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Commercial property documents | Important documents to check before buying a commercial property

May 14, 2020

Commercial Property Documents

There are numerous homebuyers who prefer to purchase resale commercial property instead of under-construction properties. Before buying a property, you need lots of money along with some major documents. The property which you are planning to buy should have proper ownership titles along with government permissions. You need to get all the authorities from Statutory Authority. Here are some important commercial property documents which everyone should have before buying commercial property:

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Mother Deed

The parent document or mother deed is the document which traces antecedent ownership of the commercial property from the beginning. This happens when the property has several owners. This document is helpful in making a further sale of a particular property and it can be helpful in the establishment of new ownership without any hassle. If the mother deed is absent, then copies can be obtained from registering authorities. It also includes a change in proper ownership, gift, partition, inheritance, and sale. It is quite important that last ownership deals should be available with the unbroken and continuous sequence in this document. This sequence is required to be updated when the property is transferred to the next owner.

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Sales Deed

The sale deed is a kind of legal document which works as a sale proof and ownership of property transfer from the seller to the buyer of the property. The sale deed should be registered and it is compulsory for every buyer. Before execution of sale deed, one should check terms and conditions which are agreed between seller and buyer. The buyer should also look if the property has got clear title or not. If the property is subjected to any kind of encumbrance charges, then the buyer needs to take care of it and it should be mentioned in the sale deed.

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Building Plan

The building approval plan needs to be sanctioned by the Municipal authority or corporation. The property owner needs to get approved plan from authorized officer. Most of the authorities sanction building plan which is based on road width, zonal classification, and plot depth and floor area ratio. One should submit particular documents set to the owner to get building approval plan. The documents in this plan include title deed, PID number, assessment extract of property and early sanctioned plans. It is important that the owner of the property should hire a professional architect who can draw the entire plan meeting. Within four to five days, you can get the building approval plan.

 

Encumbrance Certificate

Encumbrance certificate implies ownership charges and liabilities which are created on a particular property. It is held against any home loan as security and the EC consists of various registered transactions which are done on the property during that period. It is a kind of certificate which is sought for a particular period.

Completion certificate

The completion certificate is quite important and it ensures that particular property is built according to the local laws and can be occupied by people without any difficulty. This certificate is mostly issued by Municipal Corporation of the particular area. It is also helpful to get electricity and water connections in the property.

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Tax Paid receipt

Every building requires paying certain taxes to the government department. One needs to check that all the taxes have been paid by the property owner before buying it. To ensure this, you need to get the tax paid receipt.

Power of Attorney

The POA is a kind of legal process which is useful to provide authority to another person by the owner of the property. One might give GPA or special power of attorney to the buyer so that the one’s right can be transferred to another person from a property.

Receipt of betterment charges

The improvement/development fees are to be paid to the Corporation authority of the area before the Khata is issued to the buyer. The developers need to pay a proper amount of money which is known as betterment charges and that’s why you should get the receipt of betterment charges before buying a commercial property.

Stamp Duty

Stamp duty is a kind of sales tax which is collected by the government and it should be paid at a time totally. This document is considered quite important legal document before you buy a new property.

Now that you know about all the important documents which are necessary to get the documents. You shouldn’t ignore any of these documents if you want to get commercial property. The property would be only yours if you will make sure that you have all of the above documents at the time of purchase.

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