Checklist Before Signing a Property Sale Agreement

Buying a property is one of the biggest investments in life. However, many disputes arise because buyers or sellers do not verify documents or take proper legal precautions before signing the sale agreement. To avoid years of litigation and financial loss, here is a simple checklist every buyer must follow before finalizing the deal.

1. Verify the Title of the Property

Ensure that the seller is the legal owner. Check title deeds, mutation records, and past ownership documents. If there are multiple heirs or owners, confirm that all have given consent.

2. Check for Encumbrances

Verify from the Sub-Registrar’s office whether the property is free from loans, mortgages, or court cases. Any pending encumbrance may affect your ownership rights.

3. Ensure Proper Approvals & Permissions

If the property is part of a colony, apartment, or commercial building, ensure that layout plans and building approvals are in place. Unauthorized constructions may lead to demolition orders.

4. Verify Property Tax & Dues

Check whether all municipal taxes, electricity bills, and water charges are paid. Unpaid dues may fall upon the buyer after purchase.

5. Double Agreements & Pending Disputes

Sometimes, a seller enters into multiple agreements for the same property. This creates court disputes where a genuine buyer may suffer. Legal verification by an advocate helps identify such risks.

6. Confirm Physical Possession & Boundaries

Cross-check the physical area of the property with the documents. Visit the site to ensure there is no illegal possession or encroachment.

7. Include Clear Terms in the Agreement

The sale agreement should mention:

• Sale price and payment schedule

• Time for execution of Sale Deed

• Responsibility for pending dues and taxes

• Penalty clauses for default by either party

8. Take Legal Opinion Before Signing

Just like banks take a legal opinion before granting loans, a buyer must consult an advocate before signing. A legal opinion not only ensures the property is clear but also strengthens your case if disputes arise later.

✅ Takeaway: A property deal without legal due diligence can lead to years of court battles. Always seek an advocate’s legal opinion before signing a sale agreement to safeguard your rights and investment.