š¢ Introduction
Buying property is a dream for many Indians, but it can quickly turn into a nightmare if the property has hidden legal issues, mortgages, or is part of a fraudulent transaction. As many buyers are purchasing immovable property for the first time, they are often unfamiliar with the intricacies, technicalities, and legal provisions involved in such transactions. This guide offers a step-by-step checklist for verifying documents and understanding the legal framework while purchasing a plot, built-up house, builder flat, or high-rise apartment in India.
š 1. Must-Have Documents Before Buying Any Property
|
Document |
Why Itās Important |
|
Title Deed (Registered) |
Proof of ownership and the property’s transfer history should be verified by examining the original documents and checking their genuineness. Read the sale deed carefully to ensure it specifically pertains to the property in question. All registered sale deeds are stamped by the Sub-Registrar of the area where the property is located and include a serial number, Zild number, page numbers, date of registration, and the signature and stamp of the Sub-Registrar. If the sale deed pertains to a property in Uttar Pradesh, it can be verified online through the ‘Sampatti Khoje’ option available on the official website of the Stateās Stamp and Registration Department. Other states may also offer such facilities and should be explored. It is advisable to engage a legal expert to verify the authenticity of the sale deed directly from the Sub-Registrarās office. The lawyer can obtain a certified copy and compare it with the original to ensure all details match correctly. A report by the legal expert or advocate must be obtained in writing, under signature and stamp, for your record and future referenceāespecially if you are planning to take a loan on the property. |
|
Mother Deed |
To ensure a property has a clear and marketable title, it is vital to examine the root documentāthe earliest available legal ownership recordāand trace the chain of ownership up to the present seller. If you are purchasing a property in 2025, and the last sale deed was executed in 2022, you must verify all previous ownership documents going back at least 30 years. This helps ensure: a. Each transfer of ownership was legal and properly documented. b.There are no breaks or disputes in the flow of title. c. The current seller has absolute, legal ownership of the property as per applicable d. These documents, referred to as the āchain of titleā or “flow of title,” must be: e. Authentic and duly registered f. Free from legal defects or litigation g. Clearly showing the movement of ownership from one party to the next h.A clear and verified chain of title gives you confidence that the property is not under dispute and can be safely transferred to your name. |
|
Encumbrance Certificate (30 years) |
Confirms that there are no prior mortgages, charges, or encumbrances. This certificate, issued by the Sub-Registrar based on official records, shows whether the property is free from encumbrances for a specific period. |
|
Nature of the Title |
Clearly identify the nature of the sellerās titleāwhether full ownership, leasehold, occupancy/possessory rights, or allotment by the government. The seller must have the legal right to sell. |
|
Sale Deed Draft |
Draft of the legal contract between buyer and seller. |
|
Khata/Mutation Certificate |
Revenue record that must be scrutinized to confirm the flow of ownership and any change in land use. Also reflects pending disputes or government acquisition status. |
|
Property Tax Receipts |
Ensure no dues are owed to the municipal body and the current ownerās name is correctly mutated in official records. |
|
Occupancy Certificate (OC) |
Required for constructed properties. Confirms lawful construction. |
|
Building Approval Plans |
Verify that the layout and number of floors are as per approval to avoid penalties or demolition. |
|
Completion Certificate |
Confirms the property complies with construction norms. |
|
Physical Visit / Verification |
Must physically verify the property to ensure that: a. The property is clearly demarcated. b. Partition/demarcation is legally valid. c. It has clear legal access. |
|
Verification with Utility Services |
Cross-check with utility documents such as: a. Electricity connection b. Water supply bills c. Other utility bills to help establish rightful possession and identify discrepancies. |
š® 2. 30-Year Title Verification: Your Legal Shield : Under the Limitation Act, 1963, ownership claims and disputes can be legally raised for up to 30 years. Therefore, you must:
- Trace ownership through all sale/gift/inheritance deeds for 30 years
- Ensure no missing links in the chain of title
- Cross-verify with Encumbrance Certificate
- Hire a lawyer for a Title Search Report
Documents to check:
- All sale deeds over 30 years
- Encumbrance Certificate (EC) for 30 years
- Mutation and tax continuity
- No Dues Certificate from previous lender, if any
š 3. CERSAI: Your Key to Hidden Mortgages
CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) allows public search to detect if the property is mortgaged, especially through equitable mortgages not visible in EC.
Steps to check:
1.Ā Ā Ā Ā VisitĀ https://www.cersai.org.in
2.Ā Ā Ā Ā Use Public Search (name/title deed number)
3.Ā Ā Ā Ā Pay nominal fee
4.Ā Ā Ā Ā Download report
Red Flags:
- Active or multiple charges
- Discrepancy in title deed or address
š 4. RERA Verification for Flats and Builder Projects
Use your stateās RERA portalĀ to check:
- Project registration number
- Promoter credentials
- Legal layout and approved plans
- Whether project falls under RERA, and if registered sale agreement format has been used
- Whether the property appears in the list of booked flats/plots uploaded by the
promoter
š° 5. Judging the Right Price: Donāt Fall for Unrealistic Discounts
Circle Rate Check:Ā
- Visit your city/state revenue website
- Compare market price with government-declared circle rate
Market Rate Check:
- Speak to local agents, residents
- Browse sites like 99acres, MagicBricks
- Get an independent valuation
Be Alert:
- Very low price may mean black money, litigation, or encumbrances
- Ask: Why is it priced so low?
- Donāt compromise due diligence for a cheap deal
ā 6. Common Property Frauds in India & How to Avoid Them
|
Fraud Type |
How to Avoid |
|
Double Sale |
Cross-check with EC, visit property, verify with |
|
Forged Documents |
Always verify originals and involve a legal expert |
|
Sale of Mortgaged Property |
Check CERSAI, get No Dues Certificate |
|
Illegal Construction |
Verify building plan and OC |
|
Fake Power of Attorney |
Confirm registration and authority of attorney holder |
š 7. Take a Loan Even if You Don’t Need One : Even if you can pay fully, consider taking a small home loan:
Why it helps:
- Banks conduct strict due diligence
- Legal checks by bankās team ensure extra layer of protection
- You can repay early if needed
š®āāļø 8. Final Tips Before You Buy
- Engage – a real estate lawyer
- Check – for ongoing court disputes
- Ensure – seller’s name is on property tax and mutation records
- Use – only registered sale deed
- Register and take possession simultaneously
- Get agreement witnessed and recorded
ā Conclusion :
Buying property is a huge financial and emotional investment. With rising cases of fraud, being informed is your best protection. This guide, along with CERSAI, RERA, circle rate verification, and possibly involving a bank loan, will help you make a safe, informed, and legally sound decision.
ā ļøĀ Disclaimer
This article is intended for general informational purposes only and does not constitute legal advice. Property laws and procedures may vary across states and specific cases. Readers are advised to
consult a qualified legal professional or property law expert before making any real estate decisions.
Useful Information.
Essential pre read for purchase of property. Good
Good information, helpful, while entering in property related transactions.