legal checklist before buying a property

Buying a property is one of the biggest financial decisions you'll ever make. While location, pricing, and amenities matter, legal due diligence is even more important. Ignoring legal aspects can lead to disputes, fraud, or even loss of ownership. Whether you are buying a flat, plot, or commercial space, checking the legality of the property is non-negotiable.

cedriccc

Jul 15, 2025 - 17:15

This blog provides a comprehensive legal checklist before buying a property, helping you make an informed and risk-free decision.

1. Verify the Title Deed

The title deed confirms the ownership of the property. Ensure the seller has a clear and marketable title to the property.

Ask for the original title deed.
Cross-check ownership details with the land records office.
Make sure the title is not under any dispute.

Tip: Hire a property lawyer to review all documents thoroughly.

2. Check Encumbrance Certificate

An Encumbrance Certificate (EC) shows whether the property has any outstanding loans, mortgages, or legal dues.

Obtain the EC from the sub-registrar’s office.
Ensure it is “nil” or free from any encumbrances.
Request for EC for the past 10–15 years.

3. Examine the Sale Deed

The sale deed is proof of sale between the buyer and seller. It's registered after the final payment is made.

Ensure the sale deed includes correct details (name, area, boundaries, etc.).
Make sure the seller is legally allowed to sell.
Verify if the previous sale deed was genuine and properly registered.

4. Verify Land Use Certificate

Especially important for plots and agricultural land, the land use certificate confirms if the property is legally permitted for residential or commercial construction.

Check zoning regulations with the local municipal authority.
Ensure the land is converted for non-agricultural use if necessary.

5. Obtain Building Plan Approvals

If you are buying a flat or house, make sure the building plan is approved by the local development authority.

The construction must align with sanctioned plans.
Deviations from approved plans may lead to legal action or demolition.

6. RERA Registration (if applicable)

Under the Real Estate Regulatory Authority (RERA) Act, all new projects must be registered with RERA.

Visit your state RERA portal to check registration.
Review builder reputation, project status, and legal standing.
This offers buyer protection and legal transparency.

7. Check Property Tax Receipts

Ask the seller for the latest property tax payment receipts.

Ensure there are no pending dues.
Confirm that taxes have been paid till date.

8. Verify Occupancy Certificate (OC)

An Occupancy Certificate is issued by local authorities after construction is complete and the building is fit for use.

Without OC, water and electricity connections can be denied.
Lack of OC can lead to legal complications in resale.

9. Review No Objection Certificates (NOCs)

Obtain relevant No Objection Certificates from authorities like:

Fire department
Pollution control board
Environmental authority
Electricity and water boards

These ensure that the project is compliant with safety and regulatory norms.

10. Check for Litigation or Disputes

Run a background check on the property to ensure it’s free from legal disputes.

You can search court databases or take help from a property lawyer.
Avoid properties involved in ongoing litigation.

11. Confirm Seller Identity and Authority

Verify the seller’s identity with government-issued documents (Aadhaar, PAN).

If it's jointly owned, consent from all owners is required.
If a power of attorney is involved, ensure it's registered and valid.

12. Verify Loan & Bank Approvals

If you’re availing a home loan, make sure the project is approved by reputed banks.

Banks conduct their own legal due diligence.
This gives an extra layer of security for your investment.

Conclusion

Buying a property is more than just a financial decision—it’s a legal responsibility. Ensuring all legal documents and approvals are in place protects you from future troubles. Always consult a real estate lawyer before closing the deal.