Think twice before buying a property Don’t be prey of lucrative fraudulent schemes because buying a property is one of the most important financial decisions of your life. A purchaser must carry out proper legal and financial due diligence before finalizing any deal to avoid future disputes, fraud, or financial loss.
Basic Precautions Before Buying Any Property
1. Verify Ownership
Check whether the seller is the actual and lawful owner of the property. Review the title documents and ownership chain for at least the last 30 years.
2. Check Encumbrances
Ensure the property is free from loans, mortgages, legal disputes, or third-party claims.
3. Verify Approvals and Permissions
Confirm that the property has all necessary approvals from local authorities, including sanctioned building plans and completion certificates and occupancy certificate where applicable.
4. Inspect Original Documents
Always inspect original title deeds, sale deeds, mutation records, tax receipts, and identity proof of the seller.
5. Execute Proper Sale Deed
The sale deed should be legally drafted, properly stamped, and registered before the Sub-Registrar.
Precautions in Village Areas
Property transactions in village or rural areas require additional caution because records may not always be digitized or updated.
• Verify Jamabandi / Khatauni / Khasra records
• Check mutation entries in revenue records
• Confirm agricultural land status
• Verify whether the land falls under government acquisition or common village land or Garm Sabha land
• Ensure there are no disputes among family members or co-sharers
• If agricultural land is being converted for residential or commercial use, check the CLU (Change of Land Use) approval
Precautions in Urban Areas
Urban property purchases require verification of municipal and development authority approvals.
• Check approved building plan
• Verify RERA registration (if applicable)
• Ensure occupancy/completion certificate is available
• Confirm property tax and utility bills are cleared
• Verify whether the flat or property is not mortgaged with a bank or with NBFC
• Check society NOC and transfer permissions in case of society flat
FAQs
How to Check Ownership Chain
A purchaser should verify the chain of ownership through:
• Previous sale deeds
• Gift deeds or partition deed
• Revenue records/ Mutation records
• Registry records from Sub-Registrar office
The ownership chain should clearly establish uninterrupted and lawful transfer of title from one owner to another.
How to Check Loan or Mortgage Details of Property
A purchaser should inspect
• CERSAI records (Central Registry of Securitisation Asset Reconstruction and Security Interest of India)
• Bank NOC if any loan existed
Loan or mortgage details can be checked through the official CERSAI portal:
What is an Encumbrance Certificate?
An Encumbrance Certificate (EC) is a legal document showing financial and legal liabilities attached to a property during a specific period.
It generally includes:
• Sale transactions/ gift deeds/ partition deeds/ release deeds
• Mortgages and loans
• Lease transactions
• Court attachments (if recorded)
An EC helps confirm whether the property is free from encumbrances and marketable.
Conclusion
Proper legal verification protects a purchaser from future litigation and financial risks. Legal firms assists purchasers in legal checks before purchasing a property and also helps in drafting a legally sound sale deed . Professional legal guidance at Legal firms ensures a safe and legally secure property transaction.