Buying a property is one of the biggest financial decisions you’ll ever make. Whether it’s your dream home or an investment property, it’s essential to do thorough due diligence before purchase. Here’s a comprehensive guide on the things to check before buying a property to ensure a safe and smart investment.
Tavle of Contents
- Verify the Property Title and Ownership
- Check the Legal Documentation
- Inspect the Encumbrance Certificate
- Confirm Approved Building Plans and Layout
- Ensure RERA Registration (For New Projects)
- Evaluate the Property’s Market Value
- Analyze Location and Neighborhood
- Conduct a Physical Property Inspection
- Review Tax and Utility Bill Records
- Understand the Sale Agreement in Detail
- Check Home Loan Eligibility and Financing Options
- Complete the Registration and Stamp Duty Process
Verify the Property Title and Ownership
Before purchasing any property, it’s crucial to confirm that the seller has a clear and marketable title. This ensures that the property is legally owned and there are no disputes or claims against it.
Key points to check:
- Ask for the original title deed
- Verify ownership through the local land records office
- Ensure there are no co-owners or heirs with legal rights
- Check for pending litigations or legal restrictions
Engage a real estate lawyer to conduct a title search if necessary.
Check the Legal Documentation
Proper documentation is the foundation of a safe property transaction. Every document should be genuine, updated, and legally valid.
Documents to review:
- Sale deed (most important legal proof of sale)
- Previous sale agreements or conveyance deeds
- Mother deed (traces ownership history)
- Property tax receipts
- Khata certificate/Extract (for Indian properties)
- Land use certificate (to ensure its approved for residential or commercial use)
These documents help you ensure that the property is not built on unauthorized or restricted land.
Inspect the Encumbrance Certificate
An Encumbrance Certificate (EC) shows whether the property is free from any legal or financial liabilities, such as loans, mortgages, or court attachments.
Why it’s important:
- Confirms that the property has no outstanding dues
- Ensures there are no third-party claims
- Required by banks before approving home loans
You can obtain the EC from the sub-registrar’s office for a specified period, usually the last 10–15 years.
Confirm Approved Building Plans and Layout
Always check if the construction is approved by the local development authority. Illegal or unauthorized buildings can be penalized or demolished.
Check for:
- Sanctioned building plan
- Layout approvals for plots
- Floor area ratio (FAR) compliance
- Zoning regulations
Avoid properties that deviate from approved plans, especially if you’re buying in a gated community or apartment complex.
Ensure RERA Registration (For New Projects)
For new or under-construction properties in India, verify if the project is registered under RERA (Real Estate Regulatory Authority).
Why it matters:
- Guarantees transparency and timely possession
- Protects against fraudulent developers
- Gives you access to key project details like approvals, delivery timelines, and complaints
Visit the official state RERA website to verify the registration number.
Evaluate the Property’s Market Value
Knowing the real market value helps you avoid overpaying and gives you leverage in price negotiations.
What to do:
- Compare similar properties in the area
- Consult a certified property valuer
- Use online real estate platforms to estimate average price per sq. ft.
- Understand future appreciation potential
This step is especially important if you’re planning to take a home loan, as banks will do their own valuation too.
Analyze Location and Neighborhood
The location of the property affects your lifestyle and its resale value.
Key location factors to consider:
- Proximity to schools, hospitals, markets, and transport
- Neighborhood safety and cleanliness
- Availability of basic amenities (water, electricity, internet)
- Future infrastructure projects (e.g., metro lines, highways)
A good location ensures better livability and higher return on investment.
Conduct a Physical Property Inspection
Don’t skip a thorough site visit to inspect the property physically.
What to inspect:
- Structural integrity (cracks, leaks, dampness)
- Plumbing, drainage, and electrical fittings
- Quality of construction material
- Parking area, common amenities (for apartments)
This helps avoid future repair costs and ensures the property is ready for occupancy.
Review Tax and Utility Bill Records
Always ask for up-to-date payment receipts for property tax, water, electricity, and maintenance (if applicable).
Why it’s crucial:
- Confirms there are no outstanding dues
- Avoids any legal complications or penalties
- Some authorities require a No Dues Certificate
Check with the municipal corporation or housing society for confirmation.
Understand the Sale Agreement in Detail
The sale agreement outlines the terms and conditions of the deal, read it carefully before signing.
Must-have clauses:
- Total price and payment terms
- Possession date and penalty for delays
- Refund and cancellation policy
- Responsibilities of both buyer and seller
Have your legal advisor review the agreement to avoid hidden terms.
Check Home Loan Eligibility and Financing Options
If you’re planning to take a home loan, evaluate your loan eligibility and research financing options.
What to check:
- Your CIBIL/credit score
- Interest rates and processing fees
- Loan tenure and EMI affordability
- Property eligibility (not all properties are loan-approved)
Getting a pre-approved loan can speed up the buying process.
Complete the Registration and Stamp Duty Process
The final step is to legally register the property in your name by paying stamp duty and registration charges.
Steps involved:
- Pay applicable stamp duty (varies by state)
- Register the property at the sub-registrar’s office
- Get the registered sale deed with your name on record
This officially completes your ownership and gives you legal possession of the property.
Conclusion
A thorough inspection of the sample apartment is always an important method to ensure the right choice. Every aspect and functionality of model apartments influences the home buyer’s decision. So, take your time to evaluate the main factors. Make an informed choice by considering a sample apartment inspection checklist.
More Information
Stay updated on the latest developments in the real estate industry by following the openplot information.
Our platform offers valuable insights and updates, along with informative articles and market reports. Openplot.com helps find or sell a home, which is a significant milestone.
Frequently Asked Questions
Q. Why is verifying the title deed important before buying property?
A. The title deed confirms legal ownership. A clear title ensures the seller has the right to sell and protects you from future disputes.
Q. What is an encumbrance certificate and where can I get it?
A. An encumbrance certificate shows if the property has any legal or financial liabilities. You can get it from the local sub-registrar’s office.
Q. Is RERA registration mandatory for all properties?
A. RERA registration is mandatory for new and ongoing real estate projects in India, but not for resale properties. It ensures transparency and buyer protection.
Q. How can I check if a property is approved by local authorities?
A. Ask for the building approval plan and verify it with the local municipal or development authority. Avoid properties built without approval.
Q. What documents should I ask for when buying a resale property?
A. Essential documents include the sale deed, previous ownership documents, encumbrance certificate, tax receipts, and utility bill proofs.