Property Buying Guide for India

This guide is for general awareness. Property law in India is largely state-specific, and document names differ across states. Always get a title search and legal opinion from a local advocate before paying money.

Part 1 — The 9 core documents

1. Title Deed (Sale Deed / Conveyance Deed)

What it is: The registered instrument that transferred the property to the current seller. It is the single most important document — it proves the seller owns the property and has the right to sell it.

Check for:

• Seller's name matches their government ID exactly
• Property description (survey number, area, boundaries) matches the physical property
• The deed is registered at the Sub-Registrar's office, not just notarised
• Original is available — not "with the bank" without explanation

Red flag: Seller offers only a photocopy, or produces a Power of Attorney instead of a title deed.

2. Mother Deed / Chain of Title (30 years)

Not in the original list, but arguably as important as #1. This is the unbroken chain of prior transfers showing how the property reached the current owner.

Check for: No missing link in the chain. Every transfer registered. If the property was inherited, look for a will, succession certificate, or legal heir certificate, plus a family tree.

3. Encumbrance Certificate (EC)

What it is: A statement from the Sub-Registrar's office listing every registered transaction on the property for a given period — sales, mortgages, gifts, court attachments.

How to get it: Apply at the Sub-Registrar's office or the state land records portal (Kaveri in Karnataka, TNREGINET in Tamil Nadu, IGRS in Telangana/AP, etc.).

Check for:

• Pull at least 30 years, not the 13-year default
• A "nil encumbrance" EC means no registered charges in that window
• Existing bank mortgage must be closed with a No Dues Certificate + release deed before you buy

Limitation worth knowing: An EC only shows registered transactions. Oral agreements, unregistered tenancies, and pending litigation may not appear.

4. Khata / Property Record Extract

What it is: The local body's record identifying who is liable to pay property tax on the property. The name varies by state:

Karnataka-specific caution: A Khata means the property is fully legal and compliant. B Khata means it is on a separate register for properties with deviations — home loans are harder, building plan approvals are restricted, and resale value suffers.

5. Zoning / Land Use Certificate

What it is: Confirmation from the development authority (BDA, MMRDA, DDA, CMDA, HMDA, etc.) that the plot's permitted use under the Master Plan / Comprehensive Development Plan matches what you intend to do with it.

Check for: Residential plot marked as residential — not as green belt, agricultural zone, industrial zone, road-widening reservation, lake buffer, or CRZ.

Red flag: Land falling in a proposed road alignment or buffer zone. It can look perfectly normal on site.

6. Conversion Certificate (DC Conversion / NA Order)

What it is: The order converting land from agricultural to non-agricultural use, issued by the District Collector or Revenue Department.

When it matters: Any plot that was ever agricultural. Building a house on unconverted agricultural land makes the construction illegal and unregularisable in most states.

Also check: Some states restrict who may buy agricultural land (income caps, farmer-status requirements). If you're an NRI, note that NRIs and OCIs cannot buy agricultural land, plantation property, or farmhouses in India under FEMA.

7. Property Tax Receipts

What it is: Receipts showing tax paid to the municipal body.

Check for:

• Latest receipt, plus the last 3–5 years
• Name on the receipt matches the seller
• Assessed built-up area matches the actual structure — a mismatch suggests unapproved construction
• No arrears (arrears transfer to you, not the seller)

8. RERA Registration

What it is: Registration of the project and the promoter under the Real Estate (Regulation and Development) Act, 2016.

Applies to: Projects over 500 sq m or with more than 8 apartments. Agents must also be RERA-registered.

How to verify: Search the project's RERA number on your state's RERA portal — Maharashtra (MahaRERA), Karnataka, UP, Telangana etc. each maintain their own.

What you get from the portal (free): Approved plans, promised completion date, land title report, quarterly progress updates, and any complaints filed against the promoter. This is one of the highest-value checks you can do in 10 minutes.

Note: RERA doesn't apply to completed projects with an Occupancy Certificate, or to resale flats from an individual owner.

9. Mutation Certificate (Dakhil Kharij)

What it is: The update of the revenue/municipal record to reflect the new owner after a sale.

Two things to check:

1. That the seller's mutation was completed when they bought — if not, the record still shows someone else
2. That you complete your own mutation after registration. Registration transfers ownership; mutation updates the government's record of it. Both are needed.

10. Survey Plan / Sketch & Approved Building Plan

Survey plan: Official map from the Survey Department showing exact boundaries, survey number, and extent. Have a licensed surveyor physically measure the plot against it.

Approved building plan: Sanctioned by the local authority. Compare it to what's actually built. Extra floors, covered setbacks, and enclosed balconies are extremely common deviations and can make the property ineligible for a home loan.

Part 2 — Additional documents by property type

Buying an under-construction flat

• Commencement Certificate (CC)
• Approved building plan and layout plan
• RERA registration and the RERA-prescribed Agreement for Sale
• Allotment letter
• Development agreement / Joint Development Agreement, if the builder doesn't own the land
• Bank list — if major banks have approved the project, it has passed their legal scrutiny too
• Payment schedule linked to construction stages (mandated by RERA — reject lump-sum-upfront demands)

Buying a ready flat

• Occupancy Certificate (OC) — non-negotiable. Without it the building is legally uninhabitable, and water/electricity connections can be revoked.
• Completion Certificate (CC)
• NOCs: fire, lift, water, electricity, pollution board, airport authority if applicable
• Society share certificate and NOC from the housing society
• Maintenance dues clearance

Buying a resale property

• Full chain of title
• Original sale deed of the current owner
• If there was a home loan: bank NOC, loan closure letter, release/reconveyance deed, and confirmation the originals have been released
• Society transfer NOC

Buying a plot

• Layout approval from the development authority
• Release order / release deed if the layout land was ever acquired
• Conversion certificate
• Physical demarcation matching the survey sketch

Part 3 — The buying process, step by step

Part 4 — Money, tax, and compliance

Stamp duty and registration: Set by each state — broadly 4–8% stamp duty plus around 1% registration fee, often with a concession for women buyers. Verify the current rate on your state's registration department website before budgeting.

TDS under Section 194-IA: If the consideration is ₹50 lakh or more, the buyer must deduct 1% TDS and deposit it using Form 26QB, then issue Form 16B to the seller. This is a buyer obligation, and missing it attracts interest and penalty.

If the seller is an NRI: TDS falls under Section 195, at significantly higher rates on the capital gain, and the buyer needs a TAN. Ask the seller for a lower-deduction certificate from the Assessing Officer if they claim a reduced rate. Getting this wrong is expensive — take advice.

GST: Applies to under-construction property (broadly 5%, or 1% for affordable housing, without input tax credit). No GST on a ready property that has received its Occupancy Certificate, or on resale.

Cash limits: Section 269SS/269ST of the Income-tax Act restricts cash in immovable property transactions to ₹20,000. Cash components are also a Benami Act and black-money exposure — for you, not just the seller.

Section 50C / stamp duty value: If the agreement value is below the circle rate / guidance value, the difference can be taxed as income in the buyer's hands under Section 56(2)(x).

Part 5 — Quick red-flag checklist

Part 6 — Where to verify, free and online

Not legal or tax advice. Rates, thresholds, and document names change and vary by state — confirm current requirements with a local advocate and a chartered accountant before you transact.