Luxury villa buyer: 7-step due diligence before you sign

At the ₹3 Cr+ tier, the seller and their agent are polished. Your due diligence needs to match the stakes.

Step 1 — Engage a property lawyer

₹25K – 50K for a title opinion is the cheapest insurance you'll ever buy. Don't use the seller's lawyer.

Step 2 — EC for 30 years + mother deed

Trace the chain of title from the original khatedar. Any gap is a red flag.

Step 3 — Zoning + land conversion

Agricultural land repurposed for residential needs a DC conversion order. Missing order = future demolition risk.

Step 4 — Society approvals

Fire NOC, environmental clearance for large developments, BESCOM / TSSPDCL power sanction, BWSSB water sanction.

Step 5 — Stamp duty + registration calc

Karnataka: 5% + 1% registration fee + cess. Budget 7% of sale price over and above the sticker price.

Step 6 — Possession vs. OC

Never take physical possession without Occupancy Certificate (OC). Tax and utility connections snag without it.

Step 7 — Inventory + snag list at handover

Photograph everything at handover. Builder's defect liability is typically 5 years under RERA but enforcing it takes proof.

Safety checklist for everyone in this deal

A property transaction in India touches a lot of hands. Here's what each party should insist on before money moves.

Buyers

• Verify title through a 30-year EC (Encumbrance Certificate) and cross-check the mother deed.
• Confirm RERA registration (where applicable) — the RERA number should match the one on the state RERA website.
• Never transfer a token amount on WhatsApp alone; insist on a receipt and a simple written agreement.
• Walk the property in person. Photo-only deals are a common vector for listing fraud.

Sellers

• Keep originals in a locker. Only ever share certified copies with prospective buyers.
• Insist on payment via cheque / NEFT / RTGS — avoid cash-heavy deals, especially above ₹2 lakh (20,000 cash cap for each leg under Section 269ST).
• Never hand over vacant possession until the sale deed is registered and the registration receipt is in your hand.

Agents, agencies and brokers

• Register under the state RERA (where brokering RERA-covered projects) and display your registration number on listings.
• Keep a written, dated engagement letter with the client covering brokerage %, exclusivity and a cancellation clause.
• Do a KYC on both sides before the first site visit — PAN + Aadhaar, photo ID match — and hold a copy on file.
• Never pocket earnest money directly; let it flow buyer ↔ seller and invoice the brokerage separately.

Owners

• Update your property tax every year — BBMP / MCD / BMC arrears follow the property and surface at sale time.
• On rental, include a 2–3-month notice period, a detailed inventory with photos, and a clause on painting + deep-cleaning at exit.
• Pay the rental TDS if you're a tenant paying over ₹50,000/month (Section 194-IB). Owners should chase the Form 16C from their tenant.

Final tip: when in doubt, walk away. The best real-estate deals are the ones you don't rush.