Documents of the project

IT is necessary to check the following documents pertaining to the project where one intends purchasing the flat:

*Development agreement with the land-owner if the developer is not the owner of the property, and the Power of Attorney executed by the land-owner in favour of their developer.

*Approved building plans.

*Commencement certificate

*Completion/Occupation certificate.

*The builder enters into the Development Agreement with the land-owner. It contains details regarding the terms and conditions on which the landowner has permitted development of his property. This is where the land-owner engages a third party (that is, the developer) to develop and build on their plot of land. This agreement is generally accompanied by a Power of Attorney in favour of the developer.

*Approved building plans need to be checked necessarily. The plans must be approved by the Municipal Corporation/Town Planning authority or other concerned authorities such as CIDCO, MHADA, HUDCO, Gram Panchayat, and so on, as applicable depending on the project's location.

*Commencement certificate is given by the Municipal Corporation permitting the developer to begin construction. This is done once the plans have been approved.

*Completion/occupation certificate is given by the concerned authorities to the developer once the said building is complete and fit for occupation.

Under the Maharashtra Ownership Flats Act, 1963, a promoter who intends to construct a building of flats has to enter into a written `Agreement for Sale' with each buyer. It is also provided that the agreement should contain the particulars, and also annex to such agreement the prescribed documents or the copies thereof.

(To be continued)

(Source: www.hdfc.com.)

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