Why the paperwork comes first
A good apartment is built on clear land, proper approvals and a fair agreement. You can verify most of this before paying anything. Ask the builder for copies, keep them together, and have an advocate read them if anything is unclear. A reliable builder will not mind the questions.
The 12-point checklist
1. RERA registration certificate
Confirms the project is registered with the state regulator. Look up the number on the regulator’s website and compare the promoter’s name, units and completion date. Our guide to checking RERA registration in Karnataka walks through it.
2. Title deed and chain of ownership
Shows that the builder or landowner has a clear right to the land, and how the ownership passed from one owner to the next. Gaps or disputes in this chain are one of the most serious risks.
3. Encumbrance certificate (EC)
A record of registered transactions on the property, such as mortgages, for a stated period. Ask for a recent one that covers as many years as your advocate advises, and check that the property is free of loans or claims.
4. Approved building plan
The plan sanctioned by the local planning authority. Check that the number of floors, units and the layout match what you are being sold.
5. Commencement certificate
Permission from the authority to start construction. A project that has started without it is a red flag.
6. Land-use or conversion order
Where the land was previously agricultural, ask for the order that converts it for residential or commercial use.
7. Khata certificate and extract, and property tax receipts
In Karnataka, khata is the record the local body keeps for a property. Ask for the land’s khata documents and recent property tax receipts, and ask how individual khata for your apartment will be handled after registration.
8. No-objection certificates and clearances
Depending on the project, these may include fire safety, environmental, water and power connections, and height clearance where relevant. Ask which ones have been obtained and which are pending.
9. Completion and occupancy certificates
For a ready-to-occupy apartment, the occupancy certificate confirms the building was completed as per the approved plan and is fit to live in. For an ongoing project, ask when it is expected and what the builder will do if it is delayed.
10. Draft agreement for sale
Read it before you sign. Check the carpet area, the total price and what it includes, the payment schedule (it should be linked to construction stages), the possession date, parking, the specification of fittings and the terms for delay or cancellation.
11. Bank approvals
Ask which banks have approved the project for home loans. Approval from banks means they have already examined the legal papers and technical progress.
12. The builder’s track record
Look at the builder’s earlier projects: were they completed, did they receive their completion certificates, and can you speak to residents? Visiting a finished project tells you more than a brochure.
Red flags
- Documents shown but not given as copies.
- Requests for cash payments, or payments to an account that is not the company’s.
- An agreement that changes the carpet area, price or possession date that was quoted.
- Reluctance to share the RERA number, approved plan or title documents.