Why Due Diligence is a Must Before Buying Property

30% of property disputes in India stem from inadequate due diligence. Whether you’re buying land, a house, or commercial space, proper verification can save you from costly legal battles and financial losses. Here’s why due diligence should never be skipped.

1. Avoid Legal Disputes & Ownership Issues

Critical checks:

  • Verify 30+ years of title chain at Sub-Registrar Office
  • Check for pending litigation in district courts
  • Confirm seller’s inheritance rights (if applicable)
  • Use digital tools to save car documents online as proof of residence during verification

Risk if skipped: You might buy disputed property without knowing.

2. Verify Property Measurements & Boundaries

Essential steps:

  • Compare actual land with municipal survey maps
  • Hire licensed surveyor for demarcation
  • Check for encroachments with neighbors

Jaipur example: Many properties in Jagatpura have mismatched RSR vs actual measurements.

3. Confirm Approved Land Use & Zoning

Must-verify documents:

Document Where to Check
Master Plan JDA office (for Jaipur)
Conversion Order Tehsildar Office

 

4. Check for Hidden Liabilities

Overlooked aspects:

  • Outstanding property tax (verify at municipal corporation)
  • Pending utility bills (electricity/water)
  • Society maintenance dues (for apartments)

Due Diligence Checklist

✅ Title Deed Verification

✅ Encumbrance Certificate

✅ Property Tax Receipts

✅ Land Use Approval

✅ Physical Survey

✅ Occupancy Certificate

5. Prevent Financial Fraud

Red flags to watch for:

  • Seller avoiding face-to-face meetings
  • Multiple Power of Attorneys in transaction history
  • Recent ownership changes without clear reason
  • Price significantly below market rate

Invest in Due Diligence, Save Future Headaches

A ₹5,000-10,000 verification today can prevent ₹5-10 lakh losses tomorrow.

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