Checklist: Important Documents You Need When Buying An Apartment In Hyderabad

Hyderabad is emerging as a top market for those planning to buy real estate for both end-use as well as investment. This was visible in a report on the second quarter of the current financial year released by PropTiger DataLabs, according to which Hyderabad was among the top five cities that witnessed a rise in home sales. The city saw an increase of 24 per cent in the home sales over the previous quarter while the new launches soared by 20 per cent over the same period.

Interestingly, the inventory overhang also stood at a minimal of 21 months making it a perfect location on the liquidity front.

Emerging as the new Bengaluru, there is a huge demand for flats in Hyderabad driven by the rising commercialisation in the city. Thus, calling for a large population migrating to the city in search for employment opportunities.

In the past 41 months, property prices in Hyderabad increased by 19 per cent.

So, if you have recently moved the city and planning to buy a home of your own or are lured to invest in this promising market, you will have to undergo the process of verifying the property when making a purchase.

To simplify this process PropGuide gives you a compilation of documents you would need when buying an apartment in Hyderabad:

Title deeds

It is important that the property has a clear title. Assessment Register Ledger entry, also known as Khata in few parts of the country, is a document for title verification. The entry of the property is made in the municipal or panchayat records with which the seller can get the title of property through purchase, inheritance, by partition, by settlement, by gift or by grant. For verifying the title of the property, here are the documents based on the way the rights have been accrued:

Source: Registration and Stamp Department of Telangana

Tax receipt and bills

Check the receipts of property taxes paid by the owner. Ensure that the name in the owner's column matches with the name of the person who paid the tax. Along with this, do check the house tax receipt. Ensure that the electricity and water bills are paid up to date.

Sanctioned plans

Building plans for property in Hyderabad are approved by the Greater Hyderabad Municipal Corporation (GHMC). The approval is granted for commercial complexes and apartments as per rules mentioned in G.O.Ms. No. 541 MA, dated 7.11.2000 and G.O.Ms.No. 86 MA, dated 03.03.2006, G.O Ms. No. 301, dated 11.04.2008. Thus, this needs to be duly checked and one should ensure that the building has sanctioned plans.

4. Stamp duty & registration

Do check the documents of title to ensure that stamp duty is paid.

Source: Registration and Stamp Department of Telangana

Release Certificate

Release Certificate is required a loan has been taken from the bank by pledging the land. It is important to see that the seller has paid all the dues and the bank has issued the release certificate. Land can be bought in the absence of release certificate. But, it is necessary for you to take a loan in the future.

Conveyance/Sale deed

Sale Deed contains the complete details of the property such as address and the complete area of the property. It has the basic details of both the parties. Along with this, details of token amount and method of payment are also given. It needs to be signed by both the parties along with two witnesses.

Urban Land (Ceiling & Regulation) Act Certificate (ULC)

This certificate is issued under the Urban Land (Ceiling and Regulation) Act, 1976. It is created to bring about a fair distribution of land in urban agglomerations.

Index II

Issued by the office of the Sub-Registrar of Assurances, gives the name of the buyer and seller of the property.

The 7/12 extract document

Issued by the tehsildar or the land authority, this document gives the details of ownership.  It gives the details of area, survey numbers and the date from which the current owner was registered as the owner of the property.

Development Agreement

Development Agreement lists the terms and conditions under which the landowner has allowed the developer to carry out the construction. It is supported by a Power of Attorney in the name of the developer.

Ownership documents

If the developer has undertaken an agreement with a landlord. In such a case, you should verify the title of the land. Take legal help, if needed.

Commencement Certificate

Greater Hyderabad Municipal Corporation issues this certificate allowing the developer to start with the construction process.

Completion/Occupation Certificate

This is issued by the Greater Hyderabad Municipal Corporation along with the sanctioned building plan.

Non-Agricultural (NA) permission

This is a permission granted for the land on which the project or property is constructed. This certificate ensures that the land is not meant for agricultural use.

No Objection Certificates (NOC)

NOC from Telangana government is required, which will give permission for carrying out the construction of new or existing house in Hyderabad. Also, NOC from different authorities such as water, electricity and lift authorities needs to be obtained.

Encumbrance Certificate

Encumbrance Certificate (EC) shows that the property is free from monetary and legal liabilities. The EC released after 1983 can be obtained from the Sub Registrar Office or Meeseva Centres while the ones prior to 1983 can be only obtained from Sub Registrar Office.