Important Documents to Check Before Buying Property in Chennai

Chennai is one of the best destinations for real estate investment in India. You can buy property in Chennai at more affordable prices than other major cities like Mumbai and Bangalore. These properties, as long as they are located in a well-developed neighborhood, would be able to fetch you high ROI over the long term. Lower entry points allow for greater resources to be spent on property development, renovation, or expansion, which helps you to enjoy an impressive resale value from the property down the line. 

Checking the property documents 

Budget-friendly properties coupled with a robust economy make investing in the Chennai property market an attractive proposition. However, as you plan to buy the best investment property in Chennai, you must see to it that the property is completely legal and its paperwork is in order. Here are some of the most important documents that have to be checked and verified when buying land in Chennai. 

Patta

This is a legal document obtained from the office of Tahsildar and serves as an important record for claiming ownership of land. The patta would be in the name of the actual owner of the land. You must make sure that it is in the name of the persons selling the land to you. Certain buyers may claim that the Patta document is in the name of the previous owner, but you should not accept it. Patta is one of the most important documents necessary to buy property in Chennai.

Details listed in a patta include: 

• Patta Number
• Name of the owner
• Survey number and subdivision
• Name of the District, Taluk, and Village
• Is it a Wetland or a Dryland 
• Area of the land and tax details

You can check the patta online. After the registration of the property is done, the patta shall be transferred to the new owner automatically. 

Encumbrance Certificate (EC)

As you try to make the best property investment in Chennai, you must make sure that there is no legal claim on your chosen land and that it is free of any legal holding.  For this, you need to have the Encumbrance Certificate or EC for the property. This document affirms that the property is free from monetary and legal liabilities. It is among the most vital documents necessary while seeking a loan against property from banks. EC features details of the transactions related to the property and shall help achieve proper entitlement. The EC is issued by the office of the registrar and will highlight if there is any loan taken on the land.

Parent Deed and Sale Deed

A parent deed is a statement that includes the details of the rightful owner over a particular piece of land. This document, also referred to as ‘Thai pathname’ in Tamil, includes the unbroken flow of the title up to the present owner.  The title of a property is transferred through a sales deed when two parties in a property transaction agree. This is done at the sub-registrar's office. It is a legal document that is meant to record the change of possession of ownership, title, and rights of the property to the buyer from a seller.

Certificates of Approval

When searching for the best investment property in Chennai, you have to see to it that the land is approved by any of the two major regulatory bodies, the Chennai Metropolitan Development Approval (CMDA) and District Town and Country Planning (DTCP). CMDA approval would be necessary if a property comes under the CMA or Chennai Metropolitan area. In case the property is located outside the city limits, then the DTCP approval will be needed. 

Non-Agricultural (NA) Order

India is primarily an agrarian economy. Hence, the government allocates a set of land across the nation that is strictly meant for agricultural use. All land in India is agricultural land unless stated otherwise. The government issues a document called the Non-Agricultural Order or an NA Order for land that is not to be used for agricultural purposes. Before buying a plot of land in Chennai, you have to make sure that the property has been certified as non-agricultural land. Otherwise, the construction on that plot is deemed illegal.  NA-Order is needed for both residential and commercial properties. 

Documents are an extremely important part of real estate investments. They tend to act as proof of ownership and transactions. Certain documents are also necessary to check to make sure that the property is developed in compliance with the rules and regulations put in place by the respective real estate authorities and the government. Hence, as you decide to buy property in Chennai, you must prioritize checking all the documents discussed above before making any decision. Doing so is vital to ensure the security of your investment. 

Author bio: Being a real estate developer, the author has vast knowledge of the real estate industry. With his knowledge, he helps people with their real estate-related concerns and queries through his blog.