Verify these Legal Aspects while buying plots, property

Legal Aspects to keep in mind while buying property


Buyers must first do their due diligence to verify the existence of the seller's title, its nature, its marketability, and the seller's capacity to transfer a clear, marketable title that is free from encumbrances. Documents pertaining to the property's title include the following: Government orders for grants, succession certificates, sale deeds, gift deeds, wills, division deeds, etc. These documents show how title has changed hands through the years, ultimately vesting in the seller.

Leasehold, freehold, or development right must be kept in mind. Also, the power of attorney and development agreement signed by the owners in the seller's favor, should the seller assert development rights to the land or not must be checked. At the office of the jurisdictional sub-registrar of assurances, all title documents are properly stamped and registered. Under the seller's name, Khata registered. Details of ongoing or concluded legal cases. The seller must be able to provide the original title documents.

Identity of the seller

Additionally, the buyer should learn the seller's name and any special terms that may apply to the seller's capacity to transfer the property.

If the seller is an individual, their place of residence, their nationality, and whether or not they need approval from the relevant authorities before the sale can proceed. Identifying each owner of a property, if there are many owners. Where the seller is an organization—a company, trust, partnership firm, society, etc. In addition to ensuring that the individual signing and registering the sale deed has the legal authority, the entity's constitution documents are required to establish its capacity to possess and transfer the property. When the property is held by a minor or a person who lacks capacity, orders from the appropriate court authorizing the sale of the property and appointing a guardian. Before purchasing a plot, one should must verify the seller's identity using documents like one's passport, Aadhaar number, PAN number, income tax returns, salary certificates, etc.

Land use permission

Since numerous state regulations prohibit non-agriculturalists from purchasing agricultural property, the merging of revenue lands with urban conglomerates and the conversion of property for non-agricultural usage take critical significance.

The buyer needs to make sure the land is developed in line with the zoning plan, which may include residential, commercial, industrial, public/semi-public, parks and open spaces, etc. by looking through the Master Plan. It is necessary to acquire directives from the Town Planning Authority authorizing changes to land use where actual use differs from the notified zoning.


When buying an apartment or a plot of land with a built-up structure, the buyer should also carefully examine the building plan and layout approved by the local municipal authorities, as well as any other approvals given by governmental, statutory, and regulatory bodies for the provision of infrastructure facilities like water, sewage, electricity, environmental clearance, and fire safety approval, among others.

To obtain the "intimation of disapproval," or initial permit needed for building construction, it is necessary to ask the builder for copies of NOCs from various departments, including the Pollution Board, Environment Department, Sewage Board, and Traffic and Coordination Department.

Occupancy Certificate

Prior to selling the property, the seller must obtain the occupancy certificate from the appropriate authority. Along with the potential for demolition, use of the property without securing occupancy subjects the buyer to fines under the relevant building bye-laws.


The property incurs a charge for unpaid taxes, which reduces its marketability. Therefore, the buyer must confirm with the local government that the seller has not fallen behind on paying property taxes. Request the seller's receipts for all of the utility bills. Please be aware that after the property is transferred into buyer’s name, buyer will be responsible for paying any outstanding debts, including utility bills.


If the seller is a company, searches at the Ministry of Corporate Affairs' official website or the jurisdictional sub-registrar office will provide details about any registered encumbrance on the property. Prior to closing the deal, the buyer may, out of an abundance of caution, publish a notice in the newspapers asking for any claims from interested third parties.

Physical Survey

In order to validate the size and dimensions of the property, the buyer may conduct a physical survey. In the case of land, it is wise to establish the location of the property's entrance and limits as well as any other physical features that would make it difficult for a person to use the land as they see fit.

Compliance under the Real Estate (Regulation and Development) Act, 2016 (RERA)

According to the RERA, developers are required to register their projects with the organization created by the Act. A buyer who wants to purchase a property in a development covered by the RERA is recommended to check to see if the property has been registered with the authority.

Information on any cases or complaints brought against the project developer or developer default is also available on the official RERA web portal for each state. The legislation requires all real estate brokers to register with the state RERA in order to conduct business legally, therefore buyers should be aware of this requirement.

Loan outstanding

Perform due diligence and review some paperwork before signing a contract to ensure there are no loans owed on the property you are purchasing. Before making a purchase, it is advised that the buyer request the loan's closure and obtain a "no dues certificate" from the bank.


To conclude, one of the most crucial records that serves as the foundation for the sale and transfer of ownership of the subject property is the sale deed. Never consent to sign anything without first conducting one’s own inquiry. Check the RERA ID and registration of an agency or a developer, even if they come highly recommended by individuals one knows. Never consent to offering cash in lieu of tax relief. Never consent to buying or selling a property on another person's behalf.

Frequently Asked Questions

A resale home is a home that was purchased and is ‘For Sale’ by the initial buyer. A resale indicates that the property is being sold to someone new from someone who was assigned the same property before. Essentially, the resale property can either occur from the first allotted or the beneficiary who had bought the same from someone else previously. For example, a second hand flat in Patna will be considered a resale property.

Depending on the state and region, you need everything from a sale deed, mother deed, Katha certificate, tax paid receipt, Katha certificate, occupation certificate, no objection certificate from the bank, society, maintenance office, Aadhar, etc for a property resale.

A resale home comes at a lower cost, is ready-made, and you also get payment schedules for resale flats and tax benefits like a new home. However, the resale property may also be old needing maintenance, may not be eligible for home insurance, and you have an added cost of constructing new amenities.

To purchase a resale property, you need to present sale deed, building plan, completion/occupancy certificate, encumbrance certificate, and paid tax receipts, among others.

You can visit the online portal of your chosen bank and follow the instructions to apply for a home loan. The home loan application process is almost the same in both new and old property purchases. However, the set of documents and approval process may vary from bank to bank. You can also opt for our home loan package to enjoy pre-approved home loan benefits.

You must verify the age of the property and make a visit to check its physical condition. Additionally, you must check all the property-related documents, pending dues and the location factor with facilities available nearby.
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