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When buying property from developers, it's crucial to conduct a thorough due diligence process to ensure that all legal, technical, and financial aspects are in order. Below is a detailed guide to the key documents and checks you should focus on before making a purchase:

1. Property Card of Land

• Definition: The Property Card, also known as the Record of Rights, is an important document that shows the ownership details of the land, including the current and previous owners.
• Why It’s Important: It helps in verifying the legitimacy of the land ownership and ensures that the developer has the right to sell the property.

2. Land CTS Nakasha (City Survey Number)

• Definition: The CTS (City Title Survey) Number is a unique identification number assigned to a land parcel by the land records department.
• Why It’s Important: It ensures that the land parcel being developed is correctly identified and matches the description provided by the developer. This document is crucial for avoiding any disputes related to land boundaries.

3. Pherfar and Advocate Search Report for the Last 30 Years

• Definition: The Pherfar is a document that provides a historical record of all the transactions related to the land, while the Advocate Search Report involves a legal search into the land’s title history over the past 30 years.
• Why It’s Important: This ensures that the land has a clear title, free of any encumbrances, mortgages, or legal disputes. It’s essential for confirming that the land is legally transferable.

4. JV and POA Agreement or Purchase Deed

• Definition: JV (Joint Venture) Agreement outlines the terms of partnership between two or more parties in the development project. The POA (Power of Attorney) Agreement gives legal authority to an individual or entity to act on behalf of the owner. The Purchase Deed is the document that legally transfers ownership of the property from the seller to the buyer.
• Why It’s Important: These documents ensure that the developer has the legal right to construct and sell the property. Reviewing these documents helps verify that the project is legally sound.

5. Commencement Certificate

• Definition: The Commencement Certificate (CC) is issued by the local municipal authority and permits the developer to begin construction of the project after all necessary approvals are obtained.
• Why It’s Important: It confirms that the construction is being carried out in accordance with the approved building plans and is legally authorized.

6. RERA Certificate (if applicable)

• Definition: RERA (Real Estate Regulatory Authority) registration is mandatory for all real estate projects. The RERA certificate ensures that the project complies with the regulations set by the RERA Act.
• Why It’s Important: It provides transparency and protects the buyer’s interests by ensuring that the project meets all legal requirements and timelines.

7. Check Flat Area in Sanction Plan

• Definition: The sanction plan is the approved building plan that outlines the detailed layout of the project, including the flat sizes and configuration.
• Why It’s Important: Verifying the flat area in the sanction plan ensures that the actual area matches the promised area by the developer. This includes checking for carpet area, built-up area, and super built-up area.

8. Completion Certificate

• Definition: The Completion Certificate (CC) is issued by the local municipal authority after the construction is completed, certifying that the building complies with the approved plans.
• Why It’s Important: It confirms that the construction is complete and has been built according to the approved plans, making it safe and legal to occupy.

9. Final Completion Plan

• Definition: This plan is the final layout and design of the project as completed, which may include any modifications made during the construction.
• Why It’s Important: Ensures that the final construction matches what was promised in the sanctioned plan and brochures.

10. Deed of Declaration Copy

• Definition: The Deed of Declaration is a legal document that declares the ownership structure of the property, including details about common areas, amenities, and the rights of the individual flat owners.
• Why It’s Important: This document is crucial for understanding the ownership rights, usage of common areas, and maintenance responsibilities within the property.

11. Check Flat Amenities as per Brochure

• Definition: Developers often provide brochures that list the amenities offered within the project, such as swimming pools, gyms, gardens, and parking.
• Why It’s Important: Ensure that all the amenities promised in the brochure are provided in the actual construction. This can prevent future disputes regarding missing or incomplete amenities.

12. Developer’s Legal Documents

• Firm Registration: Verify the firm’s registration with the Registrar of Companies or relevant authority to ensure it is legally recognized.
• Firm PAN Card: The Permanent Account Number (PAN) card of the firm is essential for tax purposes and should be verified to avoid dealing with fraudulent entities.
• Firm GST Certificate: The GST (Goods and Services Tax) certificate confirms the firm’s compliance with tax laws.
• Proprietor Registration: If dealing with a sole proprietorship, ensure that the proprietor is registered and has the legal capacity to undertake the project.
• Partnership Deed: If the developer is a partnership firm, the partnership deed should be checked to understand the roles and responsibilities of each partner.
• Company Registration Certificate: For companies, verify the company registration certificate to confirm its legal standing and the authority of the directors.

Additional Suggestions:

1. Check for Encumbrance Certificate:
• Definition: The Encumbrance Certificate (EC) is a document that shows the legal status of the property, confirming that it is free from any monetary or legal liabilities.
• Why It’s Important: It ensures that there are no existing mortgages or loans against the property.
2. Verify Environmental Clearances:
• Definition: Environmental clearances are required for large projects to ensure that the construction does not harm the environment.
• Why It’s Important: Ensures compliance with environmental regulations, which is crucial for both legal and ethical reasons.
3. Check for NOCs (No Objection Certificates):
• Definition: NOCs are required from various authorities like the fire department, water supply department, and electricity board.
• Why It’s Important: Ensures that the project has all the necessary approvals to provide basic utilities and safety measures.
4. Review Payment Schedule and Loan Sanction:
• Definition: The payment schedule outlines the installment payments, while the loan sanction letter from the bank confirms the loan terms.
• Why It’s Important: Ensure that the payment schedule is reasonable and that the bank has sanctioned the loan, which often includes its own due diligence.
5. Inspect the Site Personally:
• Why It’s Important: A personal visit to the construction site allows you to inspect the quality of work, assess the neighborhood, and ensure that the construction progress matches the developer’s claims.
6. Engage a Legal Advisor:
• Why It’s Important: A legal advisor can help you navigate the complex documentation, verify the authenticity of the documents, and protect your interests throughout the transaction.

By meticulously reviewing these documents and following the above suggestions, you can ensure a secure and transparent property purchase. Remember, investing time in due diligence now can prevent potential legal and financial troubles in the future.

Nishka Group