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Legal aspects to buy a property in Chandigarh

Owning a property requires a lot of hard work and dedication. We have to cultivate discipline and earn well while saving for contingencies. Even when we have a substantial amount of money saved, property investment only comes when we experience prosperity. Although buying a property sounds exciting, it gets riddled with complexities.

Documentation is a part of any undertaking. Several businesses require a lot of literature. However, there is no need to be bogged down when dealing with assets. Get updated on all the nitty-gritty before venturing into any deal.

This discussion is a pep conversation to help you be aware of property transactions. We will highlight the most prominent legal documents that you must be informed. We recommend you to skim the discussion several times before making a thorough study. You can even consider making short notes to ease your understanding.

There are many facts related to real estate documentation and deals. Such circumstances appear sprinkled in this discussion. However, as a heads up, we will share a couple of them outright. According to regulations, you cannot apply for a ‘khata’ until all your property taxes stand paid up-to-date. A sale deed alone does not endorse titles to property; there are other supporting documents.

The typical legal documents related to assets

In your endeavor to either buy or sell a property, you would get bombarded with several legal documents. You must safeguard these documents to make your future secure. Please note that being unable to furnish the mandatory documents might end you up in legal tussles. You must be dynamic and above the game to seal your deal seamlessly.

We can summarize the awareness of real estate documents as below -

  • Title Deed: Although this may sound trivial, in reality, it is not. A title deed endorses that the seller is fully competent to transfer the property to a prospective buyer. The title deed can be used by the buyer to be sure that the seller has complete ownership. There could be cases wherein the seller has the development rights.
  • Encumbrance Certificate: This notable document highlights that the property staged is free from any legal dues. When buying a property, experts suggest acquiring an Encumbrance Certificate for a minimum of fifteen years. Encumbrances related to the property are at the Sub-Registrar’s office.

The Sub-Registrar’s office must be able to throw light on the background related to the property. Such information will generally encompass if there are any mortgages or third party claims.

  • Master Plan: Your seller or builder would sometimes quote encouraging developments like shopping malls in the vicinity or residential schools. However, it would help if you do not fall for such tall claims. It would help if you were wary that such facilities materialize.

You must carefully go through the master plan and convince yourself that the facilities announced would be feasible. These master plans can mainly be available from the local town planning department. Ensuring that the land use zone gets optimally designed, you would stand a chance to be blessed with excellent facilities like highways or metros.

  • House Plan Approval: Did you know that pre-launch prices get offered when real estate firms begin selling a project. The pre-launch prices are generally discount prices and await municipal approval or clearances. One such consent is the house plan approval.

As a prospective buyer, you must ensure that the place where your property gets located has got approval, including the building plan. You must keep a watchful eye to note if any laws have been violated.

  • Conversion to Non-Agricultural Land Certificate: Any agricultural land cannot be used for residential purposes. If such an incident occurs, then the property would be rendered illegal. If you believe that the area used to be agricultural, you must get a conversion certificate issued by revenue authorities.
  • Land Use Certificate: The Land Use Certificate ensures that a residential property does not get placed in an agricultural, commercial, or industrial zone. If this violation occurs, there is every chance that one day the residential property would be demolished.
  • No Objection Certificate: The No Objection Certificate (NOC) works on a handful of amenities. The seller must be able to furnish NOCs for water and electricity. The prior certificate is in addition to urban non-ceiling NOC.
  • Commencement Certificate: The Commencement Certificate ensures that the builder has all the necessary sanctions before construction.
  • Property Tax Receipts: Property Tax Receipts for the past three years paid to respective authorities is a must.
  • Sale Deed: The Sale Deed ensures that the property has a free title. A Sale Deed has to undergo registration within four months from the date of execution.
  • Khata Certificate or Extract: Khata is the account of a seller or the owner of the property and is essential for buying property. Generally, there is only one type of khata which may change due to regulations.
Frequently Asked Questions (FAQ)

1. Why are property deals riddled with so many legal documents?
Property deals involve a lot of money and are vulnerable to mismanagement. Hence, property deals are almost bureaucratic.

2. Does this mean that property transactions induce anxiety?
No, there is no need for you to be tense. However, you must be alert and not fall prey to fraud.

3. Can I engage a third-party person to take care of my transactions?
We cannot confirm since it depends on the situation. Based on the trust, you can either engage or work-out yourself.

4. How can I build my knowledge of the documentation?
The Internet is a powerful medium to scale your awareness. There are several articles but do not get confused by too many definitions.

5. Do documents vary across property types like land, apartment, or villa?
While there are some standard documents across property types, there could be variations.


A property is like a divine blessing. You would love to see your progeny flourish in your dwelling. While property-related transactions may sound tedious, in practice, they are not exhaustive. An able person well-versed with the real estate industry would be able to work wonders. Know the processes to perfection and be familiar with the documentation like the palm of your hand.