When Rajesh Mehta, a corporate professional from Pune, bought his dream home worth Rs 60 lakh last year, he believed every box was checked. From verifying the builder’s credentials to ensuring his bank loan was approved, everything seemed perfect — until one missing document came back to haunt him. Today, Rajesh is fighting a property ownership dispute in court, all because he skipped verifying a crucial legal paper.
Tax advisory platform TaxBuddy.com recently shared his cautionary tale on X (formerly Twitter), reminding homebuyers that one oversight can lead to years of litigation. The viral thread, which began with “If you’re a homebuyer, you should note these”, lays out the nine essential documents every property buyer in India must verify before finalizing a deal.
1. Title Deed
This is the foundation of ownership. Buyers must always demand the original title deed, verify the seller’s name with government land records, and check for any encumbrances or claims. Without it, legal ownership remains uncertain — the exact mistake that landed Rajesh in court.
2. Encumbrance Certificate (EC)
An Encumbrance Certificate reveals whether the property carries any unpaid loans or legal dues over the past 15–30 years. It’s obtainable from the Sub-Registrar’s office. Rajesh skipped this step, only to later discover that the previous owner had mortgaged the property with a cooperative bank.
3. Sanctioned Plans & Approvals
Buyers should compare the approved plan from the local municipal authority with the actual structure. Any deviation could invite penalties or even demolition orders. Rajesh’s housing society was later flagged for unauthorized construction — an issue hidden at the time of purchase.
4. Tax & Utility Bills
Before possession, ensure there are no outstanding property tax, water, or electricity bills. Unpaid dues can be transferred to the new owner.
5. RERA Registration
For under-construction projects, confirm the project is listed on the state RERA portal. Registration offers legal protection against construction delays and fraud.
6. Sale Agreement
This legally binding contract must clearly specify payment terms, possession timelines, penalties, and liability clauses. Many buyers sign without reviewing fine print — a common mistake in rushed transactions.
7. Sale Deed / Conveyance Deed
The final transfer document that legally transfers ownership must be registered with the Sub-Registrar’s office. Buyers should ensure the consideration amount (sale price) is accurately mentioned to avoid future disputes on stamp duty or taxes.
8. Legal Due Diligence
“Paying a good property lawyer is far cheaper than fighting litigation,” TaxBuddy warned. Lawyers can detect missing clauses, title inconsistencies, or power-of-attorney issues before they become court cases.
9. Extras to Watch
Homebuyers should also confirm the occupancy/completion certificate, verify the ownership chain, and avoid deals made through a weak or expired power of attorney.
Registration and ownership
In April this year, a Supreme Court ruling on property registration clarified that registering an immovable property does not automatically confer ownership. The verdict, in the case of Mahnoor Fatima Imran & others vs State of Telangana & others, stemmed from a dispute over land bought in 1982 via an unregistered sale agreement. The Court held that possession or a subsequent registered transaction cannot establish legal title if the seller lacked a clear title.
The ruling underscores the importance of verifying the entire chain of ownership, not just the registration document. Buyers and realtors must now conduct thorough due diligence, including examining sale deeds, title deeds, encumbrance certificates, mutation certificates, and possession letters. While registration ensures transparency, public record, and protection against fraud, it is only one part of proving ownership.
The decision is expected to reduce fraudulent transactions and litigation but may increase processing time and transaction costs. Buyers and realtors will need to exercise greater legal scrutiny to ensure secure and legitimate property transfers.
Rajesh’s story underscores a painful truth: property deals in India demand precision. Missing one document — especially an Encumbrance Certificate or Title Deed — can turn a dream home into a legal maze. As TaxBuddy summed it up, “One skipped step can cost you lakhs — and years of peace of mind.”