property purchase guide




Buying property is a serious business, because you are not only buying a dream property but also your investment in life. It is obvious that you don’t want to invest on property which causes problem or risk in future. You may be searching for a guide to understand simple procedure for smooth and easy buying of property

Here is an attempt to provide simple guide for cross-checking before buying a property.

1. Ask for Photocopies of all deeds of title, revenue records and all other documents related to the property to be purchased, click here to know the checklist of the records & documents to ask for purchasing property in Karnataka.

2. Do not buy a property if the title of property is not clear. If title is not clear or marketable it will cause problem in future. You can seek assistance of your lawyer to know whether the title of the property is clear.  

3. Origin of the property is very important to trace the title of the property. Documents covering a minimum period of 41 years must be scrutinized.

4. After ascertaining origin of the property, you should ensure methodical examination of events and subsequent transaction

5. Revenue records must be verified, revenue records should bear the name of the seller. 

6. Ensure that seller of property has all documents relating to property. 

7. Ask for original property documents and compare the same with photo copies provided for scrutiny.

8. You must physically verify the property. On spot, you must verify the property physical measurement and boundaries; it should tally with the measurement and boundary mentioned in the documents.  You must also ensure that there is no physical encroachment on the property. You may also make enquires with the adjacent owners about the ownership of the property.

9. You must ensure statutory clearances (like local clearances, NOC’s, Conversion, unto date taxes, etc), with regard to the property.

10. You may notify in a leading newspaper about your intention to purchase the property.  Though paper notification is optional, sometimes when published you might receive response from a genuine claimant.  This will help you in understanding disputes if any with regard to the property and avoid legal problem at a later date. 

11. Property must be duly converted for residential purpose/ occupation, by the order of the competent authority.

12.  Get copy of the approved layout for the building from your builder or seller of the property. Compare photo copy with the original plan. Ensure that building plan or layout or construction is approved by the concerned authorities and the property you intend to purchase is within the approved plan.

13. Confirm Stamp duty, Registration charges and transfer fees to be paid on purchase of the property as well as other outgoings to be paid for the property i.e. property tax, water, electricity, maintenance, society charges etc.  Get good idea of total cost of all components with regard to property purchase, though all components are not immediately available, but should be factored into total cost.

14. Access to the property is critically important. If access is difficult, re-sale values will be affected, and may cause day to day inconvenience. You may also ensure proximity to bus stand, hospitals, market, central business district, hotels etc. 

15. Check around with local sources to find builder or developer or seller reputations.

16. There must be nil encumbrances on the property. You must ensure that all existing charges (including mortgages) are cleared by the seller before entering into any transaction.

17. Ensure that the property you are buying has adequate water and power supply and sewage facility.

18. You must retain and backup all the correspondence or documents made with the builder or developer or seller.

19. You must carefully read the draft deeds before entering into any transaction (sale or Sale Agreement, etc.).

20. Avoid arbitration clause in contracts of purchase. Arbitration clauses were apparently designed to reduce the time and expenses of litigation, but many times may consume much time while appointing Arbitrator if the other party does not consent and many times arbitration clause empowers the builder to appoint the sole arbitrator, which is not agreeable and Arbitration proceeding cost may end up much higher than the court fees.

21. If you have belief in vastu, get consultation done before buying the property.


The foregoing is not a complete list of preventive measure, but is only a guideline, but hopefully it might be useful for people considering buying and selling of property.

My old blog on blogpost on the same subject click here.