- Check preceding parental documents of the last 30 years to ascertain the correct flow of title.
- Verify original title deed documents in the name of the present owner
- Check latest land revenue record applicable in your state along with the land area extent to cross verify the mutation made in the revenue records in the name of the present owner of the land.
- Authenticate the copy of the gift deed executed in favour of the local body in case if the layout or scheme land exceeds certain specific areas prescribed by the respective state. Also, check whether the layout of the land is approved.
- Ensure that the land conversion order had been obtained and also check the copy of Field Measurement Book (FMB) sketch of the land.
- Cross-check the genuineness of the present owner’s land revenue records online (if available in that respective state)
- In case if the builder is not the owner, check the development agreement entered into between the builder and the owner and also check whether the owner has granted the power of attorney in favour of the builder or his representative. Ascertain the extent to which the owner has given power to the builder (whether to sell all the developed flats or only specific number of flats). Also ensure that the present owner is alive before registration of the sale deed for the apartment.
- Obtain a certified copy of the latest title deed by which the owner had acquired the title to the property from the records of the concerned sub-registrar office that has jurisdiction over the property to be purchased.
- Get a non-encumbrance certificate (computerised or manual – whichever applicable) for the last 30 years to ascertain the correct title flow and also to ensure that there is no subsisting mortgages or court attachments over the property intended to be purchased. Cross-verify the encumbrance details online
- Check building permits issued for the construction along with a copy of the sanctioned building plan and a seal of the appropriate authority.
- Ensure that the total number of apartments constructed tallies with the number of apartments mentioned in the permit issued for approval. The general thumb rule is that for each apartment, there will be only one kitchen. Count the total number of kitchens shown in the approved building plan and this will reflect the total number of apartments for which permission had been issued for.
- The builder/developer should not retain any Undivided Share of Land (UDS) — unless a flat is allotted to him — nor should he have any terrace rights over the constructed building. Check whether the construction agreement is free from these clauses.
- In most states the sale deed for the new apartment will be registered along with the UDS. In Tamil Nadu and Puducherry, however, only the UDS for the new apartment will be registered. The construction agreement for the new apartment should be duly registered prior to the execution of the sale deed for UDS in Tamil Nadu.
- For societies (mainly in the State of Maharashtra), check the conveyance deed executed in favour of the society/condominium concerned. Also check the occupancy certificate or the allotment/possession letter issued in favour of the member of the society along with the share certificates issued by the society. Also check the membership details in the society.
- In case a loan has been availed from any bank/financial institution (FI) by the builder/developer, ensure that an NOC for the sale of the apartment is obtained from the concerned bank/FI. Ensure that the payment transactions to the builder/developer are routed only through that bank/FI which had granted the loan to the builder/developer.
- Check whether the completion certificate has been issued by the appropriate authorities to the builder/developer stating that the building has been completed as per sanctioned building plan. Verify the receipts for water connection, drainage/sewerage connection, and electricity connection obtained by the builder/developer prior to the registration of the sale deed for the new apartment.
- For projects covering an area of more than 20,000 sq.m., and less than 1, 50, 000 sq.m, and township projects covering more than 50 hectares or built-up area of more than 1, 50, 000 sq.m., check whether the builder/promoter has obtained the prior environmental clearance (Envirnonment Impact Assessment) from the concerned state environment department.
- For the purchase of second hand apartments, apart from the above checklist, obtain the following original documents: property tax receipt, water tax receipt, and the electricity charges receipt issued in the name of the present owner.
The writer is a Chennai-based advocate and author of ‘Property Registration, Land Records and Building Approval Procedures Followed in
Various States in India’
