Bakul Kunja

Why checking property papers is important

July 16, 2020 9:21 pm Published by

All inexperienced new property buyers are bound by one common scenario – mixed feelings of excitement and nervousness. The checking and verification of property papers in India is a very important step in the real estate process. Most of the buyers don’t check and acquire complete property documents at the time of purchase. These people faced legal trouble at the time of sale. Another problem linked to property papers is that buyer or a seller is not aware of why a specific property document is required, how to check them, whether it is required in original or not etc.

Does that mean it has to be a distressing experience that must be sustained? Absolutely not! With a little prior research and preparation, you can make the buying process a lot smoother and less time-consuming.

At Poddar Groups, we understand how crucial for you to get aware of the right guidance regarding property papers. Let’s take a look at the list of documents you will require to check all the legal aspects of property purchase right.

List of important property documents in India for investors

  1. Sale Agreement
  2. Mother Deed
  3. Chain Deed/Link Deed
  4. BL&LRO Mutation and Conversion( Where Land revenue is applicable, example West Bengal)
  5. Municipal Tax e.g. KMC BMC etc.
  6. Municipal Mutation
  7. Sanction plan
  8. Power of Attorney
  9. Development Agreement
  10. Trade License

Sale Agreement

This document demonstrates all kinds of information about the property, including the terms and conditions, the payment plan, the possession date, the details about the common areas, the specifications, and facilities, etc. This document has to be generated in original for land purchase and acquiring a home loan.

Generally, it’s a property paper that proceeds a sale deed and in such cases registration is not required. Sale Agreement will not confer any right on the property. To get the paperwork done quickly, buyers often miss the essential clauses that sellers and developers slip into a sale agreement. “The sale agreement is not a standard document. There’s a possibility to contain specific points in it and you could land in a soup if you miss them.

Mother Deed & Chain Deed/Link Deed

Deeds are the legal documents that transfer title from one person to another. So, the different kinds of Title Deeds can be namely – Deed of Partition, Gift Deed, Sale deed/Purchase Deed, Release deed, and Settlement Deed, etc.

If there were multiple transactions processed on the relevant property then you need to check all the Chain/Link Deeds and Mother Deed as well.

In the area of real estate, tracing the proprietorship of a land/property is very important, especially when you are buying or selling it. Mother deed is a legal document that shows you a complete record of property transaction and history of the owners’ name since possession changes each time while a property is purchased or sold. This document will also assist you recognize the original owner of the property that you are procuring.

West Bengal Land Mutation (BL&LRO)

Mutation of land or property is the change of title proprietorship from one person to another person when a property is purchased, sold, or transferred. By mutating a land or property, the new owner gets the title of the property recorded on his/her name in the land revenue department, and the government of West Bengal can charge property tax from the rightful owner.

For every property there are two different kind of tax, one is levied by the local municipality and the other is levied by the concerned BL&LRO department.

BL&LRO recording requires property situated in panchayat while mutation is required for property situated in the Municipality area.

Building the Sanction Plan

Generally, to construct or renovate the building, a landowner or a developer has to reach out to the civic authority concerned and obtain approval for the plan. When the approval is allowed, this building plan is known as a sanctioned plan and the landowner has the right to go ahead with the construction.

It is necessary for the owner or builder to strictly implement the sanctioned plan. In case of any violation, the authorities have the right to penalize the owner, including by destroying the building. As per the Real Estate (Regulation and Development) Act, 2016, a sanctioned plan holds approval to structural designs and may also contain environment clearances by a competent authority.

Municipal Mutation

Once you have finished with a real estate transaction and registered the property in your name, it is essential for you to also get a mutation of the property done in government records. What is property mutation, and why is it important?

The municipal body in a city keeps a history of property ownership transfers to fix property tax payment liabilities. This is true of transfer of all sorts of immovable assets, such as a flat, land, shop, individual home, etc. The mutation is a way to identify that. Mutation of land or property explores that a property has been transferred from one person to another, and it also helps authorities in fixing taxpayers’ responsibility. Although not a legal document, it will be crucial if you wanna sell your property in the future.

Municipal Mutation is two types:

  1. Before transfer in name to the seller Mutation must be in the name of the entire property.
  2. After purchase Mutation will be in the name of the purchaser of that specific flat or apartment Not the entire project.

The mutation of property in Hindi is called Daakhil-Kharij.

General Power of Attorney:

On the occasion of a property transaction, the Power of Attorney is one of the most important real estate papers that provides an individual the authority to sell, rent or purchase a property on behalf of someone else. However, this document is also required to be verified and registered by a legal entity. It is an important paper and must be in its original form.

Municipal Tax e.g. KMC BMC etc.

In India municipal corporations or urban local bodies (ULB’s) levy two types of taxes viz. Property tax and Professional tax. Property tax is an annual amount paid by a landowner to the municipal corporation of his/her area. The municipal corporation assesses and imposes the property tax annually or semi-annually. The amount is generally based on construction, area, property size, etc. It also compromises water tax, lighting tax, and drainage tax. Property tax is the most vital tax levied by ULB’s in India; most cities are greatly dependent on property tax revenue for their budget.

Property tax in Mumbai

The BMC uses the Capital Value System (CVS) to calculate property tax. The property tax is calculated as follows: The Capital value of property x Current property tax rate (%) x Weight for user category The Maharashtra cabinet, on March 8, 2019, approved a proposal to exempt residential properties up to 500 sq ft, within the Mumbai municipal area limits, from property tax.

Property tax in Kolkata

In March 2017, the new Unit Area Assessment (UAA) system for property tax calculation, was passed in the Kolkata Municipal Corporation (KMC). The property tax calculation utilizes the concept of multiplicative factors (MFs), to account for the several critical differences in houses within the same block. The annual property tax under the UAA system is calculated, using the following formula: Annual tax = Base Unit Area Value x Location MF value x Covered space/Land area x Usage MF value x Structure MF value x Age MF value x Occupancy MF value x Rate of tax (including HB tax) (Note: HB tax refers to Howrah Bridge tax, which applies to properties lying in specific wards.)

Importance of Property Mutation

Property mutation (transfer of title) is a mandatory process in all legal transactions involving the property. By mutating the property, the new owner gets the revenue records on his name. Once the property is mutated, such details will be updated in the revenue records maintained by civic bodies like Municipalities, Panchayat, or Municipal Corporations.

  1. In the time of disputes on land, then land records will be useful as a legal document.
  2. A mutation document is required to fix the property tax payment liabilities.
  3. Mutation property is used to prove the ownership of a particular land.
  4. For selling a property, the landowner has to submit the mutation certificate to the buyer for verification.
  5. If a property is jointly owned, then the mutation certificate will be in all names of the co- owners.

What is the development agreement?

A development agreement is used to describe multiple types of agreement. It is a generic term used to discover an agreement between the land-owning entity and a development entity that manages the development of a parcel of land. Unlike construction contracts, leases and contracts of sale, there are no standard development agreements. For example, Standards Australia does not publish an Australian Standard development agreement. A development agreement provides assurances to the developer that the development regulations that apply to the project will not change during the term of the agreement.

Trade License

The common definition of trade license is a bit straight forward and somehow legalistic. A trade license documents permit you the right to operate your business in a specific area. It does not refer to any type of property ownership and does not allow to do any other business than for it is issued.

In the last 40 years, trade license is introduced in India and is regulated by the state government through municipal corporation acts. It is a way to regulate and carry out any form of business from a particular locality.

The main goal of trade license is restricted to people to control business location from executing any kind of business from their residential areas by maintaining the business environment and locality environment.


When buying new land or property, legal due diligence is essential to avoid facing entangled in legal issues later. Whenever somebody seeks to purchase a property, it is essential for them to research, study, and check out all the property papers before deciding to buy. We must have a skeptical mind while checking papers so that in future the owner doesn’t get into legal trouble because of improper documents.

Poddar Groups is one of the leading real estate supporters in Kolkata, India. We, at Poddar Groups, promote plots, individual villas & vacant lands in and around Kolkata. We empower you to execute your answers quicker and less expensive than your present alternatives. Finding reasonable flats in South Kolkata is not so hard if you proceed in the right way. We can provide you assistance in finding the proper solution for you. Our interesting way to deal with quality and unwavering quality is an aftereffect of energy for perfection.

Categorised in:

This post was written by admin

Comments are closed here.