Buying a home in Bangalore can really be a time-consuming process with lots of possible hurdles on the way like title defects, complicated property laws, financing, to name a few. It is always advised to buy your dream home in a very cautious way as it includes investing years of savings. While purchasing the home of your choice, it’s mandatory to check all the legal aspects of the property to be at a safer side.
Team Aspire brings you a comprehensive list of legal checks which will come in handy while buying the home of your dreams in Bangalore and shall help you make a well-informed decision.
For any property, there are two kinds of documents – primary and secondary documents of title. Primary documents of title are the most essential documents related to the property which reflects the ownership history of the property being sold. Whereas, the secondary documents help the buyer in verifying the information mentioned in the primary documents of the title. The secondary documents also help in assessing whether the building is compliant with regulations of various bodies and if it’s built as per the plan sanctioned.
Following is the general list of documents which a homebuyer must assess and verify at the time of buying any property in Bangalore:
I. Primary Document of the Title
Parent Deed or the Mother Deed
This is the Sale deed, Gift deed, Partition deed, Allotment letter or similar, by which the present owner/owners have acquired the title for the property. This document is also referred to as the Mula Pathra and includes the unbroken flow of the title up to the present owner.
Tracing of the title should always begin with the earliest available document, record or order by which a Court or Government or a statutory authority has given the rights to the property to its first owner. Then, documents which identify the subsequent owners of the property through an unbroken sequence of legal acts up to the present owner, i.e. the seller, should be traced.
At times, many of these documents may have been lost over time; in such instances, the buyer should look at the earliest registered document available with the seller and, with the help of a lawyer, trace the title up to the present owner. Since almost all properties in Bangalore have their roots in agriculture, it is possible for the lawyer to establish whether the property has clear titles and can be legally sold by the help of various secondary documents.
II. Secondary Documents of the Title
1. Building Plan Sanction
In case of purchasing apartments or individual houses, you need to have the Building Plan Sanction which would be issued by the BBMP, BDA or the village Panchayat for properties under their respective jurisdictions.
For vacant sites in plotted layouts, you need to check for the Layout Plan Sanction, issued by the plan-sanctioning authority. For builder-developed independent homes, apart from the layout plan sanction, you need to have building plan sanction from the BBMP or village Panchayat, under whose jurisdiction the property falls.
The Khata certificate is issued by the BBMP, the BDA or Village Panchayat in the name of the present owner(s). The Khata is an account of every person who owns a property in the city. Each property will have a Khata. Each Khata has two parts: the Khata certificate and the Khata extract.
- Khata Certificate
A Khata certificate is obtained for the registration of any new property after paying the registration fee. This certificate mentions that a particular property number ‘N’ is held in the name of the person ‘X’. This certificate is required for applying for a water connection, electricity connection, trade license, and building license. The Khata certificate is given by the BBMP only to the owner of the property or to his/her legal heirs and is used for the purpose of paying taxes.
- Khata Extract
A Khata extract is a document issued by the BBMP that states the name of the property owner, details of the property, such as plot size, built-up area, etc. The owner can obtain this document on payment of certain fees along with a requisition letter to the Assistant Revenue Officer at the BBMP’s zonal office for the area where the property falls. Only owners can collect Khata extracts.
The Khata certificate and Khata extract are unofficially together called the ‘A Khata’
3. Encumbrance Certificate
The Encumbrance Certificate (EC) is a record that shows all the registered transactions pertaining to a property in a particular time period. It is issued by the sub-registrar’s office under whose jurisdiction the property falls. ECs are issued via Form 15 or Form 16 (whichever applicable).
While buying the property, you should insist on an EC for a period of at least 30 years.
Though EC is helpful in ensuring a clear and marketable title for the property, it does not provide the complete picture. Certain documents/transactions need not be registered, and these are not shown in the EC. Such documents and transactions include unregistered wills, unregistered power of attorney, unregistered agreement of sale and unregistered mortgages. Apart from these, litigation in courts and tax liabilities are also not shown in ECs. So while buying a property, do not rely solely on ECs for a clear title and look at other secondary documents.
4. Commencement Certificate
The Commencement or clearance certificate (CC) is given by the engineering department of the BBMP for the properties under construction in the city limits. Once the building license is obtained and the foundation and peripheral columns have been constructed, the builder has to apply for the CC. Only after a CC is issued can a builder legally proceed to construct the complete building. Note that BBMP will not issue an OC on completion of the building if the builder had not taken a CC at the beginning. See OC section below.
5. Occupancy Certificate
The Occupancy Certificate (OC) is obtained at the end of the construction and is proof of plan sanction compliance. Once the builder applies for the OC, BBMP is supposed to conduct an inspection to confirm that the construction is compliant with the sanctioned plan.
6. Compounding Fee Receipt
If the construction varies from the sanctioned plan, this is an important receipt which shows that a compounding fee has been paid to the BBMP for regularising any deviation from the sanctioned building plan.
7. Conversion Certificate
This Conversion certificate (popularly known as DC conversion certificate) is issued by the Deputy Commissioner. It certifies that the property has been converted from agricultural land to a residential property.
8. Tax Paid Receipts
These are receipts issued by the BBMP, BDA or village panchayat, recording the payment of taxes for the property. Tax paid receipts have the name of the previous owner(s) which helps in re-verification of the title mentioned in the parent deed.
9. Family Tree
This document shows the genealogical tree in the form of a flow chart, with the names and age of the members of the family of the present and past owners of the property being sold. It also indicates whether the persons mentioned in it are living or dead; it is certified by the Village Accountant or the Revenue Inspector.
10. General Power of Attorney
A general power of attorney (GPA) is a notarized document which empowers another person to act as your legal representative. As a buyer, you need to ensure that the GPA is valid, not revoked and is provided by the person who has the legal right to give the same.
All these documents should be verified to ensure that you invest your hard-earned money wisely. It’s always advised to consult a property advisor or legal personal to help you assist with the process as they have good knowledge of the latest trends and can advise whether your preferred property complies with all the necessary legalities or not.
Aspire Proptech provides end-to-end assistance with home buying which includes a dedicated legal team to ensure that you get only the properties that are legally approved. For any assistance, feel free to comment below or reach out to us via mail at firstname.lastname@example.org and we’d love to help you out.