Property transactions involve large payments and a document history that may extend across many years. A buyer should understand what right the seller actually holds and whether the property, project and proposed transfer can lawfully proceed.
The exact due diligence differs for an apartment, resale flat, land parcel, commercial unit or inherited property. A generic list is only a starting point; the title chain and local land/registration system need to be reviewed for the specific asset.
1. Trace the chain of title
Review the deeds and documents through which ownership passed to the present seller. Check names, property description, area, boundaries, consideration and whether the chain contains gaps, powers of attorney, inheritance or court orders requiring further verification.
A current deed should not be read without the earlier documents on which it depends.
2. Check encumbrances and existing rights
Mortgages, charges, leases, licences, litigation, acquisition issues or third party possession can affect the transaction. Obtain the available registration, lender, society/association and other relevant records for the type of property involved.
If a loan is being closed from sale proceeds, document the release and original title document process carefully.
3. For projects, verify regulatory and approval status
Where RERA applies, check the project registration, promoter disclosures, sanctioned plans, timelines and material updates on the relevant regulatory portal. Also review local authority approvals required for the stage of development and occupation.
Do not rely solely on a brochure or sales representative’s statement about approvals.
4. Match physical possession to the documents
Inspect the property and compare the unit, access, boundaries and possession status with the documents. For tenanted or occupied property, understand who is in possession and on what basis before signing.
Photographs, meter records, society records and possession letters may help confirm the practical position.
5. Plan the transaction documents and registration
The agreement for sale, payment schedule, representations, default consequences, document handover, tax deductions and registration steps should be coordinated. State specific stamp and registration requirements can materially affect cost and completion.
Keep evidence of every payment and avoid undocumented cash components.
before commitment file
The exact documents vary, but the buyer should usually obtain enough material to answer ownership, authority, encumbrance and possession questions.
- Title deeds and supporting chain documents.
- Land/municipal records and available encumbrance information.
- RERA/project approvals where applicable.
- Tax, society/association and utility related records where relevant.
- Draft agreement, payment schedule and seller identity/authority documents.
Reference framework
Legal framework referred to in this article
- Transfer of Property Act, 1882
- Registration Act, 1908
- Real Estate (Regulation and Development) Act, 2016 where applicable
- Applicable state stamp, land and municipal laws
Primary materials
This article summarises the legal and regulatory framework relevant to the topic. Later amendments, factual differences and applicable directions may affect the position.