Property Documents One Should Verify Before Buying Property in Hyderabad

Once you choose your dream property the immediate thing to do is to check the status of the property documents and whether or not they meet the requirements of local authorities.

Following are the documents you should ask for and examine, before making a buying decision:

Title Deed

Title deeds are documents typically describing a property’s ownership history. Title deeds are those documents on the basis of which the present owner can claim absolute ownership of a property.

The property title deed should be in the name of the seller; otherwise it may lead to future litigation over the property by other claimants.

Building Permission

Constructing or developing a land requires an approval from GHMC (Greater Hyderabad Municipal Corporation). The approval, called a “building permit,” is usually given on the basis that the builder submits the necessary documents as GHMC mandates. Besides verifying ownership of the property, checking the building’s legalized construction is of the utmost importance.

It is always advisable to cross-verify with GHMC to ensure that the Building Permit provided is indeed a genuine document in order to avoid future trouble from the authority.

Occupancy Certificate (OC)

Once building permission is obtained from GHMC by a builder, construction begins. The GHMC authorities are again involved when it is ready to be occupied and they issue a certificate commonly referred to as the “occupancy certificate”. This indicates that the construction was done in accordance with the building plans and standards and is ready to be occupied.

Occupancy Certificate (OC) reaffirms that the building is a legally authorized construction and can be used to obtain loans from banks or obtain documents issued by other government authorities.

Mutation Document

It is a legal identification document that contains all the details of a particular property, such as the owner’s name, the built-up area of the building, the location, and other important information about the property that helps to fill the property tax with the GHMC.

Encumbrance Certificate (EC)

An EC is a document issued by the Sub-Registrar reflecting the encumbrance (if any) on the property such as home loan, charges etc. The certificate is issued by the Sub-Registrar indicating the details of all registered legal duties or any transaction related to the property for the period requested in the submitted application.   

Property Tax Receipts

Property tax is the tax levied by state government on owner of the land and/or building, based on the location and the area/ built-up area. It is important to check that the seller has paid the government all the tax dues otherwise the Municipal Authority will impose penalties based on the value of the property assessed until such payments are made.