A property sale is a complex process that consists of several elements and parties. It is required that the parties to the transaction discuss matters carefully, negotiate and iron out their differences before the preparation of the sale agreement. The details of the transaction need to be recorded in the sale agreement in the form of terms and conditions that in clear and unambiguous words lay down the rights, duties, and obligations of the parties to the transaction.

Other than this sale agreement, there are several other documents and papers that are of value and capture the details of the various stages of the transaction for legal and financial purposes. These documents are obtained at nearly every stage of the transaction like before the making of payment to the builder, before the registration of the property, before taking possession, etc. This article seeks to explain the documents needed from a builder after a property sale and its importance.

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What are the important documents needed from a builder after the registration of the property?

  • Allotment Letter:

This is a document that is given to you by the builder which is of great importance. You obtain this document after having thorough discussions with the builder on details like what preferences you want to be fulfilled by the house. It could be access to a great view or the choice of the floor/storey etc. This letter may contain construction details like the materials used, construction plans, architectural details and features of the property, etc. It is an important document for the buyer to avail a home loan if required.

  • Builder Buyer Agreement:

This is another important document, both for the buyer and seller. This document contains all the important details, clauses, terms and conditions of the transaction recorded. Some of the important clauses are the time frame of the project, the clause regarding payment, the clause regarding penalties and default charges of the buyer, the title clause, approval sanctions obtained by the builder to undertake the project. This document is important to protect the rights of the parties to a transaction and provides legal implications of the default of either party.

  • Copy of possession certificate:

Once the builder has fulfilled all the promises s/he made with respect to the amenities of the property, the floor size and other associated features of the property, the property is considered ready for possession. After the buyer signs the possession certificate, s/he is given a copy of the certificate for record purposes.

  • Allotted Parking Agreement/Certificate:

This certificate given to the buyer highlights the area allotted to the buyer for parking of the vehicle and is also an agreement that states that the buyer shall not transfer the parking space to another in any way.

  • Chain deed for the last 30 years:

As a buyer, you need to know the history and past ownership of the land upon which the building has been built. By ensuring that you have documents and deeds and that show the legitimate source or origin of the land usage, you secure your ownership interests.

  • Tripartite agreement:

This document highlights the agreement between three parties, the builder, the bank, and the buyer. This is in case a builder has taken a loan to finance the building or development of the project. This document also contains details of the project and relevant information like the quantum of the loan amount received by the builder, the carpet floor area of the project, the possession date, penalty clauses in case of default or failure to repay, etc. This agreement also lays down the rights and obligations of the three parties with respect to the property. The builder’s name is mentioned for the buyer does not get possession until the completion of the project and other legal processes.

  • No encumbrance certificate:

This document given by the builder signifies that there are no encumbrances, outstanding loans or debts on the property. This is usually in the form of a lawyer’s report and to confirm that the property has not been transferred to another person other than the buyer.

  • Receipts of payment:

There are several costs involved in a property transaction that are of miscellaneous, secondary or ancillary nature. The buyer needs to be aware of these for he is the one who has to bear these expenses in the end. The builder provides the buyer with a comprehensive break-up of the costs borne by the buyer from a particular stage in the construction of the property or project until the time of taking possession. This also serves as a certificate from the builder to certify that the buyer owes no dues to the builder.

  • Completion Certificate:

Once the project has been completed in all respect and has reached the stage where the buyer can take possession of the property, the builder issues a completion certificate to the buyer stating in clear terms that the project has been completed successfully with all the legal and official requirements met under the various laws.

  • Occupancy certificate:

This is an important document issued by local authorities certifying that the property is safe and the construction complies with local laws. Thus, the occupation of the building is permitted. So, before occupying, do not forget to ask for this document from the builder.

When it comes to loan based sale, there are certain additional requirements that need to be met:

  • Make sure that the home seller has approval from the lender to sell the flat.
  • The seller may have pending dues on the property with the lender and the lender is entitled to present the sale from happening until the home loan dues are not met.
  • It is advisable to ask the seller for the original title documents, mutation records, encumbrance certificate etc. to check for outstanding dues on the property.

When it comes to purchasing a resale property there are some additional requirements:

  • You need to make sure that the seller has the chain of title document or sale deed. This document records previous ownership of the property.
  • Ensure that there are no encumbrances on the property by asking for an encumbrance certificate.
  • You could also get a title search done that allows you to get documents that have recorded the history of the title of the property.

In a Joint Development Agreement (JDA):

  • A builder does not purchase land to build the property but enters into an agreement with the landowner to share the profits from the sale of the property.
  • If you as the landowner also intend to own flats in the building built upon your land, you need to make a supplementary agreement with the builder.
  • While the primary agreement allows you to share the revenues or profits from the sale of the property, the supplementary agreement will mark the flats that will be transferred to you.
  • Make sure that your agreements are registered.
  • Under the registered supplementary agreement, the landowner who gets possession of the flats does not need to pay stamp duty on the flats.

What is a builder’s endorsement?

When an allottee is allotted a certain residential property from the builder, such allottee may either choose to occupy the property or sell it to a third party homebuyer. For this transaction to succeed, you need to take the builder into the loop.

  • The transaction between an allottee of property and a homebuyer is effectively a resale transaction.
  • For this transaction, you require a tripartite agreement executed between the allottee, buyer and the builder which states the nature of the transaction, in which the property details mentioned, the payment details are given, etc.
  • The builder will also give a No Objection Certificate (NOC) to the resale transaction.
  • When the sale agreement is made between the buyer and allottee, the builder needs to endorse this agreement to validify it.
  • With the builder’s approval, the allottee can sell the allotted property to the buyer.
  • The builder’s endorsement and involvement in the transaction are of paramount importance for the transaction to succeed.


There are several documents that are required to be received by the buyer from the builder after the completion and registration of the property. This is for legal record purposes and has an evidentiary value that can be presented in a Court of Law in case of disputes. Documents like title deeds, buyer-builder agreements, tripartite agreements, possession certificates, etc. are documents of great significance and mention the various property details that a buyer should be specifically aware about.

The buyer needs to confirm that the property is unencumbered or free from dues or has no mortgage on it. S/he also needs to know the break up of expenses that they have paid to the builder or developer to get ownership and possession of the house.