Owning a property is an important thing in ones life. However, it is important to be careful while buying land / property to avoid falling into legal hassles.

A lot of care is required from the beginning, which starts right from seeing the site till the registration of land. The legal status of the property is one of the most important issues that you should address before confirming a property. You should not give any advance before getting confirmation about the legal status of the land / property.

Before buying a property, a number of checks are required to be made to ensure that the land has a clear and marketable title. The first important thing is to find out the tenure, and the legal right of holder of the land in government records. The possession right or tenure could be freehold, leasehold or may be held under a government grant or 'sanad'. The most preferable is the free hold land. The seller should provide all the essential legal documents to the buyer.

The various important documents that a property buyer should avail from the seller are:

• Title deeds
• Tax receipts and bills
• Encumbrance certificate
• Agreement Registration

The legal documents that are required for buying residential / commercial property in India:

For salaried individuals
1) Latest salary slip showing statutory deductions

• 2) Form 16 (Declaration from the employer giving the details of income and deductions, duly signed by an authorized signatory of the Company) OR Latest acknowledged IT Returns

3) Bank statements for the last 3 months

For self-employed individuals / proprietor

• 1) Computation of income for the last 2 years certified by a C.A. OR P&L and Balance Sheet for the last 2 years certified by a C.A.

2) Copies of acknowledged IT Returns for the last 2 years

AND

3) Bank statements for the last 6 months

Partnerships

• Computation of income for the last 2 years certified by a C.A. OR
• P&L and Balance Sheet for the last 2 years certified by a C.A. OR
• Copies of acknowledged IT Returns for the last 2 years

AND

Partnership Deed, Letter of Authority, Bank statements for the last 6 months, Proof of office.

Private Limited Companies

• Computation of income for the last 3 years certified by a C.A.
• P&L and Balance Sheet for the last 3 years certified by a C.A.
• Copies of acknowledged IT Returns for the last 3 years
• Memorandum and Articles of Association, Board Resolution, Bank statements for the last 6 months
• Authority letter from all directors to accompany the application form with photographs of authorized signatories, if not specified in the board resolution, Proof of office

Documents required for (NRIs)
Salaried NRI Applicants

• Copy of valid passport showing VISA stamps
• Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
• Latest contract copy evidencing Salary / Salary Certificate / Wage Slips
• Overseas Bank A/C for the last 3 months showing salary credits

Self Employed NRI Applicants

• Trade license or equivalent document
• Six months overseas bank account statement and NRE/ NRO account
• Computation of income, P&L account and B/Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)
• Passport copy with valid visa stamp Brief profile of the applicant and business