Buying Property? 5 Legal Checks Save ₹50L

Buying a new home or plot in India? Before you sign anything or pay a token amount, there are critical legal, financial, and regulatory checks every buyer must do to avoid losing lakhs — or getting stuck in a dispute for years.

Here's what happened: Property fraud and title disputes are among the leading causes of financial loss for Indian middle-class homebuyers, often running into tens of lakhs.. RERA, introduced in 2016, gives buyers legal rights — but only for registered projects; many buyers still unknowingly purchase from unregistered developments.. Banks do their own legal checks before sanctioning a home loan, but these are lender-focused — not a substitute for the buyer's independent due diligence..

What you should do: Check your project's RERA registration number on your state's official RERA portal before paying any token or booking amount.. Obtain the Encumbrance Certificate (EC) from the Sub-Registrar's office to confirm the property has no existing loans or legal claims against it.. Hire an independent property lawyer (not recommended by the builder) to conduct a 30-year title search before you sign the sale agreement..

Pro tip: Under RERA, if a builder delays possession, you are entitled to the same interest rate the builder would charge you for a delay in payment — use this clause to negotiate or claim refunds.