Property due diligence checklist: 40 things to verify before you pay

What due diligence really means

Due diligence is the legal and practical investigation a buyer does before completing a property purchase. The phrase comes from the legal principle that a buyer is expected to take reasonable steps to verify what they are buying — and is largely barred from later complaining about defects they could have discovered with reasonable investigation.

In Indian property transactions, due diligence falls into seven categories: legal title, encumbrances, identity, statutory approvals, physical reality, financial reasonableness, and ongoing obligations. Below is the 40-point checklist covering all seven.

Section 1: Legal title (10 points)

1. Sale deed inspection: Original sale deed in seller's name, properly registered, with original signatures of both parties.

2. Chain of title: Continuous chain of ownership for at least 30 years, with every transfer registered. No gaps, no unregistered intermediate transactions.

3. Mother deed: The oldest deed available in the chain. Establishes the property's existence and original ownership.

4. Encumbrance Certificate (30-year): Obtained directly from sub-registrar / ReLIS / Kaveri Online / state portal — not via seller. Shows every registered transaction on the property.

5. Mutation records: Latest mutation in seller's name on village / municipal records (Bhulekh, Bhoomi, MahaBhumi, ReLIS, depending on state).

6. Khata / Patta certificate: Current property tax record showing seller as owner.

7. Survey records: Cadastral map showing the property's boundaries and survey number. Cross-check with sale deed schedule.

8. Inheritance verification: If property was inherited, legal heir certificate identifying all heirs and a properly executed partition deed if subdivision occurred. All heirs' signatures present.

9. Power of attorney verification: If selling on POA, the POA is valid, properly registered, not revoked, and grants explicit authority to sell. The principal is reachable for confirmation.

10. No litigation: eCourts search by seller's name and property location shows no active civil cases. State High Court order portals also checked.

Section 2: Encumbrances and dues (5 points)

11. Bank loan status: If property is mortgaged, the loan amount, lender, and clearance terms documented. NOC from bank obtained before final payment.

12. Property tax: Latest paid receipt from local Panchayat / Municipality. No arrears.

13. Water and electricity dues: Latest bills paid. No outstanding amounts that transfer to new owner.

14. Society dues (for flats): Maintenance and society fees paid up to date. NOC from society obtained.

15. Income tax: Seller's income tax position regarding the property (for high-value transactions, Section 281 NOC may be required).

Section 3: Statutory approvals (8 points)

16. Land use classification: Property is on residential land (or whatever its declared use is). Conversion has been completed if originally agricultural.

17. Zoning compliance: Master plan classification matches actual use. No violations.

18. Building approval: Sanctioned plan from local development authority (BDA, MDDA, HRDA, BMC, etc.) matches actual built structure. No unauthorised construction.

19. Completion certificate: Issued by local body confirming construction is complete and compliant.

20. Occupancy certificate: Issued confirming the building is fit for occupation.

21. RERA registration (for new projects): Project is RERA-registered. Builder's registration is active, not lapsed.

22. Fire safety: For buildings above 15m (typically 4+ floors), fire NOC from local fire department.

23. Environmental clearance: For large projects, EC from State Environment Impact Assessment Authority where required.

Section 4: Seller identity and authority (5 points)

24. PAN verification: Seller's PAN card validated, name matches sale deed exactly.

25. Aadhaar verification: Aadhaar matches PAN and sale deed name. Photo verified against in-person identity.

26. For company sellers: MCA21 record shows company is active, not struck off. Directors authorising sale have valid authority.

27. For partnership / LLP sellers: Partnership deed reviewed, all partners' consent to sale.

28. For Trust-owned properties: Trust deed reviewed, sale within trustees' authority, beneficiary consent obtained where required.

Section 5: Physical and geographic verification (6 points)

29. Site visit: Property physically inspected. Boundaries match cadastral map.

30. Access road: Public road access verified. Width and surface adequate. No encroachment.

31. Flood risk: Property location overlaid against historical flood maps (ISRO Bhuvan, CWC, state disaster management). Not in a designated flood zone.

32. Landslide / subsidence risk: For hilly states, GSI landslide susceptibility map checked.

33. Seismic zone: BIS seismic zone classification known. Construction is appropriate for zone.

34. Neighbourhood verification: Adjacent properties match descriptions in deed. No disputed boundaries with neighbours.

Section 6: Financial reasonableness (4 points)

35. Comparable sales: At least 6 recent sales of comparable properties within 2km analysed. Asking price within reasonable range.

36. Stamp duty and registration: Total stamp duty and registration cost calculated. Payable separately by buyer.

37. Other transaction costs: Brokerage, lawyer fees, society transfer fees, mutation charges, all itemised.

38. Capital gains tax (if reselling later): Understood. Indexed cost of acquisition documented.

Section 7: Documentation and signing (2 points)

39. Sale agreement before sale deed: Sale agreement signed before sale deed, with refund clauses for verification failures. Token amount paid against agreement only.

40. Final sale deed registration: Sale deed registered at sub-registrar office in presence of both parties, witnesses, and biometric verification. Original deed received the same day.

What to do with this checklist

For a residential purchase under ₹1 crore, a competent property lawyer in your city should be able to complete this checklist in 2–3 weeks at a fee of ₹15,000–30,000. The fee is recoverable several times over in the issues it surfaces.

For NRIs and time-pressed buyers, a digital pre-screen using a platform like propxpraman can identify most red flags within minutes, allowing you to decide whether to invest in a full lawyer-led process.

The propxpraman approach

Our platform automates 28 of these 40 checks using AI extraction and government database cross-referencing. Items requiring physical verification (site visit, neighbour interviews) or specialised legal opinion remain in the human layer — included in our Premium and NRI Concierge tiers via partner lawyers and local runners. Every claim in our report is cited to its source, so your eventual lawyer review is faster and cheaper.