What should I check before buying land or a flat?
Simple answer
Check that the seller truly owns it and can sell it: past title documents, an encumbrance certificate (no loans or cases), approvals and, for new projects, RERA registration. Then pay stamp duty and register the sale deed. Only a registered sale deed makes you the owner.
Real-life examples
Arjun was buying a resale flat in Chennai. The encumbrance certificate showed a bank loan still registered against it. He asked the seller to close the loan and get the bank's release before signing the sale deed.
Neha bought a plot in Delhi through a 'GPA, agreement to sell and will' to save stamp duty. The Supreme Court has held that such deals do not transfer ownership. She is not the legal owner until a registered sale deed is made.
Sanjay's builder asked for 20% of the price before signing any agreement. Under RERA, a builder cannot take more than 10% before a registered agreement for sale.
What should you do?
- 1Get copies of all title documents, ideally for the last 30 years, and have a property lawyer check them.
- 2Get an encumbrance certificate from the Sub-Registrar's office (online in many states). Check that land records, mutation and tax receipts are in the seller's name.
- 3Check approvals: sanctioned building plan, completion or occupancy certificate, and land-use or conversion permission for land.
- 4For a new project, check its RERA registration and status on the state RERA website.
- 5Make sure every owner and co-heir signs, and pay through the bank, not in cash.
- 6Pay stamp duty, register the sale deed at the Sub-Registrar's office, then apply for mutation in your name.
Exceptions & limits
- Agricultural land: many states restrict who can buy it, or require permission before it can be used for building.
- Some small projects are exempt from RERA registration. For these, do extra checks on approvals and the builder's record.
- Tribal land, government-allotted land and property attached by a court usually cannot be freely sold.
Official legal reference
Transfer of Property Act, 1882 — Section 54
A sale of immovable property worth ₹100 or more needs a registered deed; an agreement to sell alone gives no ownership.
Registration Act, 1908 — Section 17(1)(b)
Documents that create or transfer rights in immovable property worth ₹100 or more must be registered.
Real Estate (Regulation and Development) Act, 2016 — Sections 3, 13
Projects (except small exempt ones) must be registered with RERA before being sold; builder can't take over 10% before a registered agreement for sale.
Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011)
Supreme Court: GPA, agreement to sell and will do not transfer ownership; only a registered sale deed does.
Where to get help
NALSA Free Legal Aid
Free lawyer and legal advice for eligible people through Legal Services Authorities.
Source & status
- Applies to
- Varies by state
- Stamp duty, registration fees, online land records, encumbrance certificates and limits on buying farm land differ by state. Check your state's registration and revenue department websites.
- Law in force since
- 1 Jul 1882
- Legal review
- Draft — awaiting lawyer review
Educational information, not legal advice for your case. Exact facts and the law that applies matter — speak to a lawyer before acting.