Complete Property Buying Guide in India
In this guide
Step-by-step Process
Fix Your Budget and Financing
Decide total budget including registration, stamp duty (4–8%), GST on new property (5%), and brokerage (1–2%). Check home loan eligibility — banks typically lend up to 80% of property value. Get pre-approval from a lender.
Search and Shortlist Property
Search on RERA-registered projects (rera.gov.in), real estate portals (MagicBricks, 99acres), or through licensed brokers. Verify builder reputation, project approvals, and delivery timeline. Visit site physically.
Verify Legal Title and Documents
Verify: Sale deed chain (last 30 years), Encumbrance Certificate (EC) from Sub-Registrar office, Occupancy Certificate (OC), Building plan approval, Property tax receipts, Mutation records (khata/patta). Engage a property lawyer for due diligence.
Negotiate and Sign Agreement to Sell
Negotiate price, payment schedule, and possession date. Sign Agreement to Sell (not final sale deed) and pay token advance (1–2% of value). Register this agreement to protect your rights. This is a legally binding contract.
Arrange Home Loan (if applicable)
Submit loan application with: KYC documents, income proof (salary slips/ITR), property documents, Agreement to Sell. Bank will conduct technical and legal valuation. Loan sanction letter received in 7–15 days. Disbursement at registration.
Pay Stamp Duty and Register Sale Deed
Calculate stamp duty based on your state rates (typically 4–8% of circle rate or agreement value, whichever is higher). Pay via online challan on state treasury portal. Book appointment at Sub-Registrar office. Both buyer and seller must be present with witnesses.
Mutation and Possession
After registration, apply for mutation (name change in municipal records) at local municipal office or tehsil. Collect keys and do possession walk-through. Transfer electricity, water connections to your name. Keep all original documents safely.
Documents Required
- ✓Aadhaar Card (buyer & seller)
- ✓PAN Card (mandatory for transactions above ₹10 lakh)
- ✓Passport size photographs
- ✓Income proof (for home loan)
- ✓Bank statements (6 months)
- ✓Agreement to Sell
- ✓Previous sale deeds
- ✓Encumbrance Certificate
- ✓Occupancy Certificate
- ✓Property tax receipts
Official Government Portals
Common Questions
Is registration mandatory for property purchase?
Yes. Under Section 17 of the Registration Act, 1908, any immovable property transaction above ₹100 must be registered. Unregistered sale deeds are not legally valid and cannot be used as evidence in court.
Can NRIs buy property in India?
NRIs can buy residential and commercial property in India (not agricultural land/plantation/farmhouse) under FEMA regulations. They need NRE/NRO account for transactions and must file Form IPI-7 with RBI within 90 days.
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