Dear Sir/Madam, I'm buying a new apartment directly from the builder in a new construction in Vizag. The builder has submitted various documents including OC, new building permit, environmental clearance and others. I have also downloaded the EC for the land with all the link documents. I also have the two previous legal opinions with the land sale deed number, date and all that confirming the authenticity of the land and proposed building. Since it is a new building, for EC for the apartment, will it be enough to get a document on letterhead from the builder that it is not sold to anyone else and that I'm the first buyer? Will I need anything else? Thank you.
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
Apply for and obtain bank loan for purchase of flat
2) bank will do due diligence and will sanction loan if title is clear and marketable and flat not sold to third party
3) title search in sub registrar office will reveal whether any sale deeds have even executed by builder for said flat
4) you can obtain letter from builder that flat not sold to any purchaser if you so desire
By obtaining Encumbrance Certificate from the jurisdictional Sub Registrar's Office for the land on which the apartment complex is constructed and for the individual apartment , you will come to know if it was sold earlier to any other person or it's a unsold apartment. As you have rightly suggested get also a letter from the builder stating that so far it's not sold to anyone else and you are the first buyer of this apartment.
A mere letter from the builder will not serve the purpose. Please do not rely on the documents provided by the builder alone. Expert opinion counts. It is better to engage a competent lawyer to scrutinise the chain of documents and offer his written opinion on the title of the property proposed to be purchased.
I have been able to download the encumbrance certificate for the entire building and project with all the link documents. However, there is no mention of any document for my proposed Apt no. I get the same encumbrance certificate by either typing the builder name, survey no., or by typing the Apt. no., building name. Locality and door no. for the building are the same in both searches. I spoke to the builder and he said since these new apartment numbers are yet to be registered, there is no document for search for specific apartment EC. The only EC that is showing now is for the entire building, land, and approved construction. The builder is giving me a free hold on the apt certificate on their letterhead on Monday. In the absence of apt specific EC due to no document no. or registration, the builder letter is all I have as proof for no prior sale. Please advise.
Take bank loan for purchase of apartment
Dear Client,
The documents you mentioned, such as the Occupancy Certificate (OC), new building permit, environmental clearance, and the Encumbrance Certificate (EC) for the land, are all crucial in ensuring the legitimacy of the property. Regarding your question about the EC for the specific apartment, it's common for such documents to not be available until the apartments are individually registered. In the absence of an apartment-specific EC, a document on the builder's letterhead confirming that the apartment has not been sold to anyone else and that you are the first buyer can indeed serve as additional proof of ownership. However, it's essential to ensure that the letter from the builder includes all relevant details, such as the apartment number, building name, survey number, and any other identifying information. This letter should also be duly signed and stamped by the builder for authenticity. Overall, while the absence of an apartment-specific EC might seem like a gap, the builder's letter can serve as a valid interim solution until such documentation becomes available.
While a letter from the builder stating you're the first buyer is a positive sign, it's not sufficient for an Encumbrance Certificate (EC) for the specific apartment. Here's why:
However, there are alternative ways to confirm the property's status:
Builder Agreement: Meticulously review the agreement you have with the builder. It should clearly mention the specific apartment you're buying and confirm its free from any encumbrances.
Sale Deed with Undertaking: A registered sale deed with an undertaking from the builder can serve as proof of your purchase and guarantee the apartment is free from claims. This undertaking should state that the builder will be responsible for any existing or future encumbrances on the property.
Here are some additional points to consider:
Verify Builder Reputation: Research the builder's reputation in Vizag. Look for online reviews and check with local authorities for any complaints against them.
Don't Rely Solely on Verbal Assurances: While a letter from the builder is a good starting point, don't rely solely on their verbal assurances. Get everything documented properly in the sale agreement and undertaking.
By taking these steps, you can be more confident that you're buying a property with a clear title and minimizing the risk of future disputes.
Arunkumar Khedia
Advocate Bombay HighCourt.
No information through the letter head of the builder will be an authentic evidence in case of dispute in this regard in future.
The builder has to execute a registered sale deed in your favor which will automatically authenticate the legally valid sale of property in your favor.
Alternately you can also submit an application to the concerned sub registrar to trace the title or to make sure that there is no other encumbrance in any form against the property you are proposing to purchase.
- You should also check the documents upon which the said builder has got authorization of constructing the said building, whether builder is the owner of the land or has got registered collaboration from the owner.
1. Building approval plan
2. Commencement Certificate (For under construction property) - It is a legal document issued by the local authorities after the inspection of the site.
- This document states that project meets the given criteria and helps in the commencement of a construction on a site by the builder. Without getting a Commencement Certificate the construction would be considered illegal,, and attracts penalties and can even attract an eviction notice.
3. Conversion Certificate - This certificate is issued to change the use of the land from agricultural to non-agricultural purpose from the competent revenue authority.
4. Encumbrance Certificate - An EC consists of all the registered transactions done on the property during the period for which the EC is sought, and this certificate is for a particular period evidencing the property purchase/sale, the presence of any transaction or mortgage.
5. Completion Certificate (for a constructed property)- It is issued by the municipal authorities denoting that the building is in compliance with their rules in terms of height, distance from the road, and is constructed as per the approved plans etc. This document is important at the time of purchasing a property and seeking a home loan.
6. Occupancy Certificate (for a constructed property) - This certificate is obtained after the completion of the construction. It is important at the time of buying a property, seeking a home loan.
If the flat that you are proposing to purchase now has not been sold by a registered sale deed earlier, then yo cannot get any details in the encumbrance certificate.
The EC will contain the details of the entire extent of the property and the details of the flats sold already.
The builder's letter will in no way going to come to your rescue at the time of dispute in the future, however if that would satisfy your present query then you can obtain and keep it along with papers of the property.
It is always advisable that you obtain a proper legal opinion from an experienced local lawyer before going for purchase, if you neglect this issue then you will not be satisfied with any number of answers you may get from public forums like this.
1. Yes it's true that unless there has been specific apartment registration, EC can only show the transaction for the entire building constructed over the particular land.
2. Take the freehold certificate from the Builder in respect of the particular apartment you intend to buy in addition to checking the original documents.
To stress my point again, please engage a competent lawyer and seek hi/her written opinion after scrutinising all related documents.