Buying and Selling Property in India
Buying or selling property in India can be a shrewd business move, especially for NRIs who wish to retain a connection with their roots. But it entails lawful paperwork, local regulations, and strict scrutiny. If you are not vigilant, you could end up in legal or financial strife later on. This article will guide you through a step-by-step process, define important paperwork, and point out typical red flags.
Section 1: Purchasing Property in India-A Step-by-Step
Step1: Verify Ownership and Documents
Request the Title Deed– shows who legally owns the property.
Request the Encumbrance Certificate (EC) –indicates whether there are loans or legal cases on the property .
Verify the recent property tax receipts, electricity/water bills, and building plan approvals. Ensure the name of the seller matches across all documents.
Step 2: Physically Verify the Property
Visit the property yourself or send someone you trust.
Confirm who is living there, and whether it’s fully built or under construction.
Make sure that the property is not under any dispute or illegal possession.
Step 3: Appoint a Consultant
A local real estate consultant can check the papers and verify land records.
They can protect you against fraud, particularly when purchasing from overseas.
Step 4: Draft a Sale Agreement
A legal document between buyer and seller that includes:
-Price
-Payment schedule
-Possession date
-Terms & conditions
Step 5: Pay stamp duty & Register the sale
Pay stamp duty and registration fees (varies by state).
Visit the Sub-Registrar Office with ID, proof and documents.
The Sale Deed is registered in your name- this proves legal ownership
Section 2: Selling Property in India- A Step-by-step
Step1:Gather All Documents
-Original Title Deed
-Past Sale Deeds (if any)
-Encumbrance Certificate
-Tax receipts and utility bills
-Approved buildings or layout plan (if applicable)
Step 2: Clear Outstanding Dues
-Pay outstanding taxes or electricity/water bills before listing the property.
Step 3: Fix a reasonable Price
-Find out the market rate in the locality
-Use a trusted local agent or attorney, if necessary.
Step 4: Sign a sales Agreement
-Include buyer and seller details, total amount, and advance paid.
-Set a deadline for full payment and property handover.
Step 5: Register the sale deed
-Visit the Sub-Registrar Office with the buyer and twowitnesses.
–After registration, handover possession to the buyer.
Important Tips for NRIs
Do’s
-Utilize Registered Power of Attorney if you are abroad. Always get legal advice before signing anything.
-Retain all receipts and paperwork.
-Verify the zone and type of land use.
Don’ts
-Do not give general or vague authority.
-Do not use friends or relatives.
-Do not overlook unpaid bills or taxes.
-Do not purchase land in restricted areas without checking legality.
Red Flags
1. The property title is unclear or has handwritten changes.
2. The seller has no original documents.
3. The property has unpaid dues or is in a disputed area.
4. Lacking or outdated Encumbrance Certificate.
5. Power of Attorney is too broad or not registered.
Recent Supreme Court Update (2025)
The Supreme Court ruled that a Sub-Registrar cannot reject a property registration based on ownership doubts.
However, registration alone doesn’t prove ownership. You still need proper legal documents and history to defend your claim in court, if challenged.
Also, mutation is important after registration.
Conclusion
Purchasing or selling property in India is a considerable financial investment. For an NRI, it may be further complicated by distance and legal differences.
Follow a step-by-step approach, verify all documents, and consult a creditable consultant.
A registered sale deed, proper title verification, and clean paperwork will protect your investment and give you peace of mind.
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