Documents to Check before Buying a Flat from Builder

Documents to Check before Buying a Flat from Builder

Investment in property is extremely capital-intensive and any uncertainties made during the process may be very upsetting for the purchaser. This calls for caution on the part of the buyer when examining the documents of the property. A buyer can ensure that the investments bring a sense of security and peace of mind with proper legal advice, document review and verification of relevant information about the property.

While you are looking for a home, it is important to know the documents necessary to purchase an apartment or flat of a builder. Until all documents to be verified before buying an estate or plot for which you have been granted are presented, no construction will take place even under government housing schemes in India. Documents had to be provided during the building of the house or apartment.

In the acquisition of any property, a series of preliminary checks must be made to avoid the appearance of contingencies that may cause future problems.  To buy your dream home, you must know about the documents to be checked before buying a flat from a builder.  

Are you about to buy a house?

Look at the below things to check before buying a flat in Hyderabad from a builder.

Home Ownership Title

The title deed is the legal way of saying you have the right to own something. In real estate, title deed refers to ownership of the property. You have the right to use the particular property. The ownership title is one of the most important things to check before buying a flat that helps in designating the actual owner.

Commencement Certificate

If you want to buy any ongoing construction property from a builder then commencement certificate is required. This document helps you to check that the construction of the flat has started only after getting approval from the local authorities.

Building Approvals

The document of building approval states that a residential building in which you are planning to purchase a flat has no issues and is approved by the local authorities.

No Objection Certificate

The certificate of No Objection (NOC) states that there are no such discrepancies in the present plan and it can be duly executed. This document helps you as evidence in showing that the building has no objections related to the construction of it.

Encumbrance Certificate

This document helps in ensuring that the property is free from any dispute.  You can also know that there are no loans against the property which you decided to buy.

Learn More About the Importance of Encumbrance Certificate

Occupancy and Possession Certificate

Certificate of Occupancy is one of the documents to be checked before buying a flat from a builder which is issued at the end of the construction by a local government agency. It indicates that the building is in a suitable condition for occupancy. This ensures that the building would suit for occupational purposes and can be owned by people.

Purchase Agreement

This agreement contains all major details of the building construction such as the project specification, payment terms, completion deadlines and type & amount of penalty. It also includes a clause to transfer the common areas to the society. This ensures the flat remains with the original owners and that the developer cannot engage in further construction on this particular place.

These are the basic documents to be checked before buying a flat without which it is not convenient to take another step in the purchase of a home.  In this way, you will have information about the right builder of the property. Since many aspects must be taken into account to ensure that everything goes well, it is advisable to go to specialised professionals who accompany you and advise you during the buying and selling process.

Before signing the deeds, the legal status of the home must be checked. The purchase of a house commits us in the long term in many ways. Some professionals can help you with a fair housing audit.

Before the acquisition of commitments with the seller of the home, it is advisable that the buyer has to check the legal situation of the same. The purchase of the house is one of the most important economic decisions since it compromises your economic position in the long term, and for this reason, it is necessary to have the complete information possible to facilitate the adoption of an accurate decision that allows for optimal planning.

It may be interesting to have the collaboration of a third party (real estate agent) to carry out a real estate legal audit of the home that you want to acquire by carrying the research process before the acquisition of the property by qualified professionals in the sector. In this case, the result of the research activity will be a report that incorporates an analysis that highlights the result of the review.

The prospective acquirer has the right to be informed, and the selling party has an obligation to inform him. If there are charges on the home, it is advisable to meet the seller, before signing and get up to date payment or to deduct the amount pending payment from the sale price.

Things to check before buying a house

Is the seller the owner of the home?

You have to check the Application for a Certification of ownership and charges in the Property Registry and an authorised copy of the Public Deed of acquisition. Are there burdens that tax the home like mortgages, foreclosures, etc.are pending on the property?

Are there receipts for other taxes pending payment?

Request proof of payment of the last four annuities of the Real Estate Tax. Other taxes that may affect the property and those fees that result from the application like garbage collection, the entrance of carriages, etc.

Damage Insurance

If the property is new or under construction, has the developer contracted damage insurance for possible structural defects of the building? Application for the contract policy completed with the document that certifies its entry into force. Certificate issued by the insurance company verifying the construction and validity of the contract or supplement of entry into force of the insurance in which the conditions of the contract are specified. The notarial legitimation of the signature of the document presented to prove the constitution and validity of the insurance are required.

Does the house have a certificate of occupancy?

If the house must have an occupancy certificate, the home should meet the requirements of the plans that he has mentioned in documents.  If the house is affected by any planning instrument that disadvantages or have been declared in ruins.


All the services of the dwelling discharged and have up-to-date payments without any dues. Request the information from the builder.

If House Belongs To a Private Individual

  • Ask the seller for the registration number of the property of the apartment and the registry property. This is done to identify the holders and not carry surprises later.
  • Check if the home has a mortgage or any other type of liens.
  • To know all these data, it is enough to ask for a Simple Note in the Office of the Property Registry.
  • The checks must be done to find out if the home is up to date with payments of community fees that may exist.
  • You must also check that the seller is aware of the payment of the Real Estate Tax.

Legal Rules to Buy Your House

When you want to buy the house and start negotiations, then it is time to verify that the particular property has all the necessary documents to carry out the purchase and sale. The most important is to have the advice of a real estate expert lawyer to review the documents and detect disputes.

Requests the seller copies of sale deeds, their official identification, latest property and service payment bills. This process helps you to know that the home you are buying has correct documents . Also, you should check the below points .

The Location

Verify that the property is located in the same place as mentioned in documents. Unfortunately, it can happen that the name of the streets would be changed. In that case, go to the corresponding delegation of your area, and verify that the previous name of the street will coincide with the deeds.

Name of the Owner

The only person authorised to sell the property is the same person who appears as owner in the deeds. So it is essential to verify with the official identification about your data. If the seller of the house has two names and only one is mentioned in the document. In this case, a clear identity must be made in the notary.

Permits and Plans

The new constructions have architectural plans and facilities, as well as a construction license and a notice of completion of work. The specifications of the particular documents must correspond to reality.  If the paper says it is a five-floor building, then it should not have six floors because in case of incurring this abnormality the work can be closed.

Learn More How to Get Building Permissions 


When you buy a property, it is important that the developer guarantee in documents that property has no debt at the time of signing the deed for electricity or water services.  Also, at the time of notary, they will verify possible encumbrances or problems of litigation. You must detect possible setbacks before the process is more advanced.

Purchase and Sale Contract

Now you have all the information about the property in order, and you are ready to sign the sale agreement for a property transaction. The contract must include identification of the property to be acquired such as street, number, neighbourhood, area, and type of construction.  The construction specifications and other additional features in detail. Also, it includes the total price of the property and the way it will be paid.  The date of delivery and if the home has quality insurance or terms of the guarantee in case of hidden defects. In the case of new housing, either in the body of the contract or in annexes should also stipulate the amenities and services of the housing complex.

Deed Documents

It IS time to get a deed of the property in your name. The documents are presented in the original and the previous deed registered in the Public Registry of Property. The paid bills of water from the last five years. Along with your documents, you must pay an advance to pay for some procedures and necessary documents to be checked before buying a flat such as certificates and the appraisal of the property. The other notarial expenses such as fees and taxes that are to be paid when signing the new deed. The process will be completed between 25 and 30 calendar days.

Signature of the Deed

The process concludes when you and the seller come to sign the deeds. You have to make the final sale of the property either through check or transfer of money through the bank.

Once the documentation has done with the final signature, the notary presents a copy of the documents including valuation and certificates of non-indebtedness to the Public Registry with the corresponding payment of taxes for the Registry to register the purchase and sale transactions.

Now, you can be sure that what you just signed and the money you just paid makes you the owner of the house that you have dreamed of.

Property Adviser is the first real estate property directory in Hyderabad. It lists under-construction and ready-to-move residential properties for sale in Hyderabad. Our expert team visits every project to find out about the cost, location, amenities, date of possession, and so on.  Also brings photos that show the stage of construction of the property. You get detailed and verified information about all properties in Hyderabad at one place. This helps you to shortlist properties from the comfort of your home.

Discover your dream home from more than 900+ apartments for sale in Hyderabad at Property Adviser. Select the best flat that suits your needs to lead a happy lifestyle.

By: Shailaja K