Buying property in India requires careful due diligence

1. Verify Property Title and Ownership

Title Search: Ensure the seller has a clear title to the property and is the legal owner.

Encumbrance Certificate (EC): Obtain an EC from the sub-registrar’s office to confirm there are no pending mortgages, liens, or disputes.

Ownership Chain: Check the ownership history for at least the last 15–30 years.

2. Check Land Use and Zoning

Verify that the property is approved for the intended use (residential, commercial, or agricultural) as per local zoning laws.

Ensure the land is not under government acquisition or designated as reserved land.

3. Verify Approvals and Permissions

For constructed properties: Check approvals from the municipal corporation, water, electricity, and sewage boards.

For under-construction projects: Ensure the builder has RERA (Real Estate Regulatory Authority) registration and all necessary construction approvals.

4. Examine Legal and Tax Documents

Sale Deed: Confirm the sale deed is registered and valid.

Khata Certificate (or its equivalent): Verify municipal records for ownership and tax purposes.

Tax Receipts: Ensure all property taxes have been paid to date.

5. Confirm Builder/Developer Credibility

Research the developer’s track record, reviews, and past projects.

Verify if the builder has complied with RERA regulations for the specific project.

6. Physical Verification

Visit the property and ensure it matches the description in the documents.

Check for any illegal encroachments or disputes with neighboring properties.

7. Review Loan and Mortgage Details

If you’re taking a loan, ensure the property is pre-approved by the bank for financing.

Check if the property is already mortgaged and, if so, how the release will occur.

8. Legal Due Diligence

Hire a real estate lawyer to scrutinize all documents and validate their authenticity.

9. Check for Litigation

Ensure the property is free from any pending legal cases or disputes.

10. Builder-Buyer Agreement

Carefully review the terms of the agreement, particularly clauses related to possession, penalties for delays, and refund policies.

11. Registration Process

Ensure the property is registered with the local sub-registrar’s office to make the transaction legally valid.

Pay applicable stamp duty and registration charges.

12. Budget Considerations

Account for all costs, including GST (for under-construction properties), stamp duty, registration fees, brokerage, and maintenance charges.

13. Environmental Clearance

For larger projects, verify whether the builder has obtained environmental clearance, if required.

14. Understand the Area Development Plan

Ensure the area has adequate infrastructure like roads, water, electricity, and proximity to essential services.