A property purchase is often the largest financial decision of a lifetime. Yet many buyers pay a token amount first and check the documents afterwards. The order should be reversed.
1. Verify the seller and their authority
Confirm that the person selling is the recorded owner, or holds a valid, registered authority to sell. Be especially careful where a power of attorney is used.
2. Trace the chain of title
Ask for the documents by which the property reached the seller: sale deeds, gift deeds, partition deeds, Wills and court orders. A break in the chain is a red flag. It is common practice to examine title for at least the last thirty years.
3. Check encumbrances and disputes
- Obtain an encumbrance certificate to reveal mortgages and registered charges.
- Search court records for pending litigation.
- Check that no bank or third party holds the original documents.
4. Examine land and revenue records
Land records, such as the 7/12 extract and property card in Maharashtra, should match the seller's documents in name, area and land use. Confirm whether the land is agricultural or non-agricultural, and whether any restrictions apply.
5. Approvals and possession
- For new projects, confirm registration under RERA and the sanctioned plan.
- Ask for the commencement and occupancy certificates.
- For society properties, obtain the share certificate and necessary no-objection certificates.
- Check that property tax and utility dues are paid.
6. Document the deal properly
Record the terms in a written agreement to sell, pay stamp duty correctly, register the sale deed, and pay through traceable banking channels. Cash-heavy or undocumented transactions create problems later.
Verify before you pay. It costs far less than litigating afterwards.
Every property is different, and local rules vary. A legal title review before you commit is a small cost set against a very large risk.