Are you looking to invest in a retirement community? Do you know the documentations that are needed? Documents are an important part of buying an independent home, a flat or empty land. You do not want to go wrong with the legalities.
Here is a comprehensive checklist of documents needed for investing in a retirement home
1. Sale Deed
This is a legal document that is the proof of sale and the act of ownership of the property. The seller must settle all outstanding payments before executing the sale deed. These are water, society, electricity, maintenance charges and property tax.
2. Mother Deed
This is a parent document that traces the ancestry ownership of the property. This is an important document that aids the further sale of the property. Everything from the change of ownership through inheritance or partition is mentioned here. For any missing events and sequences, one should visit the registering office as the deed must be updated till the current owner.
3. Power Of Attorney or POA
This is a legal document which gives power to another person on behalf of the property owner. A Special Power of Attorney or a General Power of Attorney is given to transfer one’s rights over one’s property. An original copy of this document has to be submitted while applying for a home loan.
4. Encumbrance Certificate or EC
It is the charges on a property that is held as a security against a home loan. This particular certificate consists of all registered transactions that were done during the period for which the EC is sought. This acts as evidence of a sale/purchase of the property and any mortgage or transaction that happened during the period.
5. Commencement Certificate
A commencement certificate is an authorized document issued by the local authorities after the examination of the site.
6. Completion Certificate
This is issued by the municipal authorities denoting that the building is in compliance with their rules and is constructed as per the approved plans. This document is important at the time of buying a property and while applying for a home loan.
7. Occupancy Certificate
This certifies that the retirement home or project is ready for occupancy and is constructed according to the approved plans. This is given by the local authority to the developer.
8. Payment Receipts
This is proof that all outstanding are paid for by the owner. Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the municipality. Ask for an original receipt if you’re buying a new property and a copy of the paid receipts if you’re buying a resale property from the seller.
9. Sale Agreement
Betterment charges are also known as development fees/improvement charges that are to be paid to the municipality before a Patta can be issued.
Patta means ‘Account’. It is an account of a person holding a property. Banks ask you for this document while applying for a home loan. It typically consists of
(a) Patta Certificate – A Patta Certificate is mandatory and is required for the registration of a new property and the transfer of a property. This is proof that the property is legal and is incorporated into the municipality records.
(b) Patta Extract – Patta Extract is attaining the property details from the assessment registrar. It is needed while property buying and obtaining a trade license.
11. Approval Of The Building Plan
A building owner has to get an approved plan for the property from the jurisdictional commissioner or an officer authorized by such commissioner, without which the property is illegal.
12. Allotment Letter
This letter is issued on the letterhead by the developer or the housing authority, giving the complete description of the property and the amount paid for purchasing the property. The original of this letter is only issued to the first owner and the owners coming after that can ask for a copy of this document from the seller while buying.
These are the documents you will need while buying a retirement home. Make sure to you take the help of an experienced lawyer to vet the documents thoroughly before submission.
With these documents duly in place, your dream of living a peaceful retired life in a beautiful retirement community will become a reality.
We at The Chennai Homes offer the globally acclaimed concept of “Age In Place” for our retirees!
To get a call back from one of our executives, click here.