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Home buyers, pay attention to paperwork!

Last updated on: August 13, 2010 10:04 IST

Owning a house of his own is on everyone's wishlist. And while purchasing a house/flat, most people opt for home loans. But obtaining home finance is not child's play and involves several steps, which need to be completed in tandem.

One such step is gathering all the necessary documents without which a bank or lender may not sanction a loan.

This article attempts to provide a detailed account of the different documents that need to be in place before you can avail a loan.

Common requirements for all applicants:

Application form duly filled in.

Documents for identity proof like driving license, passport, PAN card, ration card, letter from a recognised public authority or public servant verifying your photograph, confirmation letter from your employer or another bank verifying your photograph etc.

Address proof:  Driving license, Voters ID, Passport, Ration card, Bank assbook or Bank , Utility Bill telephone, electricity, water, gas (less than 2 months old) etc.

Age proof:  the above documents or school/ college leaving certificates can be provided for age proof.

Income proof

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Home buyers, pay attention to paperwork!

Last updated on: August 13, 2010 10:04 IST

Self employed/entrepreneurs 

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Home buyers, pay attention to paperwork!

Last updated on: August 13, 2010 10:04 IST

Salaried individuals

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Home buyers, pay attention to paperwork!

Last updated on: August 13, 2010 10:04 IST

Documents required when buying the flat from the builder

Original copy of the agreement between the buyer and the builder: the agreement must contain the liability of the builder to construct the building according to the plans and specifications approved by the local authority.

It should also mention the possession date, price to be paid by the purchaser and the intervals at which the installments towards the full payment are to be made. This document is of utmost importance.

If the buyer has the original copy of the agreement, then the builder cannot sell the same property with another party unless the deal is cancelled.

This is a breach. In cases, when the builder tries to dupe the buyers by selling one property twice, the agreement copy plays an important role.

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Home buyers, pay attention to paperwork!

Last updated on: August 13, 2010 10:04 IST

It also fixes the liability with regard to financing, defaults, settlement costs, actual possession, risk of loss and all of the terms and conditions that are expected of the parties must be included in the contract

Development agreement between the owner of land and the builder: It contains the details regarding the terms and conditions on which the landowner has permitted development of his property. This document acquires great importance during a transaction for a property under construct.

Property titles. These show who the true owner of the property is. It shows whether the title is clear or the property is under litigation, and whether the land is freehold or leasehold.

If it's leasehold, the terms of the lease are important. It also helps you to know whether the seller has the authority to develop and sell the property and if it is free of encumbrances.

Mr A bought a house and found that the seller's title to the property was burdened with mortgages and unpaid taxes.

In this case, it causes trouble to him as either he has to pay the unpaid amount or has to file legal cases on the seller to recover the money.

Hence it is better if the title of the property is clear and marketable, that is the seller should be the genuine and actual owner of the property. Also, the property should not be under any dispute or litigation. 

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Home buyers, pay attention to paperwork!

Last updated on: August 13, 2010 10:04 IST

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Home buyers pay attention to paperwork!

Last updated on: August 13, 2010 10:04 IST

When buying from co-operative society

Apart from the earlier documents (except development agreement and property titles) required in case of buying from builder, while buying from co-operative society, the following documents are also needed.

If constructing on own land

While the paper work may seem cumbersome, it is of utmost importance. This in times of litigation and disputes will help the buyers protect themselves and not just keep the dream house a dream but a reality.


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