Documents to Be Submitted By the Builder

When buying property in India from a builder, it is in the interest of the buyer to check mandatory permissions and papers with the Builder/Developer. Below is a checklist of documents to be submitted by the Builder/Promoter/Developer to the buyer during the transaction:

1. Property title: It shows who the true owner of the property is and whether the title is clear and marketable or whether the property is under litigation. It also tells you whether the land is freehold or leasehold. Apart from this, it informs whether the seller has the authority to develop and sell the property and if it is free of encumbrances.
   
   The builder should provide you with copies of the property titles but you should also look at the originals. If it's leasehold, the terms of the lease are important.

2. No Objection Certificate: This certificate informing whether the property is free for sale is obtained from the building Society members if the flat being purchased is a resale flat in a Registered Society. This certificate is important as it helps to identify if the member has any pending dues or disputes with the society and shields you from paying his past liabilities.

3. Letter of Registration: This is an undertaking that the Builder has secured all the required permissions from the concerned authorities to build the property that he is offering for sale.

4. Copy of the Building Plan: This is the building plan that has been approved by the competent authorities like fire brigade, environmentalists' and other such authorities.

5. Building Completion Certificate: This certificate is issued by Municipal Authorities showing whether the building complies with the rules of building height, distance from road, and whether it is built according to approved plans and is ready for habitation.

6. Letter of Possession: It ensures that possession of the said building is being delivered to the purchaser on the effective date specified in the letter.

7. Letter of Purchaser: It ensures that all the due obligations of the buyer have been fulfilled and no other liabilities remain on the buyers' part. It states that the due amount has been received and the deal is complete.

8. Occupation Certificate: This certificate is issued when the building is ready for occupation after water, sewage and electrical connections are complete. An original copy of the Occupation Certificate by the Municipal Corporation of the locality is mandatory. It is vital in the sense that this document confirms the possession to the buyer legally; otherwise a mere handing over of the possession will stand null and void, in case a dispute arises.
   
   
9. Allotment Letter: For a project under construction, these documents are very important as the Allotment Letter contains details regarding the agreed price, payment and construction schedule, house plans, delivery date and builder's liability in case of late completion or problems after possession.
   
   
10. Development Agreement: This document is an agreement between the builder and the landowner and contains details regarding the terms and conditions on which the landowner has permitted development of his property. This document acquires great importance during a transaction for a property under construction.
    
    
11. A Title report: This report contains the history of the title over the last thirty years. It states whether the property is unencumbered and has a clear and marketable title and is free of any litigation issues.
    
    
12. Copy of Insurance Cover if already taken.
    
    
13. Additionally, the purchaser can ask the Builder to furnish the addresses, nature of the organisation / persons to be constituted, to which title is to be passed on in writing. Such organisation may be a Co-operative Society or private limited company etc.

Stamp Duty and Registration:
Besides this, such Builder/Promoter will have to execute an Agreement for Sale with the purchaser, duly stamped and registered under the Indian Registration Act, 1908. The buyer needs to register within a maximum period of 4 months from the date of execution of Sales Agreement at the Sub-registrar Office appointed by the State Government, under the relevant Registration Act.

Contents of the Sale Agreement:
The Agreement must contain the liability of the Promoter/Builder to construct the building according to the plans and specifications approved by the local authority. It should also contain possession date, price to be paid by the purchaser and the intervals at which the installments towards the full payment are to be made specifying the stage of construction, the precise nature of the body to be constituted of the persons who would take the flats, details regarding the common areas and facilities specifying the percentage of undivided interest in the common areas and facilities pertaining to the apartment agreed to be sold, a statement of the use for which the apartment is intended.

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