Property · 9 min read
Buying property in India — title due-diligence to registration
A complete checklist for residential / commercial property purchase — title chain, encumbrances, sanctioned plans, stamp duty, registration and post-registration mutation.
A property purchase is one of the largest financial commitments a person makes. The single biggest risk-mitigant is rigorous title due-diligence before payment of any substantial consideration.
Stamp duty and registration are governed by the Indian Stamp Act, 1899 (with State amendments) and the Registration Act, 1908.
Who this guide helps
Is this for you?
- Individuals purchasing residential property
- Investors purchasing commercial / plotted property
- Companies acquiring real estate for offices or factories
Governing law
Legal basis
- Transfer of Property Act, 1882
- Registration Act, 1908
- Indian Stamp Act, 1899 (with State amendments)
- Real Estate (Regulation and Development) Act, 2016 (for under-construction)
Step by step
The procedure
- 01
Title chain examination (30 years)
Trace ownership through registered conveyances over at least 30 years. Verify successions, partitions, gifts, inheritances and corporate transfers.
- 02
Encumbrance and litigation search
Obtain Encumbrance Certificate (where the State maintains it). Search court records for pending litigation. Verify with the bank for any registered mortgage / equitable mortgage.
- 03
Approvals and physical verification
Examine sanctioned building plan, occupancy / completion certificates, and conformity with master plan / zoning. Physically verify dimensions and possession.
- 04
Title report and Agreement to Sell
Obtain a written title-search opinion from counsel. Negotiate and execute an Agreement to Sell with token money, milestones and obligations.
- 05
Stamp duty and registration
Pay applicable stamp duty (varies by State and gender / use) and register the conveyance / sale deed with the Sub-Registrar within whose jurisdiction the property lies.
- 06
Post-registration
Apply for mutation in revenue / municipal records. Update electricity, water, society records. Preserve originals safely.
Checklist
Documents to keep ready
- Mother deed and complete chain of title
- Encumbrance certificate; latest tax receipts
- Sanctioned plan, OC / CC, society / RWA NoC
- Identity & address proof of all parties; PAN; bank details
- Loan sanction letter (if financed)
What to expect
Indicative timeline
- Due-diligence + AOS: 2–4 weeks
- Stamping & registration: 1–2 days
- Mutation: 1–3 months
Money matters
Cost components
- Stamp duty — varies by State (often 5–7% of consideration)
- Registration fee — typically 1%
- Counsel fee for due-diligence and drafting
Indicative only. Actual outflow depends on the forum, valuation and scope of work.
Avoid these
Common pitfalls
- Skipping the 30-year chain examination
- Relying on photocopies — always inspect originals
- Paying token without an Agreement to Sell
- Not verifying the seller's Power of Attorney chain (where seller is not the original owner)
From the chambers
Practical tips
- Insist on indemnity clauses and retention against future title claims
- Verify GST / TDS implications under Section 194-IA where applicable
Questions we hear
Frequently asked
Is a registered Power of Attorney enough to transfer title?
No. Suraj Lamp & Industries (2012) clarifies that GPA / SA / Will sales are not transfers; only a registered conveyance transfers title.
Should under-construction property be RERA-registered?
Yes — projects above the prescribed threshold must be registered with the State RERA. Verify the registration before payment.
This guide is general information, not legal advice. The applicable law and procedure may vary depending on the facts of your matter and amendments enacted from time to time.