Legal Basics for Property

These are two different documents:

• Sale Agreement — a promise to sell/buy at an agreed price and terms. It is signed first, usually with a token advance. It is NOT a transfer of ownership. • Sale Deed — the final document that transfers ownership from seller to buyer. It must be registered at the sub-registrar's office to be legally valid.

Never pay the full amount at the agreement stage. The typical flow is: agreement (1–2% token) → loan sanction → due diligence → sale deed registration (balance payment).

A clear title means the seller has the legal right to sell and there are no disputes or encumbrances on the property. To verify:

• Get the title deed chain for the last 30 years from the sub-registrar's office • Obtain an Encumbrance Certificate (EC) for 30 years — this shows all transactions on the property • Check for pending litigation in district and high courts • Verify the seller's identity with Aadhaar/PAN • For inherited property, check the succession certificate or will and ensure all legal heirs have consented

A property lawyer can handle this verification — fees vary by complexity.

The Real Estate (Regulation and Development) Act, 2016 protects home buyers:

• All projects above 500 sqft must be RERA registered • Developers must disclose project plans, timelines, and approvals • Carpet area must be clearly defined (no super built-up area tricks) • Developers cannot change plans without 2/3 buyer consent • Delayed possession entitles you to interest from the developer • A dedicated grievance redressal mechanism (RERA Authority + Appellate Tribunal)

Always verify RERA registration on your state's RERA portal before booking an under-construction property.

Stamp duty is a state tax on property transactions. Rates vary:

• Karnataka — 2–5% (based on property value) • Maharashtra — 5–6% (lower for women in some cases) • Delhi — 4–6% (lower for women) • Tamil Nadu — 7% • Telangana — 4%

Registration charges are typically 1% of property value. Both must be paid before the sale deed is registered. Use our Stamp Duty Calculator at /tools/stamp-duty-calculator for estimates.

Payment is made through e-stamping or franking — most sub-registrar offices accept online payment now.

POA sales (also called GPA sales) are when the property is sold using a General Power of Attorney instead of a registered sale deed. These are risky:

• The Supreme Court of India has ruled that POA sales do NOT transfer title • Banks may refuse to give a home loan on POA properties • The original owner (or their heirs) can reclaim the property

Avoid POA sales entirely. If you already hold a POA property, consult a lawyer about getting a proper sale deed registered.