From celebration to courtroom: The legal checklist every homebuyer in India should follow

Buying a home is often the biggest financial milestone of one’s life. But for many, the celebration ends abruptly when a missing or ignored document turns into a legal nightmare. 

Imagine this: you purchase a flat worth lakhs — or even crores — in your favourite city. The deal is sealed, the keys are yours, and the celebration begins. Then comes a legal notice. The reason? A single missing paper you didn’t even know mattered. 

This is not a one-off story. Many homebuyers, especially first-timers, underestimate the importance of legal paperwork when purchasing a property. Financial advisory platform TaxBuddy recently took to X (formerly Twitter) to warn homebuyers about the documents they often overlook — and the steep price they could pay for doing so. 

Citing a real example, the platform wrote: “Mr. Rajesh bought a ₹60-lakh flat in Pune. Now he’s fighting a legal case because he skipped just one document.” 

The post then broke down the essential documents and checks every buyer must complete before sealing a property deal: 

Title deed: The cornerstone of property ownership. Always demand the original title deed and confirm that the seller’s name matches government records. Any mismatch, encumbrance, or pending dispute could make your ownership invalid. 

Encumbrance certificate (EC): A crucial record that reveals if the property has any existing mortgages, loans, or legal dues over the past 15-30 years. Buyers can obtain it from the Sub-Registrar’s Office. 

Sanctioned plans & approvals: For apartments or large projects, always verify that the construction aligns with the approved building plan. Deviations can attract penalties or demolition notices from local authorities. 

Tax & Utility bills: Unpaid property taxes or pending water and electricity bills can become the new owner’s liability. Cross-check recent tax receipts and utility bills before finalizing the purchase. 

RERA registration: For under-construction projects, confirm the builder’s registration on your state’s RERA (Real Estate Regulatory Authority) portal. RERA registration offers legal protection and transparency for homebuyers. 

Sale agreement/Agreement to sell: This document defines the terms between buyer and seller — including the payment schedule, possession date, and penalties for delays. TaxBuddy stresses that every clause should be reviewed before signing. 

Sale deed/Conveyance deed: The final, registered document that legally transfers ownership. It must clearly state the consideration amount to avoid future stamp duty or tax disputes. 

Legal due diligence: Hiring a property lawyer may feel like an extra expense, but it can save you lakhs in the long run. Lawyers can identify missing clauses, title defects, or fraudulent language that might otherwise go unnoticed. 

Additional checks: Always ensure you have the Occupancy or Completion Certificate for the building and verify the entire chain of past ownership. Avoid transactions based solely on a Power of Attorney unless it’s legally strong and notarized. 

The takeaway? Buying property is more than just paying the price — it’s about protecting your ownership. Skipping a single document can lead to months, even years, of costly litigation. 

As TaxBuddy summed it up: “Paying a good property lawyer is far cheaper than fighting a legal case.”