Key stages in documentation

The 7/12 extract is a document that lists the names of the owners of the property. It contains such details as the Survey numbers, area and the date from which the current owner's names were registered as owners. The 7/12 extract is issued by the Tehsildar or the concerned land authorities. Along with this, the corresponding record of rights in Form No. 6 for the last 30 years needs to be obtained

Index II: Index II is a document issued by the office of the Sub-Registrar of Assurances. It mainly mentions the names of the sellers and purchasers of a property, for which the document is registered.

Search report and title certificate: A title certificate is issued by an advocate after conducting a search of the title of the property intended to be purchased. The title certificate states if the property is unencumbered and has a clear marketable title. This search report and title certificate can be obtained from one's own advocate or, if the search has already been conducted by the current owner, one can have ones advocate inspect these reports to ascertain the title of the property.

This search on the title of the property is taken for a period of the last 30 years. It is mandatory for the developer to annex a copy of these reports in the ``Agreement for Sale'' with the intended purchaser of the flat. These documents would state whether the title to the property is clear, marketable and free from encumbrance. In other words, it would state whether or not there is any existing mortgage, litigation, condition or claim that could affect the title of the buyer.

If the land under consideration is agricultural land and if one intends to develop the said land for residential, commercial or industrial use, then such agricultural land has to be converted to non-agricultural land, and an NA order obtained from the Collector of the District where the property is located. Along with this, one needs to take the latest receipts evidencing the payment of NA tax.

(To be continued)

Source: www.hdfc.com

This Guidance Note is an attempt to help prospective buyers of properties. It is for the limited purpose of information only. You are advised to consult your advocate/solicitor before undertaking any transaction. This information is meant only to provide a broad overview of property transactions; the concepts and description of documents within this note are only general descriptions. HDFC undertakes no responsibility of determining the applicability of these concepts and documents in each case.