Why due diligence matters
Most property disputes begin with a document that was never checked. A careful review before you pay any significant amount protects you against defective title, undisclosed loans and unauthorised construction.
Title documents
- Registered sale deed of the seller, and the chain of previous title deeds, ideally covering at least 30 years.
- Encumbrance certificate from the Sub-Registrar showing any mortgage, charge or registered transaction.
- Mutation records in the revenue or municipal records in the seller's name.
- Succession certificate, will or relinquishment deeds where the property was inherited.
Approvals and compliance
- Sanctioned building plan and its conformity with what is actually built.
- Completion or occupancy certificate for a constructed building.
- RERA registration of the project for under-construction property.
- Land use and conversion permissions where agricultural land is involved.
- Latest property tax, electricity and water bills, and a society or association no-dues certificate.
Common pitfalls
An agreement to sell or a power of attorney does not by itself transfer ownership. Title to immovable property passes through a properly stamped sale deed registered under the Registration Act, 1908.
If the property is mortgaged, ensure the lender's no-objection and the release of the charge are part of the transaction.
Before you sign
Insist on original documents for inspection, conduct a physical site visit, and have an advocate run a search at the Sub-Registrar's office. The cost of due diligence is small compared to the cost of litigation.
This article is for general information only and does not constitute legal advice. The law may change and its application depends on the facts of each case. Please consult an advocate about your specific situation.
