Buying property is a big financial decision—and one that should be approached with careful legal scrutiny. From verifying ownership to checking for encumbrances, failing to do the right legal checks can lead to disputes, financial loss, or years of litigation. Here’s a comprehensive guide to what you should check legally before buying property.
1. Verify the Title Deed
The title deed confirms the legal ownership of the property. Make sure the seller is the rightful owner and has the authority to sell. Ask for the original deed and have it verified by a lawyer. It should be clear of legal disputes or claims by others.
2. Check for Encumbrances
An encumbrance certificate will tell you if the property is under any mortgage, legal dues, or third-party claims. This certificate can be obtained from the local sub-registrar’s office and helps ensure the property has a clear financial history.
3. Ensure Land Use Permissions
Confirm that the property is zoned for the intended use—residential, commercial, industrial, or agricultural. Buying a residential flat in a non-residential zone can lead to penalties or demolition notices. Always check with the local planning authority.
4. Verify Building Approvals
If the property is part of a building project, check whether the construction plan has been approved by the municipal corporation or local development authority. Lack of approval can make the structure illegal and unfit for registration or resale.
5. Check RERA Registration (If Applicable)
For properties in India under development, ensure they are registered under the Real Estate Regulatory Authority (RERA). RERA registration ensures that the builder is accountable, and the project meets regulatory standards. It also protects your rights as a buyer.
6. Examine the Sale Agreement
The sale agreement should clearly outline all terms, including the property details, total price, payment schedule, possession date, and penalties for breach. It must be legally vetted before you sign. Avoid agreements that are vague or overly favorable to the seller.
7. Validate Possession and Completion Certificates
For ready-to-move properties, ask for a Possession Certificate and a Completion Certificate. These documents confirm that the builder has finished construction according to approved plans and that the local authority has inspected and approved it for occupation.
8. Review Property Tax Receipts
Ask for the latest property tax receipts and check if all dues have been paid. Unpaid taxes could result in penalties or even legal claims against the new buyer. This also confirms the property’s legitimacy in municipal records.
9. Investigate for Litigation or Disputes
Conduct a background check through legal professionals or public records to ensure the property is not involved in any ongoing litigation. A clean legal history is essential for your peace of mind and the property’s resale value.
10. Check for Mutation of Property
Mutation refers to the transfer of property ownership in land revenue records. It ensures that the property taxes are being paid by the rightful owner. Always check that the mutation is in the seller’s name before proceeding.
Conclusion
Buying property without conducting proper legal checks can lead to costly mistakes. Taking the time to verify documents, clear encumbrances, and ensure compliance with local laws will protect your investment and help avoid future legal trouble. Always consult a qualified property lawyer before finalizing the purchase.
