Essential Documents Required For Resale Property Purchase

In the ever-evolving landscape of real estate, resale property purchases have become increasingly popular due to the potential for cost savings and immediate availability. A resale property purchase refers to acquiring a pre-owned property from an existing owner rather than buying a newly constructed one. In this transaction, the buyer becomes the new owner, inheriting the property’s age, condition, and any existing modifications. The process involves careful examination of legal documents, ensuring compliance with regulations, and assessing the property’s overall viability. 


As a loan Direct Selling Agent (DSA), specifically a loan agent, one of the crucial responsibilities you will have is to guide your clients through the complex process of acquiring a resale property. One of the key aspects of a successful resale property purchase is ensuring that all necessary documents are in order. In this guide, we will delve into the essential documents required for resale property purchases, equipping home loan agents or DSAs with the knowledge to facilitate smooth transactions for their clients.

Essential Documents Required For Purchasing Resale Property

The following are the most important documents that need to be collected to ensure a smooth purchase of resale property: 

Title Deed/Ownership Document

The cornerstone of any property transaction is the title deed or ownership document. This legal document establishes the rightful owner of the property and provides details about the property’s dimensions, location, and boundaries. As a home loan agent or DSA specializing in home loans, it is imperative to scrutinize this document to confirm that the seller has the legal right to sell the property. Any discrepancies in the title deed can lead to complications during the loan approval process.

Sale Deed

The sale deed is a crucial document that formally transfers ownership from the seller to the buyer. It includes details such as the sale price, payment terms, and any other conditions agreed upon by both agents should ensure that the sale deed is executed on a non-judicial stamp paper of the requisite value and is registered at the local sub-registrar office. A thorough examination of the sale deed helps prevent legal complications and ensures a transparent transaction.


Encumbrance Certificate

An encumbrance certificate is a record of all transactions related to the property, including mortgages and legal claims. Home loan agents should request a minimum of 30 years’ worth of encumbrance certificates to ensure there are no outstanding dues or legal disputes attached to the property. Lenders often require a clean encumbrance certificate as part of the loan application process, making it a crucial document for resale property purchases.

Property Tax Receipts

Property tax receipts serve as evidence that the seller has paid all outstanding property taxes. Home loan agents should verify that the property tax payments are up-to-date to avoid any legal entanglements for the buyer. Additionally, these receipts are essential for the loan approval process, as lenders often scrutinize the property’s tax history before granting loans.

Occupancy Certificate

For resale properties, particularly those in multi-story buildings or housing complexes, an occupancy certificate is vital. This document, issued by the local municipal authorities, certifies that the construction complies with the approved plans and that the property is fit for occupation. Home loan agents should ensure that the seller provides a valid occupancy certificate, as it may impact the property’s eligibility for financing.

Completion Certificate

Similar to the occupancy certificate, the completion certificate is crucial for confirming that the construction adheres to the approved plans. Home loan agents should scrutinize this document to ensure that the property is in compliance with local building codes and regulations. Lenders may require the completion certificate during the loan application process to assess the property’s structural integrity.

Khata Certificate and Extract

In many Indian states, a Khata certificate and extract are essential documents for property transactions. The Khata is a legal document that establishes the property owner’s details for the purpose of property tax assessment. Home loan agents should verify the seller’s Khata details and ensure that the Khata extract is up to date. These documents are often required by lenders for loan approval.

Building Approval Plan

For properties in multi-story buildings or housing complexes, the building approval plan is crucial. Home loan agents should review this document to confirm that the construction has the necessary approvals from the local municipal authorities. Lenders may request a copy of the building approval plan to assess the property’s legality and compliance with building regulations.


Power of Attorney (if applicable)

In some cases, the seller may authorize a third party through a power of attorney to carry out the property transaction on their behalf. Home loan agents should carefully examine the power of attorney document to ensure its validity and scope. Additionally, lenders may require specific documentation related to the power of attorney to process the loan application smoothly.

Society Documents (for apartments or flats)

If the resale property is part of a housing society or apartment complex, DSA should obtain and review the society’s documents. This includes the society registration certificate, bylaws, and minutes of meetings. Understanding the society’s financial health and legal standing is crucial for both the buyer and the lender.


As a home loan DSA facilitating resale property transactions, a thorough understanding of the essential documents is paramount. By meticulously reviewing these documents, home loan agents can ensure that their clients make informed decisions and navigate the loan approval process with confidence. The intricate nature of resale property purchases requires attention to detail, and home loan DSAs who equip themselves with the knowledge of these essential documents will undoubtedly contribute to successful and hassle-free transactions for their clients.


Andromeda Loans is among the largest of India’s loan distribution networks with over 25,000 distribution partners spread across the country. We have over three decades of experience in the financial industry and are known for combining this expertise with the latest in digital technology. Becoming an Andromeda DSA offers a substantial chance of success in the field, especially since guidance from our experienced experts is guaranteed. Follow us to know more!