Legal Documents Required To Buy Sell Land And Property
  • By admin
  • / July 4, 2024
  • / Blog

Purchasing a home is one of the most significant milestones that will ever be undertaken in life by a person or a family since it involves the use of large sums of money and depends on the outcome in the years to come.  It translates to a huge amount that, apart from the responsibility of being wealthy; implies future lifestyle liabilities stated in tenancy.  Though this is far from trivial, considering all the circumstances it is paramount that all the papers are in order and all the possibilities of failure and controversy, or monetary losses are eliminated.

Here are the essential documents one should carefully check before selling / buying a property:

Agreement to Sell

The most important part of this document is the mention of “PRICE” that is agreed upon for the transfer of ownership of property. It is a formal legal form that prescribes the terms of transferring ownership rights on a property from the seller to the buyer.  It is the legal document within which the process of establishing the buyer’s ownership right is grounded and, at the least, legalized.  The document must have the following:

  • Name of buyer
  • Name of Seller
  • Survey Numbers
  • Boundaries of Property
  • Dimension of the said property
  • Consideration (Add the agreed sale consideration or the purchase price of the property)


As for the sale deed, the buyer must ensure that the copy that is prepared is true and not a fake copy by looking at every field that has been mentioned in the sale deed.  It is always ideal to get the sale deed drafted by a lawyer since there are always some pitfalls that are likely to occur, which can make the transfer documents of no legal effect or one may encounter legal complications later on.  Ideally, before affixing signatures to it, the buyer should seek the opinion of the legal practitioner on the legal content of the document.

Possession Certificate

It is a legal document that is prepared by the local municipal authority once the construction work of a building is complete or when the building constructed is safe to be occupied. It implies that all the construction has been done in accordance with the building codes and safety norms applicable to that area/state.  This certificate warrants compliance with all norms provided and codes as regards the construction of this building.  Ensure that the certificate produced is valid or, as the case may be, assigned by the appropriate authorities, and connected to the precise asset buyer intend to purchase.

Even certain cases of differences or issues on the certificate could indicate that there could be Serious flaws in the structure or failure to meet the laws which always has legal consequences or implies risk to people living in the building.

Title Search Report for Land and Building

It is particularly helpful while applying for a home loan and if the property was pre-owned. The Report has all the details pertaining to the previous owners, tenants, description of property, etc. It basically entails the history of the property. It is generally prepared by experts in the field like a property lawyer etc.

Sanctioned Construction Plan

Caveat Emptor – Buyer beware. This document ensures that any deviation from the sanctioned plan cannot at a later stage impair the buyer of the property.

The plan is a detailed drawing of the entire project including layout, dimensions and specifications of the unit one is buying. Check that the actual construction matches the approved plan and there are no unauthorized changes or variations. The buyer must cross check whether the property is same to the one shown in the building plan. Variation without authentic authorisation can directly result in penalties and/or legal complications. The best thing to do is to hire a professional architect or engineer to carry out the inspection.

Bhar Mukt Parman – EC

This will ensure that the property is free of any monetary or legal liability that may arise later.

An encumbrance certificate is a document that shows any legal claims, mortgages or liabilities attached to the property. It’s important to make sure the property is free from any encumbrances or legal disputes that can affect the ownership. Review the encumbrance certificate carefully to see if there are any outstanding dues, charges or legal cases against the property. The buyer should get an updated encumbrance certificate from the authorities to make sure there are no hidden encumbrances or legal issues that can affect their ownership or create financial liabilities.

Mutation Certificate

The mutation certificate is an official record that shows the change of ownership of the property in the society’s land revenue records. It is also important to check confirmation that mutation of the virus has been done or completed. Make sure that the actual transfer of the property is done in the name of the owner. In case there is no proper mutation, one may experience challenges in future in their transactions or even litigations concerning the said property. The buyer should ensure that the mutation process is completed. The certificate should reflect the name of the new owner. This document is essential for establishing legal ownership and avoiding potential disputes.

Power of Attorney

If the current seller is not directly involved in the business transaction process, then he or she may have been assigned a legal representative by a General Power of Attorney (GPA). In situation like these it is advised to provide an authentic GPA. It has of course to be registered properly and the agreement’s provisions have to be properly complied with. The next step one should take is to confirm the validity of the GPA. This verification is important to exclude any legal screw-ups and if there are any, they will produce proof to detain them.

Utility Bills

Looking at the recent utility bills like the electrical, water, and gas bills is important in ensuring that no balance has to be paid for by the buyers regarding the property in question. Such costs may include unpaid utility bills which in most cases will be transferred to the buyer. Unpaid utility bills can become the buyer’s responsibility. This occurs after the purchase. The buyer should realize that some specific NOCs can be needed in regard to the property that has been bought and must be secured and must be up-to-date. They can help avoid legal problems or sanctions in the future.

Receipts of Property Tax

This document ensures all the necessary taxes have been paid by the previous owner/occupant, so that you do not have to face the liabilities after the purchase of the property. This establishes that there is no dues on the properties and hence establishing a clear legal status of the same.

Buyer NOC

The buyer might have to obtain different NOCs from competent authorities depending on the location and specificities of each site. These include environmental clearance, fire safety and electricity board approvals. Verify that all necessary NOCs have been obtained and are valid. If one fails to obtain the required NOCs this might lead to legal complications or penalties from the authorities. certificates ensure compliance with various regulations. They can prevent legal issues or penalties in the future.

Bank NOC

Bank NOC is obtained when the property was mortgaged or financed by a bank or financial institution. Bank NOC is signifying that the loan is fully repaid. There are no outstanding dues in the name of the property.

Absolute Sale Deed

The title deed certifies the legal entitlement to the property in regard to ownership at the time of producing the document. The document states a detailed history of the property’s ownership and transfers. Verify that the seller has a clear and marketable title to the property before proceeding with the purchase. Any discrepancies or issues with the title deed could lead to legal disputes. Challenges to ownership rights could arise. The buyer is advised to understand the property’s ownership history and carefully review the title deed. Ensure there are no outstanding claims or disputes that could potentially affect their ownership rights.


To sum up, record keeping occupies a crucial place in any records on the home buying process.  It has its own protective as well as insurance objectives through which the former shields the organization from potential legal risks and the latter – from undesirable monetary effects.  Hence, the homebuyers must undergo certain legal efforts to seek the complexities of the legal documents including the sale deed, completion/ occupancy certificate, building plan and the encumbrance certificate that can legitimise the property and establish the identity of the genuine owner.  Large may be obtained by consulting the legal entities as well as the architects to be in a position to steer through this complex system with ease and confidence.

It is highly recommended for the buyer to seek the assistance of a legal professional. A real estate expert can also help to thoroughly examine all the relevant documents. They identify potential red flags and ensure that the transaction is conducted in a transparent and legally compliant manner.


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