The Ultimate Checklist for Legal Due Diligence in Property Investment

Phase 1: Title and Ownership Verification

• [ ] Title Deed Verification: Obtain and verify the original Sale Deed/Title Deed to confirm the seller's ownership.
• [ ] Trace Parent Deeds: Collect and scrutinize all historical ownership documents ("parent deeds") for at least the last 30 years to establish a clear and unbroken chain of title.
• [ ] Encumbrance Certificate (EC): Obtain an EC for the last 30 years from the sub-registrar's office to check for mortgages, liens, or other registered claims.
• [ ] Nature of Title: Determine if the title is freehold, leasehold, or ancestral, and understand the implications of each.

Phase 2: Regulatory and Approval Checks

• [ ] RERA Registration: For new projects, verify the project's registration on the state RERA website. Check the completion date and other details.
• [ ] Approved Layout and Building Plans: Obtain a copy of the plans sanctioned by the local municipal authority (e.g., BBMP, BDA).
• [ ] Land Use Conversion: Verify that the land has been converted from agricultural to non-agricultural (residential/commercial) use by the competent authority.
• [ ] Occupancy Certificate (OC): For completed buildings, ensure the developer has obtained the OC, which certifies the building is fit for habitation.
• [ ] Commencement Certificate (CC): For under-construction projects, verify the CC.

Phase 3: Tax and Dues Verification

• [ ] Property Tax Receipts: Check the latest property tax receipts to ensure all taxes are paid and the records are in the seller's name.
• [ ] Khata Certificate and Extract: Verify that the Khata (a revenue document) is in the seller's name.
• [ ] Society Dues: For apartments, get a "No Dues Certificate" from the society office.
• [ ] Utility Bills: Check for any outstanding electricity, water, or other utility bills.

Phase 4: Litigation and Dispute Search

• [ ] Court Record Search: Conduct a search in local courts to see if the property is involved in any ongoing litigation.
• [ ] Physical Inspection and Neighbor Inquiry: Visit the property and talk to neighbors to uncover any boundary disputes, access issues, or other local problems.
• [ ] Seller's Identity Verification: Verify the seller's identity using their original PAN and Aadhaar cards.