Property Due Diligence Checklist India

Quick Answer

Property due diligence means proving, before the buyer pays, that the seller can sell, the land and building are approved, and nothing is attached. Check the title chain (30 years is common practice), encumbrance search, land use, sanctioned plan, OC/CC, RERA registration, dues, court cases and any power of attorney. A lawyer gives the title opinion.

A checklist finds the gap. Training tells you what it means.

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At a Glance

Question	Short answer
Who gives the title opinion?	An advocate. The agent collects and flags.
How far back?	30 years is common practice, not a statutory rule. Lenders set their own.
Encumbrance record	EC, Index II or registry search; name varies by state.
Building approvals	Sanctioned plan, commencement certificate, occupancy or completion certificate.
RERA	Project number on the state portal, or a valid Section 3(2) exemption.
Court cases	eCourts party-name search; RERA orders and NCLT for developers.
Biggest single trap	A "sale" on GPA, agreement and Will. It does not pass title (Supreme Court, 2011).

What Does Property Due Diligence Cover, and What Is the Agent's Part?

Four questions: can the seller sell; may the land be used this way; was the building approved and completed as approved; and is anything attached, such as a loan, a case or dues?

Section 10(a) of the RERA Act bars agents from facilitating sales in unregistered projects, and Section 10(d) requires them to facilitate the buyer's access to the documents due at booking (Confirmed, RERA Act). Nothing makes an agent a title examiner. Collect, cross-check, flag and refer.

The Printable Due Diligence Checklist

Twelve groups, new and resale. Tick a box only when you have seen the document or a certified copy.

Property Due Diligence Checklist

Property: ____________________ · Buyer: ______________ · Date: ________ · reracertified.in

1. Seller identity

☐ ID and PAN names match the deed
☐ All co-owners and legal heirs sign
☐ Authority of a company or firm signatory

2. Title chain

☐ Certified copies of every deed
☐ 30-year search (practice, not law); longer if gaps
☐ Every link a registered deed, not GPA or Will
☐ Inheritance backed by probate, succession or partition papers
☐ Mutation matches the deed chain

3. Encumbrances

☐ EC or Sub-Registrar search, full period
☐ Mortgage entries in the revenue record
☐ Loan closure letter and release where registered
☐ Original deeds with the seller, not a bank

4. Land use

☐ Master plan use matches
☐ CLU, NA or conversion order for former farm land
☐ No acquisition notice or reservation

5. Sanctioned plan

☐ Plan covers this floor and unit
☐ Commencement certificate issued
☐ Built as sanctioned (no extra floors)

6. OC / completion

☐ OC or completion certificate for this tower
☐ Part OC: which blocks it covers

7. RERA

☐ Number found on the state portal
☐ Promoter, land and dates match
☐ Title and encumbrance declarations read
☐ Exemption: which Section 3(2) clause

8. Other approvals

☐ Fire NOC where local law requires
☐ Environmental clearance for large projects

9. Taxes and dues

☐ Property tax paid, seller's name
☐ Utility and maintenance dues cleared
☐ Stamp duty, TDS and any GST budgeted

10. Litigation

☐ eCourts party-name search
☐ RERA orders; NCLT for the developer
☐ Public notice inviting objections (practice)

11. Power of attorney

☐ POA covers sale of this property
☐ Registered where required; not revoked
☐ Principal alive on signing date

12. Money trail

☐ Bank payments to the seller or promoter only
☐ Receipts for every payment

This list helps an agent collect and flag. It is not a legal opinion. Get an advocate's title opinion before money changes hands.

How Do You Run the Checks, Step by Step?

1. Collect the seller's documents

Deeds, tax receipts, approvals, loan papers and any power of attorney. A starting list, not proof.

2. Verify who is selling

Match ID, PAN and deed names; identify every co-owner, heir and signatory.

3. Pull records independently

Certified copies, encumbrance search and the revenue or municipal record, from the source.

4. Check land use, approvals and RERA

Zoning or conversion, sanctioned plan, commencement and OC or completion, RERA page or exemption.

5. Run dues and litigation checks

Tax, utility and society dues; eCourts; RERA orders and NCLT for the developer.

6. Write down what you found

A dated note to the buyer: each document, its source, each gap.

7. Hand over to a lawyer before money moves

Title opinion before the token. RERA projects: no more than 10% before a registered agreement for sale (Section 13).

Which Document Proves What, and What Does It Not Prove?

Most mistakes come from treating one document as proof of something it never claimed.

Document	What it proves	What it does NOT prove	Where to get it
Sale deed / conveyance deed	A registered transfer to the person named	That the seller's own title was good	Seller's original; certified copy, Sub-Registrar
Earlier deeds (mother deed, chain)	How ownership moved over time	Claims by heirs or under unregistered deals	Certified copies, Sub-Registrar
EC / Index II / registry search	Registered transactions in the period searched	Unregistered deals, cases, dues, mortgage by deposit of deeds	Sub-Registrar or state portal
Land record (Jamabandi, 7/12, RTC, Khatauni, Patta)	Revenue entry: owner, area, recorded mortgages	Title	State land records portal; tehsil
CLU / NA / conversion order	Land may be used for that purpose	That the building is approved	Planning or revenue authority
Sanctioned plan	What may be built	That it was built that way	Development authority or municipal body
Occupancy / completion certificate	Completed per plan and fit to occupy, per local law	Title, or later alterations	Same authority; promoter
RERA project registration	Project registered; declarations filed	Title, quality or delivery	State RERA portal
Power of attorney	Holder may act within its terms	Ownership in the holder's name	Sub-Registrar if registered

"CC" can mean commencement or completion certificate. Always ask which. See OC vs CC vs completion certificate.

What Is the Record Called in Your State?

Same checks, different names (State-specific). More states in Indian property terms explained.

State	Encumbrance check	Land record	Mutation	Where
Maharashtra	Index II and a search of Sub-Registrar records	7/12, 8A; property card in cities	Ferfar	IGR Maharashtra e-search; Mahabhumi
Karnataka	EC	RTC; Khata / e-Khata	Khata transfer	Kaveri 2.0; Bhoomi
Tamil Nadu	EC	Patta, Chitta	Patta transfer	TNREGINET (reported; verify on portal)
Punjab	Sub-Registrar search plus mortgage entries in the Jamabandi	Jamabandi; Fard	Intkal	jamabandi.punjab.gov.in
Haryana	Sub-Registrar search plus mortgage entries in the Jamabandi	Jamabandi; Fard	Intkal	jamabandi.nic.in
Uttar Pradesh	EC	Khatauni	Dakhil kharij	IGRSUP (reported; verify on portal); UP Bhulekh

Is the Project RERA-Registered, or Genuinely Exempt?

Search the number on the portal yourself (how to check a project's RERA number). On the project page, the promoter's Section 4(2)(l)(A) and (B) declarations state its title to the land and any encumbrances (Confirmed, RERA Act). Few agents read them.

If a project claims exemption, ask which clause of Section 3(2):

3(2)(a), small projects: land not exceeding 500 sq m or apartments not exceeding eight, inclusive of all phases. The state may lower these limits.
3(2)(b): completion certificate received before the Act commenced.
3(2)(c): renovation, repair or redevelopment with no marketing, selling or new allotment.

The "or" in 3(2)(a) is not settled

Some authorities treat meeting either limit as enough; others require registration if either is crossed. A 400 sq m plot with 12 flats may be exempt in one state and not another. Check your state's orders before calling a project exempt, and remember an exempt project carries no RERA remedies. See RERA vs non-RERA property.

Why Is a Power of Attorney Sale So Risky?

In Suraj Lamp & Industries (P) Ltd v State of Haryana (SLP (C) 13917 of 2009, decided 11 October 2011), the Supreme Court held that an SA/GPA/Will transaction "does not convey any title nor create any interest in an immovable property", and that immovable property can be transferred only by a registered deed of conveyance. Genuine powers of attorney (say, to a relative or manager) are not affected, and older deals can be regularised by a registered deed.

On a deal: a seller holding only GPA, agreement and Will does not own the property. Where a genuine attorney signs, check the POA covers this sale, is registered where required, is unrevoked, and the owner is alive.

What Red Flags Should Stop the Deal?

No original title deed, or "the bank has it, loan nearly closed"
Chain has a GPA, agreement or Will where a registered deed should be
Revenue record still shows someone else years after the "sale"
EC shows a mortgage with no release, or two sales of the same property
Farm land built on with no conversion or CLU order
More floors built than the sanctioned plan shows; no OC on a "ready" flat
Brochure RERA number not on the portal
Pending suit against the owner or the promoter on eCourts

Untrained Agent Says, Trained Agent Knows

Untrained agent says	Trained agent knows
"EC is clean, so the title is clear."	An EC shows registered entries only; cases and GPA deals may not appear.
"He has a GPA, it's as good as a registry."	Suraj Lamp (2011): SA/GPA/Will does not convey title. Only a registered conveyance does.
"Under 500 yards, RERA doesn't apply."	The test is 500 sq m or eight apartments, all phases, and states read it differently.
"It's RERA registered, so it's clear."	Registration is not a title guarantee. Read the promoter's title and encumbrance declarations.
"Papers look fine to me."	"Here is what I saw and what is missing. A lawyer should give the title opinion."

EC, Index II, Fard, Khatauni, OC, CLU… keep every term handy

The free India Real Estate Dictionary explains these terms in plain words. The ₹499 PDF edition adds a state RERA directory and checklists, and works offline on site visits.

Get the Dictionary PDF · ₹499 →

Worked Example: A Builder Floor in Kharar

Neha wants a second-floor builder floor in Kharar (Punjab) for ₹62 lakh. The seller, Raman, "bought it in 2014, full papers". Four floors stand on a plot of about 170 sq m. Her agent runs the checklist before any token. (Illustrative; names invented.)

Check	Finding	What it means
Seller's documents	GPA, unregistered agreement and Will from the plot owner	No registered conveyance, so no title (Suraj Lamp).
Jamabandi / Fard	Plot owner recorded; bank mortgage entry	Loan needs closure and release.
eCourts	Partition suit by the owner's son, pending	Family claim; a sale now invites dispute.
Sanctioned plan	Fewer floors sanctioned than built; no completion certificate	Possible unauthorised floor; loan harder.
RERA	Under 500 sq m and under eight units	Exempt under either reading of 3(2)(a): no RERA remedies.
Tax at ₹62 lakh	Above ₹50 lakh	If a sale happens, the buyer deducts 1% TDS.

The agent does not call the deal "illegal" or "safe". He gives Neha a dated note of each finding and its source, advises no token, and suggests a property lawyer. Neha keeps her money; the agent keeps a client.

What Is Different in a Resale?

A resale adds the society NOC and share certificate, transfer charges, old maintenance dues, and the seller's loan closure. Our resale property checklist covers these in depth.

Which Tax Checks Belong in Due Diligence?

TDS. The buyer deducts 1% when the price or stamp duty value is ₹50 lakh or more, via Form 141 (Section 194-IA and Form 26QB under the 1961 Act; now Section 393(1) of the Income-tax Act, 2025) (Confirmed, incometaxindia.gov.in).

GST. Under-construction homes: 5%, or 1% for affordable housing, without input tax credit (Confirmed, GST Council, 34th meeting). A sale paid entirely after the completion certificate or first occupation falls outside Schedule II para 5(b) of the CGST Act. Confirm with a CA.

How This Protects You and Your Buyer

The buyer keeps their money

A check before payment costs days. A dispute after costs years.

You stay inside Sections 9 and 10

Contravening them risks a Section 62 penalty of up to ₹10,000 per day of default, capped at 5% of the cost of the plot, apartment or building. Quote your registration number in every sale (Section 9(5)).

Your file is your defence

A dated note of what you checked and flagged shows care. Keep it with your Section 10(b) records.

Deals that close, commission you collect

Lenders reject files with title gaps. Finding them early means fewer deals collapsing at the loan stage.

When Should You Bring in a Lawyer?

Always for the title opinion, before the token. At once if the chain has a GPA, Will, inheritance or company seller; if there is a mortgage or court case; if farm land was converted; if a RERA exemption is claimed; or if an NRI sells through an attorney.

Agents should not give legal opinions. Say: "Here is what the records show and what is missing. I am not a lawyer; please get a title opinion before paying."

Frequently Asked Questions

What documents should be checked before buying a property in India?

The registered title deed and earlier deeds in the chain, an encumbrance search, the revenue or municipal record, land-use or conversion orders, the sanctioned plan, commencement and occupancy or completion certificates, RERA registration where it applies, tax and utility receipts, a court-case search and any power of attorney used.

How many years of title search are needed?

No statute fixes a number for an ordinary purchase. Thirty years is common practice among lawyers and lenders. Go further back when the chain has inheritance, a GPA or a land conversion. The lawyer giving the title opinion decides.

What does an encumbrance certificate not show?

It lists registered transactions in the period searched. It does not show unregistered agreements, GPA deals, court cases, dues, or a mortgage by deposit of title deeds, which is often not registered.

Is it safe to buy a property the seller holds on a GPA?

Not as a sale. In Suraj Lamp & Industries v State of Haryana (2011) the Supreme Court held that an SA/GPA/Will transaction does not convey title; only a registered deed of conveyance does. Insist on a registered sale deed from the actual owner.

Does a RERA registration number prove the property is clear?

No. It proves the promoter registered the project and filed declarations, including on title and encumbrances. It is not a title guarantee. Read those declarations and still run the title, approvals and court checks.

Are projects under 500 sq m or with 8 flats exempt from RERA?

Section 3(2)(a) exempts projects where the land does not exceed 500 sq m or the apartments do not exceed eight, counting all phases, and states may lower these limits. Authorities read the "or" differently, so check your state's position before relying on it.

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RERACertified sells this course. RERACertified™ Pro is a private certification and does not replace state RERA agent registration.