The complete law and legality concerning the sale of the property may vary from State to State. However, some of the permissions and documents that need to be obtained and provided by the seller are similar. You must purchase a property only after verifying the documents. This will help you to avoid any future legal issues about the property.

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What are the documents required for the sale of a under-construction property?

Some of the documents that need to be checked for the purchase of residential properties that are under construction includes:

  • Title deed

The title deed of the property is an important document that helps in the determination of the ownership of the property. It is also the document that provides a person with the freedom to sell the property. The buyer should ensure that you verify and cross-check the original title deed of the property.

The title deed should be in the name of the builder or the developer and this needs to be checked to make sure that there is no other person that has the right to transfer the property. This will help the buyer to confirm that the transfer is legal and that there are no litigations that are pending on the property. It is always advisable to get the title verified by a practicing property lawyer.

  • Intimation of disapproval:

This is a document that the builder has to obtain in the different stages of construction. This is inclusive of all the documents like the approvals and the Non-objection certificate from the various local authorities authorized for the same such as Storm Water and Drain Department, Sewage Departments, Forest Department, Environment Department, Traffic and Coordination Department, Chief Fire Officer, Airport Authority and Pollution Board, among others.

  • Commencement Certificate:

The commencement certificate is the document that permits the builder to start the construction works on the property. It can be obtained by making an application to the local authorities or the municipal corporation. The certificate is only issued after the builder has complied with the various legal requirements for construction and the building plan is approved. It is important to get a commencement certificate issued because any constructions that are carried out without the certificate is illegal.

  • Encumbrance certificate:

The encumbrance document can be obtained from the Sub-registrar’s office. This is an important document as it tells you if the property has any legal or monetary liabilities pending on it. It also helps the buyer to check if there are any pending court cases on the property that they wish to purchase. An encumbrance certificate can be obtained for 30 years as well. It is also an important document when you want to avail of loan facilities from the bank.

  • Approval layout plans:

Assetscan-documentsThe layout plan of the construction works to be carried forth needs to be approved by the local authority or the municipality. The buyer should take extra caution to check through the building approved layout plans as there are chances that the builder has deviated or modified the plan and added an extra floor or reduced the open space.

In such circumstances, the construction works that are carried out differently from the plan is illegal and can be demolished. Thus all the building plans must be checked to avoid monetary loss and complications in the future. A conversion certificate is needed in cases of using the agricultural property for any other purposes.

  • Purchase agreement:

The purchase agreement must contain all the major details about the construction works to be done, to ensure that everything that has been promised to you is present in the document. You can hold the builder liable for only those specifications that are present in the agreement and not the ones that are verbally promised.

The agreement should include all the details of the project such as the specification, apartments, payment terms, completion deadlines, and the type and amount of penalty in cases of default caused by either of the parties. The agreement should also state the transfer of the common area into the society to avoid the builder from carrying out any further construction works on the property.

  • Occupancy Certificate and Completion Certificate:

The completion certificate is the document that shows that the real estate property is constructed as per the building standards and is proof that the construction is legitimate. It is issued after inspecting the property. This is a vital document that needs to be obtained by the builder or the buyer to avail facilities such as water, electricity, etc.

The occupancy certificate is also a document that is issued on the completion of the construction. It shows that the building works done on the property is done following the approved plan. It is the final sanction that the building built is ready for occupancy.

What happens if an asset under a tripartite agreement is sold to other party?

The main purpose of tripartite agreement is to provide the buyer with the financing option. The tripartite agreement is an agreement between the builder, borrower and the lender. It also ensures that the property has clear title. It is also important to note that the drafting of a tripartite agreement allows the buyer to ensure that the builder does not sell off the property to another person. If an under construction property which is under a tripartite agreement is sold to another party by the borrower, then  the borrower is considered as a confirming party. You can get the sales deed registration after the completion of the construction activities.


Summing up, it is to be stated that investment in property is a long time investment and it is important that it is carried out carefully. In cases of carrying out construction works on the property, then you must get all the required documents checked and verified to avoid any future legal complications. The various documents that need to be cross-checked include the title deed, commencement certificate, completion certificate, occupancy certificate, encumbrance certificate, etc.

It is also important that all the construction activities that are carried out on the property are following the approved building plan. If any extra construction works are carried out, then it might result in the construction being illegal. It is also important on the part of the buyer to get all that is promised to him, in the purchase deed. Legal backing can only be obtained to those contained in the documents and not otherwise.