For most families, a property is the largest purchase they will ever make, and a defect in title can cost years of litigation. Legal due diligence means confirming, before you pay, that the seller actually owns what they are selling, that the property is free of claims, and that it can lawfully be used as you intend.

1. Title and chain of documents

Ask for certified copies of the title documents going back at least 30 years. That is the customary period, although older records may be needed where the history is complicated. Check that:

  • each transfer (sale, gift, partition, will, settlement) links cleanly to the next;
  • names, survey numbers, extents and boundaries are consistent across documents;
  • inherited property has a proper succession record, and all legal heirs have joined the sale or released their shares;
  • the seller's identity matches the title holder.

Documents such as an agreement to sell, a general power of attorney or a will do not by themselves transfer ownership. In Suraj Lamp & Industries v. State of Haryana (2011), the Supreme Court held that immovable property is conveyed only by a registered deed of conveyance. Be cautious of "GPA sales".

2. Encumbrance certificate

Get an encumbrance certificate (EC) from the Sub-Registrar's office, or online where the state allows it, for the same 30-year period. It shows registered transactions such as sales, mortgages and leases affecting the property. An EC will not show unregistered charges or pending litigation, so it is necessary but not sufficient.

3. Loans and litigation

  • Ask the seller whether the property is mortgaged. If a bank loan exists, arrange for it to be closed and the original documents released as part of the transaction, with the bank's no-dues letter.
  • Search court records (e-Courts, the High Court and relevant tribunals) for cases involving the property or the seller.
  • Publish a public notice in local newspapers inviting objections. It is a simple step that often brings hidden claims to light.

4. Revenue and municipal records

  • Mutation / khata / pattadar passbook (the name varies by state) should be in the seller's name. In Telangana, land records are on the Bhu Bharati portal. Our Bhu Bharati guide explains how to check them.
  • Property tax, electricity and water bills should be paid up to date.
  • For agricultural land, confirm whether conversion to non-agricultural use is needed and permitted, and whether any ceiling or assigned-land restrictions apply.

5. Approvals for buildings and flats

  • Sanctioned building plan from the competent authority. Compare the actual construction with the plan, since extra floors or deviations can lead to demolition or penalties.
  • Occupancy certificate (or completion certificate) for ready-to-move properties.
  • RERA registration for under-construction projects, and the project details on the state RERA website.
  • Land-use / zoning consistent with residential use.
  • In Hyderabad, check on the HMDA lake maps whether the property is in a lake's FTL or buffer zone. Our article on HYDRAA notices explains why.
  • For apartments, a no-objection certificate from the society or association and details of undivided share in the land.

6. The sale deed and registration

  • Stamp duty is paid according to the state's rates, usually on the higher of the agreed price and the government's guideline/circle value. For a property in Telangana, our stamp duty calculator works out the amount.
  • Under the Registration Act, 1908, a sale of immovable property worth ₹100 or more must be registered. The deed should be executed before the Sub-Registrar with two witnesses.
  • Where the price is ₹50 lakh or more, the buyer must deduct TDS at 1% under the Income-tax law and file the required return. Confirm the current requirements when you buy.
  • Pay the consideration through banking channels and record the payment details in the deed.

7. After registration

  • Apply for mutation in your name with the municipal and revenue authorities.
  • Transfer utility connections and the society membership.
  • Keep the original documents safe. Lenders and future buyers will ask for them.

Warning signs

  • The seller cannot produce originals, or gives only photocopies.
  • A price far below market value, or pressure to pay large amounts in cash.
  • Co-owners or heirs who are "not available" to sign.
  • Construction that clearly differs from the sanctioned plan.
  • A project that is not registered under RERA when it should be.

Key takeaways

  • Verify title for at least 30 years and trace every link in the chain.
  • An EC is essential but does not reveal everything. Also search court records and publish a public notice.
  • Ownership passes only through a registered conveyance, not a GPA or agreement to sell.
  • Complete mutation promptly after registration.