Buying a property is a big dream for many people, as it is a major investment in their lives. However, this dream can quickly become a nightmare if not handled carefully. When it comes to purchasing or investing in residential and commercial property, it’s important to pay attention to the details. To achieve your dream of owning commercial and residential property, whether you’re a first-time buyer or an experienced real estate professional, doing your homework on legal documents is crucial when buying properties in Ahmedabad.
This guide will help you understand the vital documents when purchasing or owning residential and commercial property in Ahmedabad.
Legal Documents Required for Commercial Business
While purchasing commercial and residential property in Ahmedabad, certain legal documents are essential to ensure a smooth transaction and protect your investment. Here below are what you need to know:
1. Sale Deed: The sale deed is an important document when you buy commercial and residential property. It serves as proof that the seller transfers ownership to you, to make it legally valid, you must register the sale deed with the appropriate authorities. Before completing the purchase, ask any questions you have about the details in the deed. Additionally, ensure that the seller pays all the required fees, including property taxes and utility charges, before signing the sale deed. Taking these steps helps you avoid future issues with your investment in commercial and residential property and ensures that the transaction is legal and binding for both parties.
2. Building approval plan: The building approval plan is an essential document to check before buying commercial and residential property in Ahmedabad. You must obtain this plan from the local Corporation or Municipal authorities. An authorized officer, such as the jurisdictional Commissioner will approve it. Authorities review the plan based on factors like zonal classification, road width, floor area ratio (FAR), and plot depth. To secure approval, you must provide several documents, including the title deed, property PID number, city survey sketch, updated tax receipt, property drawings, and foundation certificate. These documents help evaluate construction progress and facilitate necessary changes.
3. Encumbrance certificate: An Encumbrance certificate is a very crucial document that verifies that there is no type of due or claim towards the property. Such a certificate can be obtained from the sub-registrar’s office. EC includes all registered transactions relating to a particular asset over some time, it is a proof of sales, purchases, and mortgages. This document is essential for proving that the property is free from any type of legal inconvenience, So, this will give you peace of mind.
4. Tax receipts and stamp duty: Property tax receipts are important documents, they contain details of all the property bills due and will be proof that there are no dues to the government or municipality. On the side of the buyer, you would need to collect the latest receipts on tax and verify details such as the owner’s name, taxpayer’s name, and even payment dates. If the present owner is not in a position to provide necessary receipts, you can contact the municipal body to check the property’s ownership.
5. Stamp Duty: Stamp duty is another essential document for owning residential and commercial property. It is a tax, similar to sales or income tax, collected by government authorities during the property transfer. The government authorities collect the stamp duty on the change of ownership of the property. Proper stamp duty payment will guarantee recognition of your legitimacy and ensure the protection of your investment.
6. No Objection Certificate (NOC): This document is extremely important and is required while purchasing real estate residences and commercial property in Ahmedabad. The NOC (No Objection Certificate) from the local authorities confirms that there are no objections regarding the transaction or how the property will be used. The NOC will ensure that the property meets local rules and applicable zoning laws in place. The certificate would help in preventing any future disputes or issues related to the property that may come up later on.
7. Khata Certificate: A Khata Certificate is an important document that proves ownership of a property in Ahmedabad. It shows that the property is registered in the owner’s name with the local municipal authorities. This certificate is necessary for getting services like water and electricity and for paying property taxes. Ensure real estate developers provide Khata certificates while buying any residential or commercial property. It helps confirm that the property is legitimate and protects you from any future disputes about ownership or liabilities.
8. Compliance under RERA (Regulation and Development) Act, 2016: The RERA (Regulation and Development) Act, 2016, aims to increase transparency in the real estate sector in Ahmedabad Builders have to provide complete details, along with timelines and finances, about their projects before advertising or selling any properties under this act. They have to register their projects with RERA before a single advertisement and sales occur, thus guiding buyers away from scams.
RERA for the buyer of commercial and residential properties provides a sense of assurance that a project will be completed on time, and there is a right to compensation in case it gets delayed. Therefore, Overall, RERA helps create a fair and secure environment for everyone involved in property transactions.
9. Power of Attorney (POA): A power of attorney is one of the legal documents that allows an individual to act on behalf of another. It becomes more helpful in real estate when the owner cannot himself or herself be physically present to manage the property or sell it. When a person is given the authority is called the “principal, while the person receiving the authority is referred to as the “attorney-in-fact” or “agent.” A POA can either be general or specific based on what the principal wants. Hence, it must be drafted and registered in the proper way to avoid later legal hassles.
Wrapping Up!
When buying property in Ahmedabad, you need to ensure that all of the documents are correctly placed. These involve a sale deed, title deed, encumbrance certificate, NOC, Khata certificate, etc. It also encompasses tax receipts and building approval plans. Proper documentation protects your investment and helps avoid future legal issues. Having all these documents in order safeguards your investment and helps prevent future legal complications. Taking the time to confirm the legalities ensures a smoother buying process and peace of mind.
Shafalya Infra has proudly supported over 1,000 families and 500 entrepreneurs in their property ventures. We are now launching new residential projects like “The Verity,” “Veritas,” and “Aurum Legacy,” alongside our commercial project “Unicus-Shyamal.” We are committed to quality and community development, Shafalya Infra continues to enhance Ahmedabad’s real estate landscape with innovative offerings.