Before you pay

Meet the owner in person, at the property, and ask for a government photo ID. Match the name with the papers.

Fake owners and people selling what is not theirs are the commonest scam.

If someone else deals on the owner’s behalf (an agent, a relative, a power-of-attorney holder), ask for the owner’s written authority and call the owner yourself.

A power of attorney is not a sale. The Supreme Court has said property cannot be sold just by power of attorney or an agreement to sell: it needs a registered sale deed.

If the property has several owners (family, heirs, a couple), every co-owner must sign. Ask for the legal-heir papers if the owner has died.

One missing co-owner can undo the whole sale later.

Check that the owner’s PAN and Aadhaar names match the title papers (spelling, father’s or husband’s name, address).

Mismatches need a correction deed or an affidavit before you pay.

If the seller is a company, builder or society, ask for the board resolution and the authorised signatory’s ID.

Ask for the original registered sale deed (not a photocopy) and every earlier deed back to the first owner. A property lawyer should read the whole chain.

Sources commonly advise tracing ownership 30 years back. Registration of a deed on its own does not prove the seller really owned the property.

Get an Encumbrance Certificate from the sub-registrar’s office yourself, not from the seller, for at least 13 to 15 years (30 years is safest).

It lists registered sales, mortgages and charges. Seller-supplied copies can be old or altered.

Check the mutation: the seller’s name should be in the municipal and revenue records (property tax record, khata or khatauni), not only on the deed.

If mutation was never done, the records still show the previous owner. This is a common double-sale trap.

Check the property tax receipts, the latest electricity and water bills, and any society or maintenance no-dues certificate.

Unpaid dues become the buyer’s problem. Bills also show who actually uses the place.

Ask whether the property is inherited, gifted, or bought under a will. Ask for the will’s probate or the gift deed, and check that it was registered.

These routes are legal, but disputes between relatives are common.

Ask whether the property is mortgaged or has ever had a loan. If it has, ask for the lender’s no-objection or closure letter and the original papers back from the bank.

A mortgaged property can be taken back by the bank even after you pay the seller.

Search the Central Registry (CERSAI) and the sub-registrar’s record for charges and mortgages on the property.

The Encumbrance Certificate shows registered charges only; check both.

Search the eCourts portal and the local newspapers (public notices) for cases about the property or the seller’s name. Ask a lawyer to issue a public notice if you are buying something expensive.

A property under a court dispute, attachment or lis pendens can’t be passed on cleanly.

Ask whether the property is under any government notice (acquisition, road widening, demolition, encroachment).

Ask the municipal body or development authority directly.

Confirm the land use in the master plan or zoning record: residential, commercial, agricultural or industrial. It must match what you plan to use it for.

Many buildings stand on agricultural or commercial land that was never converted. Banks refuse loans on them.

For a flat or house: ask for the sanctioned building plan and the Completion or Occupancy Certificate, and compare them with what is actually built.

Extra floors or rooms built without approval can be demolished or fined.

For any project of a builder: check the RERA registration on your state’s RERA website (see links) and read the complaints against the builder.

Projects above the RERA threshold (generally over 500 sq m land or 8 apartments) must be registered. Do not buy from an unregistered one without legal advice.

Ask whether the colony or layout is approved by the development authority. Unapproved colonies can lack water, roads, loans and registration.

Visit in daylight, more than once and at different times. Meet the neighbours and ask about the owner, noise, water and flooding.

Photos can hide what a few visits show.

Measure the carpet area and plot size yourself or with a surveyor and compare with the papers. Ask whether the price is on carpet, built-up or super built-up area.

Area differences are the most common price dispute.

Check the boundaries against the map and the papers. Look for encroachments, disputed walls, shared passages and access roads. Make sure the road to the property is a public or registered one.

Check water, electricity, drainage, gas, internet and parking. Look for damp, cracks and old repairs. For a building, ask an engineer to look at the structure.

Check who is living there. If it is occupied, you need the tenant’s agreement and a date for vacant possession in the sale agreement.

Never pay an advance, token or ‘booking’ amount before you have seen the property, met the owner and checked the papers. Anyone who rushes you with “another buyer is coming” is a warning sign.

Token money paid early is hard to get back, and some sellers use it as leverage.

Pay only by bank transfer, cheque or demand draft to the owner’s own account, and keep every receipt. Do not pay to an agent’s personal wallet or UPI, and do not pay a stranger to “hold” a property.

Income-tax rules ban receiving ₹2 lakh or more in cash for property (Section 269ST). Cash also leaves no proof.

Ask the owner for a written receipt for every payment, with the date, amount, mode, and the property’s details.

On a purchase above ₹50 lakh the buyer must deduct 1% TDS and deposit it with the Income Tax department (Form 26QB). Ask a CA how it applies to your deal.

If you don’t, you can be fined and the seller’s tax record is wrong.

Be careful with prices far below the market. Compare with the circle rate (government minimum value) and with nearby listings.

A very cheap deal usually has a reason: a dispute, a loan, or a fraud.

For a home loan, speak to the bank early. Banks run their own legal and technical check of the property, and a ‘no’ from a bank is a free warning.

Bank checks are not a guarantee of ownership. Still get your own lawyer.

Sign a written agreement to sell on proper stamp paper. List the price, payment schedule, what happens if either side backs out, who clears dues, and the date of handing over.

Register the sale deed at the sub-registrar’s office. Sale of property is not complete until it is registered, and the registration is what gives you a legal record.

Under the Registration Act, a sale of immovable property above ₹100 must be registered.

Pay the stamp duty and registration fee at the rate on your state’s registration website. Rates differ by state, by who buys (women often get a rebate) and by the circle rate. Don’t rely on the seller or agent’s figure.

Under-stating the price to save duty is illegal and can leave you with a weak record.

After registration: get the physical keys and possession, and the original deed, receipts and all earlier papers.

Apply for mutation (dakhil kharij or khata transfer) in the revenue and municipal records in your name straight away.

Until mutation is done, the records show the old owner and loans or resale can be blocked.

Transfer the electricity, water, gas and property tax connections into your name. Take a society membership or no-dues letter if there is one.

Keep scanned and original copies of all papers in a safe place. Keep proof of every payment for tax purposes.