What things to check before buying a newly built house by a builder?


KF Mentor
Hey, guys. my family was thinking of buying a new house developed by a builder in a private colony.
I was wondering how could I verify that this property is legal and all.
What documents to consider before paying the amount?


KF Mentor
If anyone's interested, these are my findings:

Title Document:
  • Sale Deed: If they have bought it from someone else
  • Gift Deed: If their family gifted them
  • Conveyance Deed: If they bought it from the Municipal Corporation
Note: Do not buy from power of attorney (can be revoked)

Channel Document: X -> Y -> Z
  • Check if the person you are buying from has bought the property properly.
  • Mention clearly in the Sale deed when buying - you are buying from Y and Y has bought it from X (in detail).

Encumbrance Certificate:
  • This is important when buying a property which might be having loan issues or tax-related issues.
  • We can get this online.

Check Urban Development tax receipt:
  • Ideally, It needs to be paid after every year.
  • This document clearly states the title - who owns the property.

  • After purchasing the property, go to the registrar and do a sale deed.
  • Check-in which area this property comes from: UIT(Urban Improvement Trust), JDA (Joint Development Agreement) or Municipal Corporation
  • Go to the respective authority out of the three take a copy of the sale deed and fill out the mutation form to change the name of the owner of the property.

Conversion Certificate:
  • This is valid only for agricultural land. Make sure you buy only the land that has been converted already.


KF Mentor
Any specific reason you didn't include the NOC?
I think NOC (No Objection Certificate) applies to flats or properties in any society.
It gives us an idea to know whether the owner has paid all the maintenance charges and stuff or not.

For a newly built house, I don't think it'll be applicable.
Let me know if you have a different opinion.