Buying or selling a property
Sale deeds, registration, stamp duty, builder problems.
A house or a plot is probably the biggest amount of money you will ever move at one time. Most property trouble comes from skipping a few basic checks before paying. Here is what to check, and what each step means.
What the law says
- The seller can only sell what they actually own, or what they hold a proper written authority to sell for someone else. Before anything, you need to see clear title: proof that the seller is the rightful owner, and that the chain of ownership behind them is clean and unbroken.
- An Encumbrance Certificate (EC) from the sub-registrar shows whether the property has any loan, mortgage or legal charge on it. A clean EC means there is no hidden bank or court claim on the property.
- There are two different documents. An agreement to sell is a promise to sell on agreed terms, usually with an advance. The sale deed is the actual transfer of ownership. You become the owner only when it is signed and registered.
- The sale deed has to be registered at the sub-registrar's office and stamp duty paid, or the transfer is not legally valid. It must be presented for registration within four months of being signed. Until it is registered, you are not the owner. After that, get mutation done, which means the municipal or revenue records are updated to your name.
What to do
- 1
Check the title and the chain of ownership
Ask for the original title documents and trace the ownership back over the years. A property lawyer reads the older deeds, checks each link, and confirms the seller really has the right to sell. Do not accept a photocopy or a verbal assurance as proof.
- 2
Get the Encumbrance Certificate and check the approvals
Get a fresh EC to confirm there is no outstanding loan or charge. For a flat, also check the approved building plan. For an under-construction project, check that the builder is registered with RERA, your state's builder regulator. Very small projects, under eight flats, do not have to register. For anything larger, no RERA registration is a serious warning sign. Check that the number covers your phase, because each phase has to be registered on its own.
- 3
Get the agreement to sell written properly
Before you pay an advance, put the terms in writing: the price, the payment schedule, what happens if either side backs out, and the date for the final sale deed. This document protects your advance, so do not rely on a one-line receipt.
- 4
Register the sale deed and update the records
Pay the stamp duty, sign the sale deed, and register it at the sub-registrar's office in person. You have four months from the day it is signed, and missing that can cost you the transfer. Then apply for mutation so the property is recorded in your name with the municipal or revenue office. Keep every receipt and the registered deed safely.
Your rights
Inspect the title and the ownership chain
- How long it takes
- Before paying any advance
- Where to go
- The seller's documents, checked by a property lawyer
- Cost
- Lawyer's fee
Get an Encumbrance Certificate
- How long it takes
- A few days
- Where to go
- Sub-registrar's office, often online
- Cost
- Small fee
Register the sale deed
- How long it takes
- Within 4 months of signing the deed. This deadline is strict.
- Where to go
- Sub-registrar's office
- Cost
- Stamp duty, which varies by state, often 5 to 7%, plus the registration fee
Complain about a builder or a project
- How long it takes
- Weeks to a few months
- Where to go
- State RERA authority. Civil court for title disputes.
- Cost
- Filing fee + lawyer
Common questions
When you need a lawyer
Property almost always needs a lawyer. The money is large, and a bad title or a wrong deed is very hard to undo. Miss Lucy Lite can help you understand the documents and write the agreement to sell for you. But a local advocate must check the title, prepare the sale deed and handle the registration. Do not do this part alone.
Miss Lucy Lite can write the agreement to sell for youThis is guidance, not a lawyer. Miss Lucy Lite helps you understand your rights and what to do next. She is not a lawyer, and this is not legal advice. If you need a document written, such as a notice, a complaint or an application, she can write it for you as a finished document. For a court case, see a lawyer.