What documents should I check before buying property?

What the Law Says

Indian property law requires buyers to verify key documents to ensure a valid, marketable title and avoid future disputes. The Transfer of Property Act, 1882 governs sale transactions, while the Registration Act, 1908 mandates registration of sale deeds above ₹100.

The Transfer of Property Act, 1882 defines a 'sale' as transfer of ownership for a price, and Section 54 states that sale of immovable property of value ₹100 or more must be made by a registered instrument. This ensures legal enforceability and public record.

Under the Registration Act, 1908, Section 17(1)(b) makes registration compulsory for instruments of gift, non-testamentary transfers of immovable property, and leases exceeding one year — failure renders the document inadmissible in court.

The Encumbrance Certificate (EC), issued under the Indian Registration Act rules, confirms whether the property has any liens, mortgages, or court attachments in the last 30 years — a critical safeguard against hidden liabilities.

Statutory Text

Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.

— Transfer of Property Act, 1882, s. 54 — Sale defined

Statutory Text

It shall be lawful for any person desirous of acquiring information as to whether any subsisting encumbrance has been registered… to apply… for an encumbrance certificate.

— Registration Act, 1908, Rule 72 — Encumbrance Certificate

Sources