Sale deed checklist: what to verify before you buy
We reviewed 500+ sale deeds this year. What to check in the title chain, the sellers, the loan position, UDS and TDS before you pay a token amount.
A sale deed is the registered instrument that transfers ownership of a property from seller to buyer. In India it does not prove the seller owned what they sold. Registration records that a transaction happened; it does not certify title. Before paying a token amount, verify five things: the title chain behind the deed, who is legally entitled to sign, the outstanding loan position, the Undivided Share of Land, and the TDS rate that applies to you.
If you are buying a resale flat, you are probably looking at a thick stack of paper called the sale deed. Most buyers check the spelling of their name, see the “Registered” stamp, and assume they are safe.
They are not. Property disputes make up a large share of civil litigation in India, and those cases routinely run for decades. The reason is almost always the same: buyers do not realise how weak their ownership actually is.
Does a registered sale deed prove ownership in India?
The biggest myth is that the government guarantees you own your home. It does not. India uses a presumptive title system.
Think of the Sub-Registrar’s office as a library. If someone sells you a book and you file a note at the library saying the transaction happened, the librarian stamps it — but the librarian never checked whether the seller owned the book. If someone proves years later that it was taken in 1995, the library does not help you. You lose, and you litigate.
You are not buying a property. You are buying a history. That history is the title chain, and it is what you should actually be reading.
Who are you really buying from, and who has to sign?
Deals collapse because of people at least as often as because of paperwork.
- A couple. Speak to both. We have seen deals fail because a couple was separating and one party was selling without the other’s agreement.
- Siblings or in-laws. Check that everyone is aligned. If they are not, the deal stalls at the registrar’s office.
- Friends who bought together. Ask why. Partnerships end, and you do not want to inherit the dispute.
- Senior citizens and heirs. Get an NOC from adult children. Some projects carry mandatory service agreements a buyer may have to take over.
- Anyone signing under a Power of Attorney. Ask for a life certificate. A GPA can be affected if the owner has died.
What should I check if the seller has an existing home loan?
Do not assume the bank has taken care of everything because a loan exists.
Ask for the last six months of EMI statements. If the seller has missed the last two, the loan may be approaching NPA status, and another missed month can complicate both the property and the execution of the deed.
If the seller is closing the loan with their own funds, execute the Agreement for Sale only after they provide a foreclosure letter. If your funds are being used, check whether your bank permits a loan transfer — not all do.
Public sector banks generally require a discharge or reconveyance deed to be executed before the sale deed. Where there are co-applicants and one has given a GPA, the bank will usually want a separate GPA in its own format.
If the loan is from a very small or unfamiliar NBFC, ask why. Sometimes it indicates that a larger bank declined the property’s title.
UDS and TDS: the two technical landmines
Undivided Share of Land. You own a slice of the land through your UDS. Check the arithmetic. If the UDS in the deed does not match the actual calculation, the flat’s future value can be affected.
TDS. Above ₹50 lakh, the buyer deducts 1% TDS under section 194-IA of the Income-tax Act, subject to the applicable rules. Where the seller’s PAN is not linked to Aadhaar, a higher rate can apply — and if you deducted 1%, you can be liable for the difference. Verify the applicable rate before you deduct.
How do I check Khata, mutation and encumbrance records online?
The deed in your hand may say the owner is Mr Sharma. What does the government record say?
Check the Khata and mutation records online. Khata and property tax records for BBMP limits are available from the BBMP property tax portal, and revenue records outside them through Bhoomi. If the seller never updated the digital records after buying, that gap needs explaining before you proceed.
Then get an encumbrance certificate covering at least 20 years — think of it as a credit report for the house. In Karnataka you apply for it through Kaveri Online Services. A registered mortgage or court attachment will show up there.
The Jumbo takeaway
Stop falling in love with the marble and the view. Fall in love with the title chain.
A resale property is not just the flat you can see. It is the history behind it, the people selling it, the loans attached to it and the records supporting the ownership. When property disputes account for so much of civil litigation, being “presumptive” about your safety is an expensive habit.
Do not just check that the sale deed is registered. Understand what sits behind it.
This article is for general information and education only. It is not legal, tax, financial or investment advice. Requirements vary by property and transaction — verify the documents independently and take advice from a qualified professional before proceeding.
Frequently asked questions
Does registering a sale deed guarantee ownership in India?
No. India uses a presumptive title system. Registration records that a transaction happened; it does not certify that the seller had good title to transfer. If an earlier claim surfaces later, the registration alone will not protect you — which is why the chain of ownership behind the deed matters more than the stamp on it.
How many years should an encumbrance certificate cover?
Ask for at least 20 years, and 30 where you can get it. An EC only reflects registered transactions, so unregistered agreements will not appear on it no matter how long a period you request.
What TDS do I deduct when buying a property above ₹50 lakh?
The buyer deducts 1% TDS, subject to the applicable rules. Where the seller's PAN is not linked to Aadhaar, a higher rate can apply. If you deduct 1% when a higher rate applies, you can be left liable for the difference, so verify the applicable rate for your specific transaction before deducting.
What is Undivided Share of Land and why does it matter?
UDS is your proportionate interest in the land beneath the building. It affects your long-term ownership interest, including redevelopment and association rights, and is used by resale buyers and banks when evaluating a flat. Check that the UDS stated in the deed matches the actual calculation.
What should I check if the seller has an existing home loan?
Ask for the last six months of EMI statements to understand the repayment position, and agree a written timeline for closing the loan and obtaining the foreclosure letter. Public sector banks typically require a discharge or reconveyance deed to be executed before the sale deed.