I applied in SBI for home loan. SBI searched all paper and they deman a conversion deed, but builder donot have any certificate. Buolder told there is tax paid receipt of previous building on this place , so no need of any proof. But state bank refused to give loan without this. Now HDFC is ready to give loan on this so what should i do?\r\nplease sugest me.
Hi Sanjay\n\nBanks give out loans provided the property title fits their norms and more importantly because you have the financial capacity to repay the loan. Am not sure, what you mean by conversion (land use conversion??) but if SBI is asking for it then it must be important. However, different banks follow different procedures and it is normally seen that SBI and public sector banks are more strict in their norms for title fulfilment as compared to private banks.\n\nWhichever may be the case, please remember that the loan is to be repaid only by you and the builder is not in any way liable to the bank. Even if there is a problem with the title, you will need to continue repaying your loan till it is closed. So please seek a proper independent legal opinion from a competent lawyer before you decide. People cut corners on this aspect and later regret.\n\nIn case, you need assistance, contact us at 080-67684444 or email us at services@homeshikari.com
Iam planning to buy a resale property in Banaswadi. The owner says the land is A khatha and the Buidling is B khatha…Is to ok to buy this property kindly suggest.\r\n\r\nI have 1 more plan to buy a property in TC palya.The builder is not ready to give OC and CC certificate.Kindly suggest
Hi Divya,\n\nThe land is A-Khata means that it probably comes with clean land titles, but building is B-Khata means that the building was not constructed as per the plan approval. In effect, once a property acquires a B-Khata status, then it cannot be converted into A-Khata unless it goes through a Akrama – Sakrama (regularisation) scheme if and when it comes into effect. Even that is allowed only for buildings that have completed construction before a specified date in 2013. If this is a newly constructed building, then it will not be eligible. Banks don’t fund B-Khata properties and only some NBFCs do. So remember that there are hidden costs involved with the property either at the time of regularisation (penalty) or if it remains NOT regularised.\n\nAny builder who is not ready to provide OC and CC certificate is a clear indication that they are not following the building approval plan obtained and that there will be violations with respect to the property. Whether you want to buy such a property or not is upto you. There is an obvious risk involved. You should go ahead with it only if you assess that it will get regularized and with the understanding that there will be a penalty to pay in future (after the builder has walked away from the project).
Hi,\r\n\r\nI am planning to buy a property in JP nagar phase 7 behind Brigade Gardenia. Builder is Gruha Kalyan, who is new in construction line. He is about to register the land in his name. However before registration itself he is asking 30% of total cost to be paid upfront. I am not sure how it works he has given the documents which is in Kannada, i am not able to read that. Although i am taking legal opnion on the documents. However want to know your advice on this. If this is a good decision to buy an apartment with new builder? My worry is that if there is any fraud like on this?\r\n\r\n\r\n\r\nRegards\r\nSami
Hi Sami,\n\nNothing much can be commented on with the limited information on hand. Given the situation, you are doing the right thing by taking a legal opinion. Please ascertain what the legal opinion outcome is and then take a call. If you are required to shell out 30% even before the legal opinion, then it is very risky.
Hello Sir,\r\n\r\nI am planing to buy a flat in T.C. Palya road near to VIBGYOR School, Property name is VM Grandeure Horamove. Behind that property, there is a Horamove lake, I am little bit worried about the Lake bed issue with that even though Property owner is saying that they have taken the opinion from BBMP and constructed as same as instructed. they have all Amenities (Children play area and swimming pool) at lake side after 10-15 meters only flats started. but they don’t have any certificate for that.\r\n\r\nCould you please advise me, do i need to get verify lake bed issue. if yes, please let me know about the authority to check this.
Hi Sandeep,\n\nWe had responded to the same kind of query some time back. Here is our response.\n\nThe way to check lake encroachment is through obtaining a village plan with the original survey nos that shows the extent of the lake and its placement in respect to nearby survey nos. And then check whether your property encroaches any part of the lake survey no. If it seems to be doing so, then file an RTI with the LDA requesting for a clarification on encroachments in that particular lake to make sure your property does not feature. (Flip side you may trigger them off to check on encroachments). While it is the responsibility of the BDA to have checked whether any of their layouts or those approved by them do not encroach into lake areas at the time of formation, it is evident now that they did not do it properly. \n\nSo it is best for you to do your own verification so that you know you are safe in the long run. Land use patterns are also earmarked on the new CDP plan by the BDA / BMRDA and that can also be checked to ensure that your land falls under a permissible use zone, not a green belt, lake or erstwhile forest.
Hello Sir,\r\nI am planning to buy a flat, It is Joint Development Property. The builder’s share is dealt directly by the builder however the flat I am planning to purchase is the owner’s share. The people who showed me the property and having all the ongoing discussions thus far are claiming that they are Property Management Consultants/Promoters and the owners have appointed them to deal with the customers since the owners don’t know much about property dealings. \r\n\r\nThey also said, I need to make all payments like in their name (Property Promoters) and not the owner. They will deal with the owner directly. They have assured that at the time of Sale agreement, registration and all legal formalities the owners will be present and will sign all the relevant documents where required.\r\n\r\nDoes these kind of arrangements between owner and property promoters exist or have you come across any cases like this?\r\nIf yes, what kind of documents or information I need to collect from the property promoters?\r\n\r\nTomorrow in case of any conflicts the owners may just wash their hands saying you didn’t pay us directly, you can talk to the property promoters.\r\n\r\nPlease advice.\r\n\r\nThanks\r\nShankar
Hi Shankar, \n\nYes, unless the owner’s have relegated their powers to the so called promoters through a power of attorney which allows them to collect monies on behalf of the owner, no payment should be made to such promoters nor is there any validity for any agreement you enter into with them. However, there are lot of cases where the owners get into an arrangement with a third party to sell such property because they don?t have the ability to directly sell.\n\nIn all such cases, the antecedents of the arrangement have to be thoroughly checked before any payment is made. Mere verbal assurances would not be sufficient. Please check with a lawyer with all the details before you proceed. If you need help in legal vetting of documents or vetting of sale agreement, please email us at services@homeshikari.com or call us at 080-67684444
Thank you, that is helpful
Hi Shankar,\n\nYes, unless the owner’s have relegated their powers to the so called promoters through a power of attorney which allows them to collect monies on behalf of the owner, no payment should be made to such promoters nor is there any validity for any agreement you enter into with them. However, there are lot of cases where the owners get into an arrangement with a third party to sell such property because they don?t have the ability to directly sell.\n\nIn all such cases, the antecedents of the arrangement have to be thoroughly checked before any payment is made. Mere verbal assurances would not be sufficient. Please check with a lawyer with all the details before you proceed. If you need help, please contact us at services@homeshikari.com or call us at 080-67684444.
Respected All,\r\n\r\nI am plannint to buy housing site or apartment from a private party in mysore road, near bidadi.\r\nkindly help what are all the documents to be verify for purchasing of housing site or apartment.\r\nI am very new to this field. I don’t know anything ??\r\n\r\nkindly guide me.\r\n\r\nwith warm regards,\r\n\r\nmukunda
Hi Mukunda\n\nAn indicative list of documents that need to be checked is given here(support.homeshikari.com/blog/12-important-documents-check-buying-property-2-795/).\n\nHowever, this list is only indicative and the actual documents required for verification of title may vary according to the land jurisdiction, the history of transactions, land use conversion and various other factors. It is best to get a copy of the legal documents and approach a competent lawyer. The lawyer will first check the documents and then tell you what other documents will be required with respect to that specific property for ascertaining if the legal title is clean.\n\nIf you need assistance in legal vetting of documents or vetting of sale agreement, please email us at services@homeshikari.com or call us at 080-67684444
Hi Nimmy,\r\nI am buying an apartment in Bangalore.\r\nHow many years of documents are the minimum required for checking the legality of a property ? \r\nIn my case I have sale deeds from 1963 till date. Like this, minimum of how many years of sale deeds are required to check and buy a property ?\r\nThanks in advance.
Hi Balaji,\n\nNormally, one would check for title from the time of ownership as agricultural land and its subsequent conversion and change in ownership till date. Encumbrances are normally checked for a min of 30 years.\n\nThere is no ceiling on min no of sale deeds required. If there is a doubt on the veracity of the title, then one would insist on going back earlier in time.\n\nIt is best to check with a competent lawyer after showing the copies of documents. There is no standard on how many sale deeds prior have to be checked. Normally the mother deed will/should (a good well drafted one) mention the history of transactions all through.
I have a agriculture land purchased around 20 years ago.This is registered land at Sub registrar office. In EC it is showing the names of the person who sold it tome. But when checked in MRO office Adangal it is not showing my name nor the person who sole me. Now the site is more than 15 years registered to me, what are the documents should be available with me to legally have no issues.\r\n\r\nLook like govt proposed some road widening and some land of me will be taken by govt. But since in Adangal my name is not there the reimbursement given by government, how it will come to me? Please suggest
Hi Prakash,\n\nNormally after a sale deed is registered in favour of a new purchaser, the EC should reflect the transaction and should show your name as well. If it is not showing up, that is certainly a matter of concern.\n\n1) Check where the registration was concluded (in which SRO). Sometimes the EC will reflect up to the previous transaction (i.e., previous owner) and not show up the new owner. In which case, you need to submit the copy of the sale deed and request for the rectification to be done.\n2) Sale deed, mother deed, EC and various other documents would be required to establish title over a property. However, since this pertains to agricultural land and was done 20 years back, it is advisable and in your best interests to consult a competent lawyer to handle this case for you.\n3) Even if there is an acquisition, unless the papers are all in place and reflect your name, compensation would not be paid. Hence all the more reason that you should get it done in quick time.\n\nIf you need assistance, please email us at services@homeshikari.com or call us at 080-67684444
I am planning to buy a flat on the Sai Baba Temple Road, Kundanahalli Gate. I have given the booking amount to the builder however not yet entered into an sale agreement. Is it advisable to ask the builder for the prescribed doucments that was mentioned in your site or I will sought for the documents after entering into the agreement. \r\n\r\nAlso I am very much confused about the difference betwen the Sale Agreement and Sale Deed. Please help
Hi Saroj\n\nIf you have already paid the booking amount then first ask for a copy of the legal documents and get a proper legal title checked from a competent lawyer. If the legal title is not good, then what is the point of going for a sale agreement. If the advance amount paid is significant then it is advisable to enter into a sale agreement before the next steps. \n\nA good lawyer should be able to tell you what more is required to satisfy good title after seeing the initial set of documents. Our list is only indicative and the comprehensive list could vary depending on the past history, land conversion, movement from one jurisdiction to another (village panchayat to BDA or BBMP) in the past etc. So you should be asking the lawyer to just hand over the entire set of documents for a legal title check.\n\nDifference between sale agreement & sale deed:\n\nA sale agreement is an agreement to sell (a contract) entered into between two parties, in this case the builder and the buyer. This is entered into after you have paid an advance and it sets a time limit and certain conditions to completing the sale. While the sale deed is the actual registration of sale done at the Sub-Registrar?s office and it is a transfer of title to the buyer on full payment and fulfilling the conditions of the sale agreement by both parties.
Hi, \r\nI am looking at a 2bhk at bannerghatta road which is by prestige group and is open for pre-booking. I went through this list but it is i think more applicable for house. Can you please guide me for a list for booking an apartment in pre booking scheme. \r\n\r\nThanks\r\nAsheem
Hi Asheem,\nThe list is applicable to anything that is build on a piece of land and we reiterate that the list is not comprehensive and will vary based on the past history of sale transactions, the survey numbers, the jurisdiction under which the property comes under and various other factors. The list is only a broad guide. So in every such instance it is best to consult with a competent lawyer and get a legal opinion.\n\nIt is never a good idea to go by the legal opinion of the builder (given by their lawyer) or assume that everything is fine just because banks are providing loans against this project. Banks that are funding only check the title of the land and the credentials of the builder before approving it for a loan.\n\nAll pre-booking schemes mean that a formal building plan approval is not still obtained but may have been applied for. So the building approvals are still not in place and you are pre-booking it under a early bird scheme. Such schemes carry an inherent risk that the sought approval may not come through though. And hence savvy investors take shelter under contractual clauses that if the approval does not come through, the money will be refunded. You will have to negotiate that with the builder.
HI, \r\n\r\nI am planning to buy a 2BHK in KR Puram area (locality named Alpha Garden), however their are few under constructed apartments by different individual builders. They are saying clearly that the property is BBMP approved – A Khata – approved by all nationalized banks and the possession of the flat will be in 2 months. However they will not be able to provide either Completion Certificate and Occupancy Certificate nor they will either mention the same on the agreement.\r\nAnd verbally saying that for occupancy certificate you might need to pay a penalty of Rs 100 per square feet. \r\n\r\nWe have also checked with couple of residents in the same locality and apartments. Neither of them have the CC or OC but still staying from 6-8 months. \r\n\r\nKindly suggest ? shall we go with this type of property or not ? As the similar nearby property who is fulfilling all the 12 criteria mentioned in your website are charging 15-20 lacks extra as overall cost. \r\n\r\nLooking forward to hear from your end soon. \r\n\r\nMany thanks in advance\r\n\r\nRegards\r\nNavdeep Singh Sethi
Hi Navdeep\n\nThe land may be A-Khata and the building approval may be obtained from the BBMP but that would not qualify for becoming a A-Khata property after construction if there is a violation. The fact that a completion certificate and occupancy certificate will not be possible is a clear indication of violation.\n\nWhat is the extent of violation and whether such violation can be condoned through a penalty via Akrama Sakrama is suspect, even if the scheme comes into force after court approval. There is a cut off period for the scheme and apartments / houses constructed after that period would not qualify under the scheme.\n\nSo in effect you will be left with a property that has violations and will not get the A-Khata. The problem of bank funding and loan ineligibility will come only when you want to sell the property since then you won?t have the A-Khata. Verbal promises mean nothing and you are better off not trusting such claims.\n\nSuch residents who have bought are taking the risk and if there is a penalty, can you ascertain now what the damage would be or if there is serious violation, it could even mean part demolition. Are you ready for that?\n\nA clean property will ensure that you don?t have to worry all your life. There is a premium attached for such a property because they are following the plan to the tee and do not violate. The math is simple, I get approval for 3 floors and build 4 floors plus a penthouse. Then am able to squeeze in more into the same land dimensions than would be possible if I don?t violate. So the cost is less and the risk is more.
Hello sir , \r\n We are planning to buy apartment near lb shastry nagar,bangalore . Near by a lake is there, now a days we have a problem regarding this lake problems in bangalore. How to know the dimensions of the lake area. Present so many aprtments r there. How to find out about this.\r\n\r\n\r\nThankful santi
Hi Santi,\n\nThere are 2 aspects to this. A lawyer (even the most reputed one) checks the authenticity of title as against the papers you submit. A lawyer gives his opinion based on the submitted papers and has practically no way to check its authenticity (fake / forged) etc. because he is not reviewing the originals. So opinions always carry a caveat. Next, things like lake encroachment will not appear on paper but may happen in practicality which one needs to be cautious about.\n\nThe way to check that is through obtaining a village plan with the original survey nos that shows the extent of the lake and its placement in respect to nearby survey nos. And then check whether your property encroaches any part of the lake survey no. If it seems to be doing so, then file an RTI with the LDA requesting for a clarification on encroachments in that particular lake to make sure your property does not feature. (Flip side you may trigger them off to check on encroachments). While it is the responsibility of the BDA to have checked whether any of their layouts or those approved by them do not encroach into lake areas at the time of formation, it is evident now that they did not do it properly.\n\nSo it is best for you to do your own verification so that you know you are safe in the long run. Land use patterns are also earmarked on the new CDP plan by the BDA / BMRDA and that can also be checked to ensure that your land falls under a permissible use zone, not a green belt, lake or erstwhile forest.\n\nIf you need help in evaluating your property,please email us at services@homeshikari.com or call us at 080-67684444
Sir,\r\nI have given the photocopies of sale deed, a khata, tax receipts, mother deed,enncumbrance certificate of my house property to brochure to sell my house in bangalore. Now iam worrying why should i give all these docs, i should have given only the photocopy of sale deed. Please guide me if i did a wrong by giving that many docs to brochure.
Hi Sree\n\nThe usual practice is to only share a copy of the sale deed before entering into a sale agreement and sharing copies of all documents required to legally verify and satisfy the buyer once the sale agreement is entered into. Since you have only shared copies, we don?t think it will pose a problem unless you feel threatened by the prospective buyer (that he might misuse it). Henceforth, when giving copies please do a watermark (for sale purpose) on the copies and give the proper copies only after a sale agreement and if the bank needs it for processing a loan. Now that you have given it, there is nothing much you can do. But there is nothing to worry as long as the originals are safely with you.
Hi, \r\nI am planning to purchase a 2BHK flat in Banashankari area. The land area is below 2000 Sq. ft. I checked the building approved plan, it is approved for G+2 floors and also I see that there are totally 4 kitchens in the plan. However, the builder has constructed 2 2BHKs on each floor and also 2 more houses on 3rd Floor. He says that as the plan is sanctioned for G+2 floors it won’t be any problem to purchase a flat on 2nd floor. Please advise the legal consequences and your opinion on buying the flat on 2nd floor.
Hi,\r\n\r\nI am planning to buy a Individual G+3 house in Bangalore BTM,Please let me know the documents to be verified before buying house,Need to know any problem if i buy a B khata property, Please tell me the difference Between A and B kahata
Hi Vinodh,\n\nYou can find a general list of docs that are required to be verified before buying property here.\nhttp://support.homeshikari.com/blog/12-important-documents-check-buying-property-2-795/\nHowever this list is not comprehensive and the documentary requirements may vary based on jurisdiction, the history of transactions, the survey numbers and the city development plan itself. So it is best to get the papers vetted by a competent lawyer who will be able to ascertain what is required to ensure clean title after you submit the first set of documents.\n\nDifference between A-khata and B-khata\n\nThe A Khata is a revenue record maintained by the respective revenue authority under whose jurisdiction your property falls and acts as an ancillary document for property title. It is based on this that the revenue authority collects taxes. However, building violations and construction without proper approvals have been rampant in places like Bangalore for the past few decades. Hence the authorities came up with the B-khata which is not a Khata, but just an entry into the B-register to enable continuation of collection of taxes. Collection of taxes does not mean that your property is completely safe. In the future, building violations could attract penalties and in some extreme cases even demolition.\n\nTo resolve this rampant problem, the government came up with a proposal to regularise such violations upto a certain limit upon payment of penalties, for just one time. However, though approved by the government even that proposal is stuck in the courts. So if that ever comes into force, the government may provide a one time pardon and allow such violating buildings to exist on payment of penalties.\n\nSo if you buy a B-khata property you will have to wait till such regularisation is implemented and then only your property can be claimed to be completely clean. Most banks don?t fund B-khata properties and that becomes a problem if you want to sell because most buyers may want to take a bank loan.\n\nTherefore, take a cautious call on your investment based on your need. Under all circumstances it is best to take a legal opinion from a competent lawyer. If you need assistance in legal vetting of documents or vetting of sale agreement, please email us at services@homeshikari.com or call us at 080-67684444
Hi sir,\r\nI am planning to buy a flat in banashankari area. The land area is below 2000 sft. 2 2bhk have been constructed on each floor. Totally 4 floors are constructed (excluding parking area – ground floor).\r\n\r\nI checked bbmp approved plan and it shows totally 4 flats approved on ground + 2 floors. I checked with builder, he says it won’t be a problem. Please advise is it ok to buy a flat on 2nd floor.
Hi Ramesh\n\nWe have advised on this forum several times that any deviation from plan is a violation and the entire building will not get an occupancy certificate or the A-Khata (doesn?t matter if the land was A-Khata). For violations, the only chance to regularise will be applicable under Akrama Sakrama, if and when it is passed by the court and is finally approved. However, even there new buildings will not be applicable. And if the violation exceeds 50% for both FAR (floor area ratio) and the setbacks put together, then even a penalty will not be applicable and it will be a case for demolition.\n\nHow the authorities measure and how the scheme will be implemented is only speculation and anyone buying such property is taking a huge risk. So just because you bought on a floor that is approved does not mean no risk to your property.\n\nPlease consult a competent lawyer with all the documents before you take a decision.
Is Occupancy Certificate required for 30×40, G+3 Floor house or a Completion Certificate will do while purchasing the newly built house. I also found that BBMP Approved Building plan has only G+2 Floor will this be a deviation can a valuator come up with % deviation.
Hi Kumar\n\nA building approval is sanctioned by the authorities based on the plan submitted by the builder / architect. Further such approval will be subject to the plan being compliant with the building guidelines for construction. After this the builder or the building owner (self constructed property) is supposed to complete the building strictly as per plan and submit a completion certificate to the authorities. Based on this, the authorities are supposed to inspect and give an occupancy certificate if all guidelines have been adhered to. So it doesn?t matter what size the plot is or the building dimensions, an occupancy certificate is a must especially if you are buying from a builder. A valuator may not be able to completely ascertain the details of violation as the norms adopted by the BBMP or BDA though specified are yet to be tested practically. The violation is also expected to be calculated on the basis of not only the floor area ratio, but also the set back violations. You can consult a lawyer on the legality of the title, but end of the day it is a question of the extent of violation and whether you will be able to get away with a penalty in future or would it pose a serious risk to your asset. We would advise you against such an investment.
Hi, I only trying to buy a Villa in Sarjapur road, the sales person says buying a row house is better in the long run because if there are space between two houses the inner roads within the community will be registered with the local authority and they can use it for genral public use, but in a row house concept where the side walls are common the inner roads are not registered with the local authorities hence it will be a private use only for the community people..\r\nalso I was asking was the documentation they said they can give us a legal opinion (dont know what this is) not the docs without the booking amount, they also said they all all docs in place and except the khata is yet to be transferred.. my dilema is it a safe bet to go ahead with the booking amount because I will miss the pre-launchh offer
Hi Rajan\n\nIt is a big farce. If a property is approved by the BDA or BMRDA as the case may be, such approval is subject to provision of internal roads, green spaces and amenities as per the government guidelines. When private layouts do it as per the approval and continue to keep it private (as long as it does not obstruct anyone?s right to access a nearby property or village) it means that the maintenance of such roads will continue to be done privately (by the association) whereas if public access is given then the BDA or BMRDA is bound to maintain it. In any case, all private layouts which are formed with BDA / BMRDA approvals relinquish their rights on the common internal roads to the authorities.\n\nRow houses also have a road in front or the back of the house, so how is it different from a villa which might actually not have a road between 2 houses but only a compound wall or a picket fence?\n\nThe key difference between a villa and a row house is that in all row houses, you only get the undivided share of land just like apartments whereas in some villas you may get to register that plot of land in your name (get a separate khata with individual ownership of your villa). Again this is not a norm and it depends on builder to builder and the way they implement it.
Hi, I am planning to buy a home for which the previous owner is paying property tax. The receipts are all available, but there is a name confusion. When the owner bought the house, sale deed has name as X. Property tax also has name as X. After that name X has been changed to Y and again from Y to Z. The current name of the owner is Z. The latest document available is that Z has a release deed signed from his mother and siblings after his father’s death. He has the following document for name change – Tamil nadu Government Gazette Published by Authority Part IV – Section 4 – Advertisements by priviate individuals and private institution\r\nMy concern is that after buying the home, and when I need to change property tax/EB tax to my name, will this proof be sufficient? Because there are different names in sale deed, release deed, property tax documents. Will this cause any confusion? is any document required to be collected from owner?\r\nThanks in advance.
Hi KCM,\n\nWhile a name change through a gazette notification is a valid document, there is no reason to still continue to have different documents in different names. It is bound to cause confusion. The sale deed was registered long back when the name was X and hence that cannot be changed. But things like property tax, patta and release deeds which are current documents need to carry the current name Z to be valid. So please request the seller to have them changed before you buy it. Additionally in all such matters to ensure that you are not being cheated or misled by a fake document, please have all the documents vetted by a competent lawyer. The entire purchase could go wrong if the name change was latter found to be fake. So be cautious though it is not abnormal for people to change names for various reasons.
Dear Sir,\r\n\r\nPlease clarify below:\r\n1. Difference between General POA and Special POA. Once POA is given is the actual owner(seller) required at stage of signing of an agreement or registering the propery(purchase)?\r\n2. If the property is being purchased jointly should the contribution from both the people be equal or can it be different? If it is different should the ratio/proportion be documented? Can both of them apply for loan on this property at time of purchase independently?\r\n\r\nRegards\r\nPraveen
Hi Praveen\n\n1) A General POA gives the holder all rights to act on behalf of the giver on any matter concerning the giver without any conditions. It is very broad and is generally not advisable because it is prone to misuse. Remember, every act of the holder is akin to an act of the giver himself. Whereas, a specific power of attorney gives specific rights on specific matters only. Let?s take one simple example, if you want someone to manage your property rentals, then you would want to give a specific POA to manage it rather than a general POA that also gives the right to the holder to sell your property as well. A specific POA is limited to certain matters as defined in the POA and comes with limitations. That?s the basic difference.\n\nThe seller need not be present if a valid POA is given and satisfies all the conditions as laid down by the respective registration office of the state in which the property registration is happening. For NRI?s giving POA, there are some more things to be followed like adjudicating the POA through payment of stamp duty. But yes, a registration can be done without physical presence of the owner, through the POA holder.\n\n2) It is not necessary that the proportion of contribution be equal if the property is being registered as a joint ownership. For ex. when a husband and wife jointly register a property, the money may have come only from the husband or is some cases only from the wife. The individual contribution is not material to joint ownership. However, if you want to maintain proportional ownership based on contribution then you will need to get into a separate contract for that. Joint ownership of property when registered gives equal rights to all the owners.\n\nBoth the buyers can jointly apply for a loan but it won?t be possible to apply for it individually. The registered sale deed is deposited with the bank once it is registered (if you have a loan) and it cannot be split between two independent loans.
Hello, I am planning to buy a flat, and shortlisted a property in Basapura, Bangalore. Though Bulider is telling they have all the approvals and will provide OC & CC as well. But didn’t ready to produce documents until I pay a toker money to book a flat. Please advise what can be done here, what all documents I can ask before paying token amount ?
Hi Manish,\nIt is a common practice for builders not to share copies of legal documents until a token advance is paid. So if you are fairly satisfied by the builder?s reputation and his assurances, then you pay a token advance and collect the papers for legal vetting. In the course of legal check, one of the things that will be checked will be the building approvals and commencement certificate. However, OC (occupancy certificate) is given only after the project is completed and there are several instances where builders mention that OC will be given verbally and then do not provide it. So if the builder is agreeing to give OC then ensure it is mentioned in the sale agreement you will enter into so that if it is not being provided you can fight back and even file a consumer case.\n\nDocuments for legal vetting will vary from building to building and plot to plot, so what is required and sufficient will be known only after scrutiny of the first set of documents that are given to a competent lawyer. Our website has a standard list of docs that you should look out for, (12 Important Documents To Check Before Buying A New Property) but it is not comprehensive and you should go by what your lawyer says.\n\n If you need assistance in legal vetting of documents or vetting of sale agreement, please email us at services@homeshikari.com or call us at 080-67684444.
I have purchased a flat and is ready for possession now, It is constructed by L&T, under olympia 753 flat in one compound. So far only sale and construction agreement given to me as document. Can you please guide what are all the other documents to take from builder before accepting handover
Hi Sundarsanam,\n\nThe information you have provided is too general and vague to be able to help us guide you. It is best that you check with a competent lawyer after showing the sale and construction agreement you have entered into. Which is why we recommend going for a legal opinion even before deciding on the property and getting into the sale agreement. If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
Hi Sudarsanam, \nPlease ask Seller to provide all property related documents and get the same checked by a competent Lawyer to understand if there is any thing missing and ask for those. As already you are done with Sale and construction agreement, much cannot be done (if documents are not in place/agreement is favouring the seller), but collect the documents for your future reference.
Will a Government / private bank pre-approved apartments need legal checks again?\r\nWill the bank recheck the legal plan and then release the loan , i.e will they do legal checks again to confirm if all is well in that apartment?
Hi Sidharth,\n\nWhen banks promote properties which are pre-approved for loans, it is important to look at what stage of construction it is in. Most probably it would have been just launched, rather than completed.\n\nBanks pre-approve home loans for specific projects based on a due diligence of title, encumbrances and approvals. However, whether the building was completed as per approved plan or not, is something that the bank would not get into. Once your loan is sanctioned, there is very little checking done at the time of disbursements and as long as you are approving it, the bank will have no problem releasing funds.\n\nIf you find a problem midway and decide to stop disbursements temporarily or otherwise, the bank will not intervene and the loan in your liability and you have to pay the EMI, no matter what. So ensuring you have a tight sale agreement which is not one-sided (in builder?s favour) is important because whether you want to take the case with the bank or a consumer court, it will depend on what you have signed. So taking an unbiased opinion from a competent lawyer is most important even if the project is pre-approved by any bank.\n\nIf you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
the property is currently in joint names. \r\nwhat is the best way for one of the owners to release ownership of the property?\r\nwhat are the costs involved in doing this and what documents are needed?\r\ndoes the person releasing thir ownership have to appear in person for this?\r\nthank you in advance.
Hi Bharath,\n\nIf a property has joint ownership and the best way for one of the owners to release ownership is to do it through a relinquishment or release deed. That way, the remaining owner will have complete control over the property.\n\nThe other way would be to give a specific POA (power of attorney) to act on behalf of one owner by the other owner. This will enable the power holder to do whatever acts are specified and allowed as per the specific POA.\n\nIt cannot be commented on whether a physical presence is required or not unless we know all the details of the specific case. It is best to consult a competent lawyer to get this done. If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
dear sir \r\ni am very much tensed .. pls solve my query..\r\ni am going to buy one farm land which is near by chandigarh ..but how can i check is this land is genuine or its not under forest reserve…kindly reply
Hi Sushil,\nIt is best to get it checked by a good local lawyer to ensure that you are not buying land that is illegal. Normally, land use is demarcated in development plans and this should be possible to ascertain in the Chandigarh development plan or the applicable local authority.
Hello Sir,\r\nI have done a sale agreement for buying a flat in a new apartment which will be finished on next 2 months.\r\nI have applied loan & it is sanctioned by a nationalized bank.\r\nIf loan is sanctioned then is it require to check the property by a lawyer, as I think while giving loan bank have to do all the verification & if there is any dispute \r\nbank will not sanction loan.\r\nPlease reply.\r\n\r\nThanks
Hi Debasish,\n\nEven if the loan is sanctioned by a nationalised bank, taking a proper legal opinion from a competent lawyer is necessary. Banks look at the land title and the building approvals at the time of giving a sanction. Even there, different banks apply different norms and some may be stringent while some very lax. End of the day, they evaluate your ability to repay the loan and that is what matters to them.\n\nIn 2 months time after the project is completed, if you find that the building has a major violation and hence cannot qualify for an OC then will the bank take responsibility? Your lawyer is the one who should be checking the title, approvals sought, the history of transactions and the title ancestry before giving you an opinion. We have come across scores of cases where a property with improper title or with lack of approvals or perhaps rampant violations post construction which have got funded by a home loan. So a bank loan is no guarantee for an all clear.\n\nYour bank will also not check whether your legal agreements with the builder are protecting your interests. Tomorrow, if there is a dispute you can?t even go to a consumer forum if your sale agreement was not tight enough.\n\nOur advice is always take a legal opinion from an unbiased third party. Do not accept a legal opinion from your builder?s lawyer. That is not bound to be unbiased. If you need assistance on this front, you can contact us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
I had a site approved by biapa in bengaluru. I had got it transferred in my name and have been paying property taxes and it is up to date. Now some is telling to get e katha. Now is it required if so why.\r\nraghu
Hi Raghu,\n\nKhata is a revenue record that is required for payment of taxes to the local municipal authority. First check what you have with you and see if the Khata is in your name and that the property taxes are being paid on your account and not the previous owner. BIAAPA is the authority to provide sanction for layouts, buildings to be constructed in the airport zone. However it does not collect taxes and this is done by the Local Panchayat / Municipal authority. For properties falling beyond the BBMP / BDA zone in the village panchayat zone, it has been advised to get e-khata because the records are all computerised. There have been numerous cases of fraudulent or fake khata in these zones and hence only e-khata is a valid document. In the event that you want to sell your property, even then e-khata will be required. So it is advisable to get it done now than later.\nIf you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
I am planning to buy a plot from a private party who has in turn bought it from a builder. The private party and the builder both specify that the land is biappa approved ,but my lawyer says that there are no documents supporting the builders argument. I am confused, as the land is registered in the private party s name. How can a land be registered without the biappa approval? And what are the risks involved if I purchase that land. If any claim is filed on that land will it be filed on me or will the builder be responsible? And the builder is also specifying that since his plots are outside the jurisdiction of Bangalore city , it does not have any khatha and comes under panchayat khatha. Please advise as to what documents are required for going ahead with this purchase.
Hi Niyati\n\nIt is important to see under what jurisdiction the plot lies in and whether it has the necessary approvals. If the plot is in Devanahalli or in the close proximity of the Bengaluru International Airport then it will come under the jurisdiction of the BIAAPA. If there are no documents to show that it is BIAAPA approved, then it probably is not. Since it is land which probably used to come under the Gram Panchayat previously it could have got registered for a sale with the connivance of local authorities. It is absolutely risky and the plot could be deemed illegal. Please check if this layout falls under the BIAAPA approved layouts. While the plot may be outside the jurisdiction of BBMP or BDA, there are other jurisdictions it would fall under. For ex. there is the BMRDA that comes outside the BDA designated area and there is the BIAAPA that covers the area around the international airport in North Bangalore. Every plot needs to have a Khata. In fact, the ones that fall under panchayat should have an e-khata. If your lawyer has advised you against it, then proceed no further. However, if you need a second opinion then you can probably use our legal services to verify whether it is safe to buy.
I am planning to buy a flat which is in ground floor but is approved for commercial. there is no flat number associated with it. But the owner is saying , he is paying residential tax, everything related to residential. since there is no flat number associated with it, we can not get a loan from Banks. is it good to buy the flat or not, please advise. He is having clear title, and all other documents. what is the risk of buying this flat?
Hi Manikandan\n\nIf he has got a commercial approval, why is he paying residential taxes? If he has changed his intent and the plan to residential then the authorities need to be intimated of the change and the new plan should have been approved. I would advise that you get the title documents checked through a qualified lawyer to ensure that title is good. Prima facie, there seems to be a change of plan and any change from the approved plan is seen as a deviation. Banks are refusing to fund not due to the non availability of flat number, but because the use has changed from the approved plan. We would term this as risky unless the owner produces documentation to prove it is safe. If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
HI\r\n\r\nWe zeroed in on a project in madivala, bangalore. Everything is fine except that the builder constructed two additional houses on the top floor which is not there in the plan approval. I talked with other apartment owners what they said is that it won’t create a problem to us as we r not getting that two home, please give me ur opinion.\r\n\r\nThanks\r\nNisha
Hi Nisha\n\nThe plan approval is for the entire building and not just your apartment. So if the two extra floors that have been constructed amount to more than 50% deviation, it may attract demolition. It is naive to think that demolition of 2 upper floors would not affect your apartment at all. If you are lucky and the deviation is less than 50%, then you will still have to shell out penalty charges according to the Akrama Sakrama scheme. The scheme is still stuck in the court and who is going to bear the penalty, even if the scheme is approved. Doesn’t your cost of the apartment go up if the penalty charges are to be paid. The charges will be levied for the building, not those 2 apartments only and what if the builder or those 2 home owners refuse to pay the penalty. Won’t your flat be also affected? While it is best to check with a lawyer and get a legal opinion, a lawyer probably won’t be able to ascertain the extent of deviation. We would advise you against going for it.
Hi I am planning to buy Gurgaon housing board 1 bhk flat. This flat is on power of attorney .The allotment of the flat is not done yet .Dealer is promising that we can get it register on our name as soon as possession will be granted ,which will take about 6 months. So i want to know is it safe to buy this property as its on poa.\r\nthanks \r\nriya
Hi Riya,\nNot advisable to do it on a POA before the flat is alloted. Allotment is done to the alottee and the registry will only be given to that person. Normally housing board flats have a 10-year lock-in period in which you cannot sell, however people buy it through a sale deed and use the POA to get it registered and transferred in their names after the lock-in period is over. But it is risky and we would not advise that. It is also best that you consult a good lawyer locally with all the documents to understand the terms and conditions of the allotment and transfer and whether it is OK to purchase in this manner. Further, if the allotment is meant for people from BPL (below poverty line) or reserved communities, then the allotment may not be transferable.
Hello,\r\nI am planning to buy a flat in an already constructed apartment. Very new to the property market. The owner lives overseas and has provided a power of attorney to his relative. Could you please tell me if that is good enough for us to deal with and what are the cases in which we would need the actual owner to be present? \r\n\r\nAlso, in such resale cases:\r\n1. Is the list of above 12 documents enough to be verified, or are there additional documents we should be asking for?\r\n2. Will a full verification from a good lawyer be sufficient?\r\n3. Apart from the actual sale price, what additional costs are associated with a resale?\r\n\r\nThanks!
Hi Neelam,\n\nA power of attorney to sell on behalf of a NRI owner is valid provided it was adjudicated through payment of stamp duty with the respective Registrar Office (Inspector General of Stamps & Registration). If the POA was given in a foreign country then the POA should additionally have been notarized there, followed by an endorsement with the Indian Embassy in that country. Else the POA is invalid for registration. If the POA is valid, then the POA holder is sufficient to be present.\n\n1) The 12 documents you are referring to are only indicative. Depending on the background and history of the transactions, the previous land use, its conversion, move from one jurisdictional authority to another (gram panchayat to BBMP etc.) various documents may be required to be verified. Basically you may need more documentation to be submitted for verifying one particular aspect whereas some other property may not require so. So the best person to consult in such a case is a qualified and reputed lawyer so that you are being advised correctly.\n\n2) Yes, a full verification of legal title from a good lawyer should be able to check and ascertain proper title. However, lawyers come in all shapes and sizes (meaning you can get a legal opinion for as less as Rs.3k to 5k to some costing more than 50k-1 lakh with reputed ones). Sometimes what is checked is a paper trail and if everything is right, a lawyer may give a clean chit. However a good lawyer will also check for the authenticity of the papers presented (there are enough cases of forgery also happening). It is important for you to understand that your lawyer should be such that you should be able to go back even if you have an unexpected problem after 5 years or 10 years. Of course, no lawyer can help if there is an acquisition plan by a government authority for common amenities in the future. That is something that is not predictable, but as of how things stand today, a good lawyer should be able to advise you on the pros and cons of a property buy clearly. That should be your guiding factor for decision making.\n\n3) Apart from the actual sale price, the following will be the extras:\n- Your payout for a legal opinion\n- The stamp duty you pay for registration of the sale deed at the sub-registrar’s office.\n- The fees or expenses you will incur to change the khata, tax payment, utility bills to your name, as the fresh owner. It is advisable to do this as soon as your register the property, rather than delay it because we have seen cases where something was missing and a decade later, the seller is not traceable and you have an unresolved problem.\n\nHomeShikari has some of the best legal experts helping us out.If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444.
Sir, I am buying a property in Singasandra, which has A Khatha, OC, EC, Tax Paid receipt, Sale deed all fine. it is SBI approved also. While doing the legal check they said that Mother Deed is with Karnataka Housing Corp because the land is pledged to the them. What does this mean? Want to know if this is an issue. Can I go ahead and purchase this property? What is the risk?
Hi Sir/Mam,\n\nIf the property was sold through a government housing scheme like the Karnataka Housing Board or the Rajiv Gandhi Housing Corporation schemes, then there will be restrictions or conditions attached to it. In some of the schemes, the right of ownership is passed to the beneficiary only after 15 years and until then they only enjoy possession rights. This looks to be a property that was sponsored by a govt. scheme. In some schemes the site cannot be transferred or pledged for a period of 20 years or they could even be restrictions on who you sell it to (if it is a project for the under-privileged) or it could be a lease hold property. \n\nBest to check on the conditions of the scheme and ensure that you have free title when you purchase. If you buy a property which has conditions attached to it, and such conditions are violated then you have no remedy for it because you have knowingly violated it. Hence it is better to exercise caution at the time of purchase. Please check with a competent lawyer before you proceed. If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
Hello sir,\r\n\r\nI am planning to buy a plot of around 200-250 sq yards in either vijayawada or rajahmundry in andhra pradesh by summing up the money that i have saved and by taking a personal loan. As I am going to invest all my saved money I am worrying about the problems that may arise out of buying.kindly guide me purchase the plot, whether i can ask all the deeds that is mentioned in this site? If need to hire a lawyer, if a local lawyer in that city will be ok? which type of lawyer criminal/civil lawer? how to verify the documents? bear with me, I am a newbie.
Hi Srinivas\n\nAny property investment needs to be proceeded with care and caution. The list of items mentioned on our site / blog are indicative. Further the type of land, the permitted use, the zonal jurisdiction and the history of ownership and past transactions will determine what all documents will be required to check legal title. Since it is in Vijayawada or Rajamundry, you should seeking help from a local lawyer. A lawyer in Bangalore or Hyderabad is not advisable. You need to seek a lawyer who is well versed with property documentation and deals with civil matters. Since AP is undergoing a lot of change with the building of a new capital city and other changes, it is also preferred that you also look into issues of possible acquisition for development purposes like highways, roads, civic amenities before acquiring the plot.