Buying a property, be it residential or commercial, is one of the most important financial decisions a person takes in his/her entire life. However, people often neglect the importance of the documents involved in the process, and end up investing in the wrong property. We asked builder Nitin Agrawal, MD of Swadesh Builders Bhopal, for his expert advice in this regard.

While the exact laws governing the sale of property might be slightly different in different states, there are a few permissions and documents a builder or promoter must have if they are selling flats. Nitin Agrawal of Swadesh Builders provided us with a concise list of documents that you should check while buying a property from any builder. Take a look:

Title deed: This document tells you whether the seller owns the property, has the right to sell it and the freedom to transfer ownership. Insist on seeing the original, and not a copy of the title deed. It will also tell you whether everything is legal or if there is litigation in progress regarding the property. According to the Swadesh Builders Bhopal MD, every buyer should check the original deed, confirming that the land is in the name of developer, in order to make sure that no one else has right to sell it. It is advisable to get the title reviewed by a lawyer.

Intimation of disapproval (IOD): A set of permissions which must be obtained by a developer at various stages of construction, an IOD keeps trouble out of your property’s way. IOD usually includes approvals and a No Objection Certificate (NOC) from various departments such as the Storm Water and Drain Department, Sewage Departments, Forest Department, Environment Department, Traffic and Coordination Department, Chief Fire Officer, Airport Authority and Pollution Board, among others.

Commencement certificate (CC): This is a document which must be issued by the local authorities and legally allows a builder to start the actual construction work. Builder Nitin Agrawal explains that this is important as any construction without procuring a CC is illegal.

Encumbrance certificate: This document can be obtained from the office of the registration authority (the sub registrar’s office). it informs you whether the property carries any legal or monetary liabilities or has any litigation pending. It can go as far back as 30 years.

Approved layout plans: The layout plans must be approved by the appropriate planning authorities. According to Nitin Agrawal from Swadesh Builders, property buyers need to exercise caution as there have been cases where developers deviated from the approved layouts, by adding extra floors or reducing open areas.

Purchase agreement: This is one of the most important documents involved in any property transaction. You should go through the purchase agreement carefully to make sure it includes everything you were promised. You can only hold a builder or promoter legally accountable for what is in the purchase agreement, not what has been verbally promised to you.

Occupancy certificate (OC): This certificate is issued by the local authorities, and states that the property has been constructed in compliance with the provided permissions. As told by Nitin Agrawal, the developer would have completed all necessary water, sewage and electrical connections at this stage.

We hope this list of important documents, and the reasons why you should pay more attention to them helps you choose the right property.