Buying Property in India: Do’s and Dont’s

by Darwin on June 27, 2014


I wrote about my trip to India a while back and I continue to be amazed by the economy and prospects there.  Buying property in India has always been auspicious. In fact, buying your own home is a dream for every middle-class and lower middle-class man or woman. Most of them work extremely hard and save as much as possible to make their dream come true.  The government does chip in with affordable interest rates and flexible rules to help.

However, website points out that India is an unregulated market for real estate.  Developers buy land tracts, and while they do have to register the property with the government, there is no actual verification process. Other legal processes like sale agreements, Panchayat regulations, squatter rights, pending legal cases and agricultural land regulations are not all recorded with state or national authorities, leading to a fair amount of confusion. As a result, most first-time homebuyers tend to tread very carefully while buying their homes or properties.

Research the Area states that India is a vast country with several local real estate markets that are seeing rapid development. In North India, the NCR region in particular is seeing rapid expansion and interest due to the development of an economic corridor from Delhi to Mumbai. The highway will span four states, and investors can choose from a several major Tier II and Tier III cities located along the highway. In large Tier I cities like Chennai, Bangalore, Hyderabad, Pune and Kolkata, there is an inventory overhang due to already high property rates. These cities are now expanding into the outskirts, providing homeowners with affordable housing. points out areas in south India like Dwarkanagar in Andhra Pradesh; Mihand near Nagpur, Maharashtra; Vytilla in Kochi, Kerala; and Peelamedu in Coimbatore, Tamil Nadu are all investment hotspots as Tier II and Tier III cities. All these cities are facing rapid infrastructure development, and proactive local authorities are working to develop and promote the cities as investment areas. For investors, this is great since they can pick from affordable housing in lovely cities that are located within commuting distance of Tier I cities. Before investment, it pays to research the area and find local and national policies that will directly benefit areas in different parts of India.

Always Start with a Trusted Developer

After completing your research, start your search for a trusted developer. The best place to start is with the CREDAI website.  CREDAI refers to The Confederation of Real Estate Developers’ Associations of India (CREDAI) and it is a private association of builders and real estate developers in India. Large builders like the Unitech Group are trusted names in India since they are backed by huge corporations that deliver quality property on time and within an affordable price range. You can use the website to find a developer for properties in an area you are looking for. However, urges buyers to always take the time to get to know the builder first. Make as many inquiries into the reputation of the builder and the structures they make before investing in the property.

Read Up on the Paperwork

According to, this is probably the most complex part of the process. Apart from conventional sale agreements and property deeds, there are several more documents and it can be a little overwhelming.


  • Check all paperwork. For example, the title of the property may be sole ownership or it might have been joint ownership. Both owners’ signatures are required on the sale deed. In case of any doubt, you can get the paperwork from the local sub-registrar’s office.  Make sure you verify the paperwork with a local lawyer or attorney and check it against the originals.
  • If possible, ask for a no-encumbrance certificate for the last 30 years from the owner. This will verify that there are no liens on the property and confirm the legal ownership of the property.
  • Check with the local panchayat rulings, the Urban Land Acts law and the local corporation office to verify that the property is build legally on appropriately owned property. You can also put in an application to the local Corporation or Municipal Office to check the state of the property.

A good developer will usually have all these documents ready for you and you are welcome to go through them at any time. Authentic property developers will also show you a demo house and encourage you to verify the documents before purchase. They will also help you get loans from nationalized banks. This is good as it means that the bank has already verified the documents, they have approved the project as legal and aboveboard, and they are willing to sanction loans for the home.


Once you have decided to purchase the property, you will have to sign a sale deed that clearly indicates the intent to purchase, the amount, payment process and registration costs. Always hire an attorney and an accountant to help you at this stage with the paperwork, and payment process. After the property is sold, the seller must execute the title transfer to the buyer, and register the property with the local sub-registrar. The seller must be present for this process as photographs are taken immediately, and the photos are placed on the registration document. This is a valuable process of authenticating the sale process and it ensures legal possession of the property. If you are taking a loan, the bank will require the paperwork and it will ensure that you follow the payment process to have a clear title to the property.

Investment website states that property market in India is great at present. Affordable properties and low interest rates are available and most investors or first time homebuyers will find something in their budget range. However, research is necessary to make sure about  the legality of the property and the sale process.


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