Legal Checklist Before Buying Property

Introduction

Buying property is one of the biggest financial decisions you'll make. But without proper legal precautions, it can also become a source of disputes, fraud, or loss. Here’s a simplified legal checklist to follow before signing the dotted line.

1. Verify the Title Deed

Make sure the seller is the actual owner and has the legal right to sell the property. A clear title ensures no one else can claim ownership.

2. Check Encumbrance Certificate

This shows whether the property has any legal dues, loans, or disputes. It’s a critical document, especially for resale properties.

3. Approved Building Plan and Zoning

Ensure the property has approval from the local municipal authority and is in a zone where residential/commercial development is permitted.

4. Verify Property Tax Receipts

Ask for recent tax receipts to confirm that there are no pending dues with the local body.

5. Sale Agreement

Before finalizing the purchase, sign a sale agreement detailing price, terms, payment schedule, and date of possession.