DOCUMENTATION

The contents of this page are meant to serve as a general guide only and should not be used as a substitute for professional legal advice. It is vital that you appoint a solicitor to assist you with the documents for your property purchase, irrespective of your level of experience. Not only will this ensure that you are getting correct up-to-date professional advice and assistance, there are some things that only a qualified solicitor will be able to do.

Clear Title
The first, and arguably the most important step, before buying a property is to have your solicitor inspect and approve the original title documents to ensure that the property you intend to purchase is not encumbered or otherwise the subject of any legal dispute. Without clear title you will be unable to get a loan against the property and you will face a host of legal complications that may result in you losing money and/or the property itself.

Approved Building Plan
Prior to commencing construction, the builder/developer will create a Building Plan that will contain, amongst other things, the layout of the project, the number of buildings, floors and apartments and other information directly related to how the builder/developer intends to construct the project. This Building Plan must be approved by the Municipal Corporation (or concerned authority) and your solicitor should check to ensure that such approval has been obtained and that the property you intend you purchase is legally sanctioned/approved.

Agreement for Sale
Also referred to as a Conveyance Deed or Sale Deed, this a deed document that sets out the terms and conditions upon which the builder/developer has agreed to sell the property. It will contain the responsibilities of the builder/developer in terms of deliverables in accordance with the approved plans, and will also set out your payment obligations for the same. The Maharashtra Ownership Flats Act, 1963 requires that copies of the title certificate and the Approved Building Plan be attached to the Agreement of Sale.

Commencement Certificate
Once the building plan has been approved, the Municipal Corporation (or concerned authority) will issue a Commencement Certificate, which enables the builder/developer to begin construction.

Completion/Occupation Certificate
Once the building has been completed in all respects, the Municipal Corporation (or concerned authority) will inspect the premises to ensure compliance with safety regulations and all approvals that had been granted during construction. Once satisfied that these criteria have been met, a Completion/Occupation Certificate is issued which certifies that the building is complete and fit for occupation.

37 (I) Clearance
For transactions above a certain value in specified cities, the buyer and seller of the property must jointly file Form 37 (I), requesting the issuance of a No Objection Certificate from the Appropriate Authority as defined under the Income Tax Act. A sale/purchase transaction is considered to be incomplete and invalid if this clearance is not obtained. If the Approved Authority feels that the sale price is underdeclared, they retain the right to purchase the property at the declared price and re-sell it by auction/tender. As at June 2004, 37 (I) clearance is required for properties valued at or above Rs. 75 lacs in Greater Mumbai and at or above Rs. 25 lacs in Pune.