The Essential Legal Checklist Before Buying Property in Bangalore

Purchasing property is one of the most significant investments most people make in their lifetime. In a dynamic real estate market like Bangalore, ensuring that your investment is legally secure is paramount. This comprehensive checklist covers all essential legal aspects you should verify before finalizing any property purchase.

Title Verification

The foundation of any property transaction is clear title—legal ownership free from disputes or encumbrances.

1. Title Deed Examination

• Original Documents: Verify the chain of title documents for at least 30 years
• Ownership History: Trace all previous owners and ensure proper transfer documentation exists
• Inheritance Cases: Check for Will/Succession Certificate/Partition Deed if property was inherited
• Power of Attorney: If the seller is using Power of Attorney, verify it's registered and still valid

2. Encumbrance Certificate

• Obtain an Encumbrance Certificate (EC) for at least 13 years
• The EC reveals any registered transactions, mortgages, or legal claims on the property
• Verify that the property is free from loans, mortgages, or other financial encumbrances
• Check for any registered agreements that might affect ownership rights

3. Property Tax Records

• Verify that all property taxes are paid up to date
• Obtain property tax receipts for at least the past three years
• Check if the property has a unique Property Identification Number (PID)
• Ensure the tax records match the property dimensions and location

Land Verification

For all properties, but especially independent houses, villas, and plots, land verification is crucial.

1. Land Records

• RTC (Record of Rights, Tenancy and Crops): For properties that were agricultural land
• Khata Certificate and Extract: Verify the property is listed in municipal records
• Survey Numbers: Ensure survey numbers in documents match actual property
• Conversion Certificate: If land was converted from agricultural to residential use

2. Layout Approvals

• Check if the layout is approved by BDA/BMRDA/BIAPPA or relevant authority
• Verify that the layout plan includes provisions for roads, parks, and civic amenities
• Ensure the property doesn't fall under any land acquisition notifications
• Check for any pending litigation regarding the layout approval

3. Boundary Verification

• Physical verification of property boundaries with survey report
• Check for any encroachments on the property
• Verify access roads and rights of way
• Ensure boundary measurements match those in the sale deed

Building Verification

For apartments, villas, or constructed houses, these additional checks are necessary.

1. Building Approvals

• Sanctioned Plan: Verify the building is constructed as per approved plans
• Commencement Certificate: Issued before construction began
• Occupancy Certificate: Issued after construction completion, certifying the building is fit for occupancy
• Completion Certificate: Confirms the building complies with approved plans

2. Building Compliance

• Check for any unauthorized constructions or deviations from approved plans
• Verify compliance with building bylaws regarding setbacks, height, etc.
• Ensure the building has necessary fire safety clearances
• Check for structural stability certificate for older buildings

3. Apartment-Specific Documents

• Undivided Share of Land (UDS): Verify your share of the land is clearly defined
• Association Documents: Articles of Association, bye-laws, etc.
• Sinking Fund Details: For future major repairs and renovations
• Parking Allocation: Ensure parking spaces are clearly assigned in documents

Statutory Approvals

Various government approvals are required for legal property transactions.

1. RERA Verification

• Check if the project is registered under RERA (Real Estate Regulatory Authority)
• Verify the RERA registration number and check details on the RERA website
• Ensure the project hasn't been flagged for any violations
• Check the promised delivery date and current status

2. Environmental Clearances

• Environmental clearance for projects above certain size
• NOC from Pollution Control Board if required
• Lake buffer zone compliance (if property is near a lake)
• Clearance from Fire Department for high-rise buildings

3. Airport Authority Clearance

• Height clearance from Airport Authority for properties in flight paths
• Verify if the property falls under any airport zonation restrictions
• Check for any sound pollution issues if near airport

Utility Connections

Verify the status and legality of all utility connections.

1. Water Supply

• BWSSB connection or borewell permission
• Water connection charges payment proof
• Rainwater harvesting compliance
• Sewage treatment plant approvals for larger developments

2. Electricity

• BESCOM connection status
• Transformer and electrical equipment approvals
• Payment of all electricity charges
• Power backup systems approval if applicable

Financial and Transactional Checks

1. Loan Verification

• No Objection Certificate (NOC) from banks if the property was mortgaged
• Loan repayment status if seller had a home loan
• Ensure all loan-related documents are properly discharged
• Check for any income tax attachments on the property

2. Payment Structure

• Verify if the payment plan complies with RERA guidelines
• Check if construction-linked payment plans are tied to actual progress
• Ensure all payments are made through banking channels
• Verify GST implications and payment responsibility

3. Agreement Documentation

• Sale Agreement: Should contain all terms and conditions clearly
• Absolute Sale Deed: Final document transferring ownership
• Khata Transfer: Process to transfer property tax records to your name
• Registration: Ensure proper registration of all documents at Sub-Registrar's office

Special Cases

1. Agricultural Land

• Conversion to non-agricultural use approval
• Compliance with Karnataka Land Reforms Act
• Verification of land ceiling act compliance
• Check for any tenancy rights on the land

2. Joint Development Properties

• Joint Development Agreement verification
• Developer's rights and obligations
• Landowner's consent and rights
• Clear demarcation of shares

3. Leasehold Properties

• Lease terms and duration
• Transfer permission from lessor
• Lease premium and rent payment status
• Renewal terms and conditions

Legal Opinion

After collecting all documents, it's highly recommended to:

1. Hire an experienced real estate attorney to review all documents
2. Obtain a written legal opinion on the property's title clarity
3. Consider title insurance if available
4. Keep all original documents and legal opinions safely preserved

Post-Purchase Legal Steps

Once you've completed the purchase, don't forget these important steps:

1. Property Registration: Ensure the sale deed is registered at the Sub-Registrar's office
2. Khata Transfer: Transfer the khata to your name in municipal records
3. Utility Transfers: Change all utility connections to your name
4. Society Registration: If applicable, register with the apartment association
5. Will/Nomination: Create a will or nomination for the property

Conclusion

While this checklist may seem exhaustive, each verification step is essential to ensure your property investment is legally secure. The cost of legal due diligence is minimal compared to the potential financial and emotional stress of property disputes.

Consider engaging professionals for this process:

• A reputable real estate lawyer
• A property surveyor
• A document verification specialist

Remember that in real estate transactions, thorough legal verification is not an expense but an investment in peace of mind. Taking the time to complete these checks will protect your investment and ensure that your dream home doesn't turn into a legal nightmare.

By following this comprehensive checklist, you can proceed with your property purchase in Bangalore with confidence, knowing that you've taken all necessary precautions to secure your investment legally.