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12 Legal Documents You’ll Face During Your Home Buying Process

12 Legal Documents You’ll Face During Your Home Buying Process

Although the process of purchasing a new home is exciting, any errors you make can cause you a lot of difficulty. The biggest and priciest purchase that anyone makes in their lifetime is undoubtedly a house. Before such an occasion can take place, in reality, there must be a lot of paperwork and certain requirements to be met. We’ve compiled a list of 12 legal documents that you’ll need to seal the deal on your dream home to make it simple for you.

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Sale Deed

A sale deed is a record that proves who owns a piece of land. It also contains information about the buyer and seller, the land, the buyer’s rights, and other things. Ownership of the land is formally acknowledged by the buyer named in the sale deed. The main legal record attesting to the sale and change of ownership of real estate from the seller to the buyer is a sale deed. It also establishes the buyer’s evidence of possession of the property, which makes it a crucial document for the buyer’s subsequent sale.

Certificate of Non-encumbrance

A non-encumbrance certificate is a legal document that details every transaction involving a specific piece of property over a given time frame. It is a crucial document needed before applying for a loan from any financial organisation in the nation. Hence, the non-encumbrance certificate ensures that the property is exempt from all legal or financial obligations, such as a mortgage or an outstanding loan.

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Building Permit Plan

Before construction can start, builders must clear a number of regulatory obstacles. The building plan and the approved layout are the two major components of a plan for building approval. Your plans will be approved and stamped if all the requirements are met and your entry is in order. You will be contacted by the municipality to provide your authorised plans, after which you can begin construction.

Commencement Certificate

The certificate of commencement is the document issued by the relevant body approving the builder’s start of the project after assuring that all requirements have been satisfied. It is a crucial document that mandates starting a housing project, and once it is occupied, the owner becomes qualified to use amenities like water, electricity, roads, and sanitation.

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No Objection Certificate

A No Objection Certificate is a statement that grants consent for a person or business to move forward with the acquisition or building of real estate. Applicants must acquire a NOC for building construction from the relevant government officials before building a flat, a bungalow or any other structure.

Home Buyer’s Insurance Policy

A home owner’s insurance coverage essentially protects one against property damage to the home or personal property contained therein. A typical homeowner’s insurance coverage covers both your home and your personal property.

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Property Survey

A property surveyor makes precise measurements to determine a piece of land’s boundaries and creates reports, maps, and plots for use in building or other legal documents. Purchasers of homes and properties can prevent future hassles like boundary disputes by getting a property survey. This is particularly crucial if it pertains to your property and you want to know if there are any problems that need to be revealed before you decide to buy a property.

Khata Certificate

A Khata Certificate includes details about the property, the owner’s credentials, the location, the carpet area, and the built-up area. In various regions of the state, obtaining a khata document is necessary to secure construction permits, layout plan approvals, and bank loans. Owners can easily get water and power connections if they have the Khata Certificate.

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Purchase Agreement

The Purchase Agreement is a legal document that binds the buyer and seller. The Purchase Agreement establishes the conditions on which the Seller and the Buyer have agreed to sell the property and initiates the process leading up to the Closing.

Escrow Agreement

An escrow agreement contains a detailed description of the parties’ responsibilities. Escrow agreements commonly label the escrow agent as a third party. This party will keep the security or asset of a certain value until the conditions set forth in the agreement are satisfied.

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Allotment Letter

To purchase a property, an allotment document is necessary. Once the buyer reserves the house and gets it, the builder generates an allotment letter. Only the first owner receives it from the seller; subsequent owners may ask for a copy of the initial letter.

Closing Disclosure

A closing disclosure is a five-page document that provides the last information on the mortgage financing you have chosen. The conditions of the loan, your anticipated monthly payments, and the total amount of fees and other costs associated with obtaining a mortgage are all included.

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Hence, it’s crucial to comprehend all the legal papers associated with the home-buying process to ensure that everything goes as planned and that you are completely protected.


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