Key takeaways
- Verify ownership and the chain of title before negotiating price.
- Match the payment plan to your liquidity, not just the loan sanction.
- Inspect the property physically and check approvals independently.
- Read the agreement for possession, penalty and exit terms.
- Keep a contingency for registration, interiors and delays.
Title and approvals
The most expensive property problem is a title that cannot be enforced. Ask for the chain of ownership, the current sale deed, mutation records and the encumbrance status. For under-construction projects, check the approved layout, building plan and the developer's track record on earlier projects.
A legal review is not a substitute for your own reading. Understand who currently owns the property, who has rights over it, and whether any loan, lien, tenancy or family claim attaches to it. If the seller cannot explain a gap in the chain, pause.
- Sale deed and chain of title
- Mutation and property tax records
- Encumbrance certificate or equivalent local record
- Approved plans, land-use status and completion documents
Physical and technical checks
Visit the property more than once, at different times of day. Check construction quality, water supply, drainage, electricity load, access roads and neighbouring land use. For an older property, factor in repair costs that are not visible in photographs.
For a plot, check boundaries, access, zoning and any proposed infrastructure that could affect the site. For an apartment, review maintenance charges, common-area condition and the society's records where applicable.
Money and financing
Add registration, stamp duty, brokerage, interiors, shifting and a contingency to the purchase price. If you are using a home loan, remember that the sanction amount is based on the lender's valuation, which may be lower than the negotiated price. The gap is funded from your own pocket.
Plan your liquidity after the purchase, not just before it. A property that leaves you with no emergency fund becomes a source of stress the moment an unexpected repair or income disruption appears.
- Down payment plus registration and statutory charges
- Loan processing, valuation and legal fees
- Interiors, repairs and society or maintenance deposits
- At least a few months of living expenses after purchase
The agreement and payment schedule
Read the agreement for possession date, delay penalty, cancellation terms, specification changes and what happens if the loan is delayed. In resale transactions, link payments to documented milestones and confirm how the original loan, if any, will be closed.
Do not sign a document you have not read because the seller is in a hurry. Time pressure is a negotiating tactic, not a legal protection.
After possession
Complete mutation, update utility connections, collect the occupancy or completion certificate where applicable, and keep a complete set of documents in one place. If the property is financed, check the lender's requirements for insurance and original document custody.
Editorial note
This guide is general and educational. It does not create an advisory relationship and is not an offer, sanction, quotation or legal opinion. Loan approval, rates, insurance issuance and claim decisions rest with the relevant bank, NBFC or insurer. For your specific facts, speak to an advisor and read the partner's documents before signing.
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