Selling a home in India involves multiple legal formalities, including collecting and presenting various documents. Having these documents ready ensures a smooth transaction and builds trust with potential buyers. Infinity Housing explains the essential documents needed and their importance.
Key Documents for Selling a Property
1. Chain of Sale Deed / Title Deed
- A legal document proving the sale and transfer of property.
- Includes details of previous owners (name, age, address), property specifics (carpet area, location), sale amount, and possession date.
- Particularly important for resale properties to prove clear title and legal ownership.
2. Building Plan
- An approved building plan from the local authority ensures the construction is authorised.
- Helps avoid future legal complications.
3. Encumbrance Certificate (EC)
- Confirms that the property is free from legal or financial liabilities, like loans or mortgages.
- Covers property transactions over the past 12 years.
- Can be obtained from the sub-registrar’s office.
4. Completion Certificate (CC)
- Issued by the competent authority confirming that the building is constructed as per the approved plan.
- Ensures the property is safe, legal, and eligible for utilities connections.
- Required for obtaining the Occupancy Certificate.
5. Occupancy Certificate (OC)
- Issued by local government or planning authorities after project completion.
- Confirms that the building is fit for occupancy.
6. Tax Receipts and Utility Bills
- Proof of payment of property taxes and utility bills.
- Ensures no outstanding liabilities and is often required for home loan processing by buyers.
7. No-Objection Certificate (NOC)
- Required if the property is part of a housing society with an active association.
- Confirms that the society has no objection to the sale.
8. Succession Certificate (if selling inherited property)
- Issued by the civil court to legal heirs of a deceased person.
- Confirms the right to sell inherited property and collect proceeds.
- Essential when the deceased did not leave a Will.
9. Possession Letter
- Provided by the builder to the buyer to confirm successful transfer of possession.
- Not required for resale properties.
10. Power of Attorney (POA)
- Mandatory when the property owner cannot be physically present for the sale.
- The POA holder has the legal authority to sign documents and register the property in the buyer’s name.
- Commonly used by NRIs selling property in India.
Additional Considerations
- Sellers must foreclose any existing home loans once they receive payment from the buyer.
- Banks release the original property documents after the loan settlement, which are then used for completing the transfer process.
Frequently Asked Questions (FAQs)
- A sale agreement is a preliminary contract between the buyer and seller that outlines the terms and conditions of the property sale, including price, payment schedule, and possession date.
- It is legally binding once executed and is used to initiate the transfer process.
- Yes. The sale agreement must be signed by both the seller and the buyer to be legally valid.
- It may also require witnesses and registration depending on state regulations.
Infinity Housing advises all property sellers to keep these documents ready before listing their property. Proper documentation not only speeds up the sale process but also builds credibility and prevents legal disputes.
