Legal Documents Required for Purchase of Property

Legal Documents Required for Purchase of Property

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is the safest investment in the world.”-Franklin D. Roosevelt.

Purchasing a house to be called home is a gigantic decision, and it takes your years of earnings and every bit of your understanding to get that “one perfect house”. In the present day, where property rates are skyrocketing, and you save your hard-earned money to buy something so unique, it must be invested in some real estate that is out of the world and hassle-free.

Sometimes the process of purchasing the property is not hassle-free because of the legal documents required for the purchase of a property.

Legal documents play a vital role in the process of purchasing since it takes a long time to get such legal documents filed and approved. It becomes a massive cause of concern when even one of these documents is left unfilled or incorrectly filled.

Legal issues arising from such cases are common since society is sometimes ignorant about such necessary records. Although the land is a tangible asset, its ownership cannot get established by a claim; instead, it must be supported by several documents that establish the property’s ownership status.

The buyer can ensure that the investment gives peace of mind and a sense of security by getting the right legal guidance, carefully reviewing documentation, and verifying the proper legal documents required to purchase a property.

List of legal documents required for the purchase of property

Agreement to sell

It is the first agreement made for the property’s proceeds of sale and purchase between the buyer and the seller. It is a mandatory document binding upon the understanding between the buyer and seller of the property. It is one such legal document required for the purchase of property used in a court of law as a piece of evidence.

This document contains a comprehensive list of facts regarding the property, including the terms and conditions, the date of possession, the payment schedule, the specifications, information regarding the common spaces and facilities, etc.

The developer must complete the property’s construction according to the agreement. This document must be shown in its original form when buying a property and applying for a mortgage.

Absolute sale deed and title deed

It is one of the major legal documents required for the purchase of a property required to buy a property. This document deals with the actual transfer of ownership from one person to another. Here there are two primary documents; one is the sale deed, and the other is the title deed.

A sale deed is a written agreement showing all details related to the buyer/ buyers and the seller/sellers. The ultimate purpose of this deed is to state that property has been transferred in the name of such a person. The name “title deed” stems from the fact that this document, by establishing the buyer’s ownership, also serves as a statement regarding the ownership of the property.

The benefits of a sale deed include:

  • A sale deed is a legal document that establishes the sale transaction’s legal legitimacy.
  • It states the buyer and seller’s rights and responsibilities in full.
  • Additionally, the property’s description is provided.
  • A registered sale deed can get utilised as proof in any disputes.

Title search and report

This legal document required for purchasing property is mainly for research purposes. Here all history of the property dealing with the property description and names of title holders, joint tenancy, etc. are stated. This research helps to find whether or not this property is worth investing in or not as a third party is involved. Title search and report documents are principally made for home loan agreements.

Khata Certificate

This legal document required for the property purchase indicates that the property has a record in the local authority’s files. It is differently known in different states. The Khata certificate is a document that proves who is the rightful owner of a piece of property.

A taxpayer can use it to register a new property, transfer an existing property, or access a variety of utilities like a water connection, a business licence, a building permit, etc.

Receipt of property tax

This legal document required for property purchase essentially works as a record that provides proof that the previous owner paid all taxes due. The property incurs a fee for unpaid taxes, which reduces its marketability.

The buyer must confirm with the local government that the seller has not fallen behind on paying property taxes. It guarantees no outstanding debts and establishes the property’s legal standing. It also provides proof of the property’s legal status, making them crucial pieces of documentation.

Encumbrance Certificate

The encumbrance certificate is a crucial legal document for purchasing a property. An encumbrance certificate states that no debts are owed on the property and that the title is free and clear of encumbrances.

The encumbrance certificate includes information on each transaction made concerning the particular property.

For the banks to approve your request for a house loan, you must present the encumbrance certificate. It is an important document when one wants to buy or sell a property and serves as proof that the property is free from legal liabilities and confirms that there are no outstanding loans.

Occupancy Certificate

For home buyers, it is essential to ensure that the certificate of occupancy and other legal documents required for the purchase of a property are all in place.

A building’s occupancy certificate certifies that the property is built per the approved plans. The agencies and authorities of the local government issue the occupancy certificate. And the certificate is provided when a building is ready for habitation.

Every prospective buyer should ask the builder or seller for the occupancy certificate. If a property does not have an occupancy certificate, it may be demolished without warning since thought to have been constructed in violation of the rules and plans.

Statement from a bank if loan outstanding

It is safe to ask the seller for a bank statement on the property when the buyer is purchasing one. Since the statement serves as proof of any unpaid loans, this serves as the loan against property transparency proof. Before signing a contract, it is crucial to conduct due diligence and review some paperwork to determine any owed loans on the property you are purchasing.

As a prospective buyer, you can request that the seller pay off the house loan balance in full or part, collect the original documents from the bank, and have the property registered in your name before paying the balance due.

It is one such legal document required for purchasing a property that will build a trustworthy relationship between the buyer and the seller and work as a binding agent.

Non-objection Certificates

The building’s developer should have requested several non-objection certificates (NOCs). The Environmental Department, the Traffic and Coordination Department, the Pollution Board, the Sewage Board, and other departments have a few NOCs. As a result, construction will receive “Intimation of Disapproval”.

This legal document required for the purchase of a property will help get a sense of satisfaction amongst the buyer that no illegal activities are conducted here. It will build the reputation of the particular property.

Sanctioned building plan by the statutory authority

The buyer should carefully review the building plan and layout approved by the local municipal authorities when purchasing an apartment or land with an existing building. They should also look over any approvals given by the government, statutory, and regulatory bodies for the provision of infrastructure facilities like water, sewage, electricity, environmental clearance, fire safety approval, etc. It ensures that customers are wary of any developer deviations from the approved plan.

Power of attorney

If someone acts with the property’s owner’s consent, they must have an original Power of Attorney. This legal document is needed to purchase the real estate power of attorney, through which the other person is granted permission to act in the owner’s place legally.

Check the legal documents required for the purchase of a property to determine the rights of the Power of Attorney holder if you are purchasing a property. If anybody is acting with the owner of the property’s consent, an original Power of Attorney is required. It could be general or particular.

Why is it essential to take legal advice before purchasing a property?

A lot of research and preparation goes into purchasing a house. The only person who can assist the buyer in finding any restrictive language in past purchasers’ agreements is someone trained to interpret legal papers. It may refer to the land, as the building may have been built on freehold property, where the buyer receives absolute ownership.

The land may have also been purchased on a lease, in which case, at the end of the lease’s term, the original owner will eventually become the new owner of the land.

Compliance with the real estate (Regulations and Development) act, 2016 (RERA)

It is good for a buyer (who plans to purchase a property) in a development covered by the RERA to confirm the property is registered with the agency. Developers are required under the RERA to register their projects with the organisation created by the Act.

The information available on the RERA web portal for each state also provides details of any cases and complaints filed against the project’s developer and default by the developer. Thus it provides valuable insight into the developer’s credibility and the project and helps the buyer check and assure themselves about the property. It is also a legal document that should be considered and given total value while purchasing any property.


In India, about 66% of civil cases are land related; the Centre reported this for Policy Research.

We frequently look for amenities like hospitals, retail centres, parks, the property’s location, water, electrical services, etc., when we start to buy a house. But is that sufficient? Although significant, these considerations don’t always ensure you obtain the greatest bargain regarding legal matters.

Before purchasing a property, looking up all legal documents required for the purchase of a property is also a thing to consider. Even when one of the documents is missing, it can cause huge chaos on the legal front. To subside all such problems, it’s better to be safe than sorry.

“Ninety per cent of all millionaires become so through owning real estate.”- Andrew Carnegie.


Is it essential to check electricity and water bills before purchasing the property?

Yes, checking all utilities, like electricity, water, and gas, is essential before purchasing the property, and it is necessary to consider them.

What shall a person consider before transferring an immovable property?

The Transfer of Property Act recognises only the sale of any movable property as a means of absolute transfer of ownership. Any transfer of ownership cannot be made through a will, affidavit, or other legal documents.

Which document is required to prove the ownership of the property?

A title deed is required to prove the evidence of property.

What is the essential document in real estate?

A property deed is the most crucial document in real estate.