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Which documents are to be verified before purchase of flat?

The purchaser should check the following the following documents before buying the property.

  1. All Sale /conveyance deeds in respect of the property concerned giving clear flow of title to the property wherein the last transaction is between the developer and the erstwhile owner. All documents must be registered documents, as without registered documents, title in the property does not pass on to the purchaser, under Law.
  2. If the land is not acquired by outright purchase, then registered Joint Venture / Joint Development Agreement between the land owner and the present developer. Registered power of attorney given by the land owner to the developer empowering the developer to develop the property and sell the flats constructed thereon.
  3. All permissions / sanctions obtained by developer which include
  • Non Agricultural (NA) permission of land
  • Approved plan
  • Commencement Certificate and Intimation of Disapproval (CC & IOD)
  • Latest revenue records / property cards mentioning the name of the developer as last owner of the property.
  • If the land is agricultural land, then 7/12 extracts and mutation extracts connected with the property showing the change in holder of the land. Class of holding of land to be Class I land entitling the developer to deal with the property in any manner whatsoever.
  • Occupation Certificate in respect of the building in which the flat is constructed.
  • Latest property tax bill and payment receipt in the name of developer evidencing the municipal records in respect of the property to be in the name of the developer.
  • The project is RERA registered and all details of the project including flow of title, all technical certificates are uploaded by the developer on the respective State RERA website and is complying with the same.

What is encumbrance certificate?

Encumbrance certificate is the certificate issued by a practising advocate and/or by Sub Registrar of Assurances giving the details of charges/discrepancies in the title of the property owned by the developer. The encumbrance certificate should be obtained for a period of 40 years.

What is meant by market value of the property and is stamp duty payable on market value of property or on the consideration stated in the agreement?

Market value of property means the value at which the property is available in the market for sale. The stamp duty payable on the agreement value and market value of the property, whichever is higher.

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Emperium, Corporatedge Service Office, Level-1, Tower-A, Building No. 10, Cyber City, Gurugram.

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