Legal Checklist for Buying a Property-1

Important legal checklist for buying a property

Investing in a property is not an easy task as it involves a hefty amount of your capital and even a slightest mistake during the process can land you in troubled waters. But don’t worry we have made it simple for you. This blog will help you to identify real estate pitfalls you might encounter while buying a new property.

Here is the list of all the necessary things you need to check on before buying a property:

1. Property documents

The first and foremost thing you need to do as a buyer is to check all the necessary property documents in order to verify the existence of the title with the seller, the nature of the title, and its marketability. The seller can be requested to provide the following documentation/information:

  • Title document: This includes government grant order, transfer certificate, sale deed, gift deed, will etc., showing the transfer of ownership over the years, ending in the seller’s vesting of goods.
  • Title’s nature: Check if the property is freehold, leasehold or a government accommodation.
  • In case the seller is claiming of development rights to the property, it will be better to ascertain the development agreement and power of attorney executed by the owners in favour of the seller.
  • Make sure all the title documents are being duly stamped and registered at the office with the Sub-Registrar of assurances.
  • Information about pending or past litigation.
  • Availability of seller’s original documents.

2. Know your seller

Just like verifying the property documents, it is important for a buyer to verify the identity of the seller as well. You can ask for the following information:

  • Residence status and nationality of the seller. whether the consent of government authorities is required for the sale.
  • In case of property held jointly, verify the identity of all the owners.
  • It is mandatory to obtain the constitution documents of the entity to confirm its ability to own and transfer the property. Besides this also make sure the person executing and registering the sale deed is duly authorised.
  • Orders from the competent court, permitting sale of the property and appointing a guardian, in case it is held by a minor or person of unsound mind.
  • Most importantly, check all the documents that will typically help you to ascertain the seller’s identity, including Aadhaar card, PAN card, passport, IT returns, salary certificates etc.

3. Land use

Please refer to the Master Plan of your respective area and identify the prospective property use within that Plan. After that, you need to ask the owner if they have paid all the applicable charges pertaining to the land use and obtain the receipts for the same.

4. Occupancy certificate

Well, this is another necessary document for the buyer to obtain, prior to conveying the property. Owning the property, without obtaining the occupancy certificate, can expose the buyer to penalty under the applicable building bye-laws. Moreover, the property can even be demolished by the authorities.

5. Property tax receipts

Next on the list is, checking the property tax receipts to ensure whether the seller has paid all the taxes accruing on the property or not. Remember, once the property is transferred in your name, you will be responsible for all the due payments, utility and other expenses.

6. Encumbrance certificate

Encumbrance certificate shows that the property is not mortgaged. If the property is mortgaged and there are pending dues, the owner will be liable to clear them before selling the property.

7. Visit the location and survey of the property

Being a buyer, it is crucial for you to take on a physical survey of the property and examine its extent and measurement. In the case of a land, it is advisable to identify and demarcate the boundaries.

8. Compliance with RERA

The Real Estate (Regulation and Development) Act 2016 mandates that the developers should register their projects with the authority constituted under this Act. So, if you are looking to buy a property, identify whether it has been registered with the authority or not.

9. Bank statements in case of loan outstanding

If there is any loan outstanding on the property you are interested in, it is necessary to check some documents, before signing the deal. It is advisable to obtain the assertions identifying with the advance. In this way, everything will be crystal clear.


Few tips for the buyers:

  • Never agree to sign on the dotted line, unless you have done your own research.
  • Even if your friend or any relative recommends you the name of an agent, always verify their RERA ID and registration.
  • Never get agreed to offer black money, in lieu of tax discounts.
  • Do not sell or buying a property on someone else’s behalf.

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