How far back should the chain of title be traced?

Thirty years is the conventional period examined for residential property in India, because it comfortably exceeds the limitation period for most adverse claims. Where the documents do not go back that far, that is itself something to weigh.

Is a token amount refundable if I find a problem?

It depends entirely on what you signed. Many receipts and agreements to sell provide for forfeiture on the buyer's default without carving out defects in the seller's title. Read the forfeiture clause before paying, not after.

The seller says the original documents are with the bank. Is that normal?

Yes, where a loan is outstanding against the property, and it is not by itself a concern. What you need is a written path to the release of the originals and the discharge of the charge, timed so that it happens before or simultaneously with your final payment.

Do I need a lawyer if the property is in a reputed project?

The reputation of the developer does not tell you about the specific unit, its allocation, the approvals actually obtained, or the terms in the agreement you are being asked to sign. It reduces some risks and none of the documentary ones.

← Insights7 min read

The documents to ask for before you pay a token amount

A token amount is the moment your leverage peaks and then begins to fall. Everything below is easier to obtain before you pay it than after.

There is no universal list. What a plot needs differs from what a builder floor needs, and what applies in Delhi differs from Gurugram. But the following covers most residential purchases, and a seller unwilling to produce items from it is giving you information worth having.

Title and the chain behind it

Current sale deed: The registered instrument by which the seller acquired the property. Check the name, the property description, the boundaries and the area against every other document you are given.
Prior deeds: The preceding conveyances, ideally covering the last thirty years. What you are looking for is continuity: each transfer explaining how the property passed from the previous owner to the next, with no unexplained jumps.
Conversion or freehold documents: Where the property was originally leasehold, the conversion deed and the accompanying no-objection. Leasehold property carries transfer restrictions that freehold does not.
Where title came by inheritance: The will and its probate where required, or the succession certificate, or the registered relinquishment or family settlement. An estate divided only by verbal agreement among siblings is not divided.

Encumbrance and dues

An encumbrance certificate for the longest period available, showing registered charges over the property.
Where a loan was taken against the property, the sanction letter, the current outstanding, and a written path to release of the original documents and the charge before or at completion.
Property tax receipts, current and preceding years, with confirmation that no demand is outstanding.
Electricity, water and, in a colony with a residents' association or maintenance body, maintenance dues cleared to date.

Construction and approvals

Sanctioned building plan, and a comparison against what actually stands on the plot.
Completion or occupancy certificate, where the local body issues one for this category of construction.
For a project property, the RERA registration and the details filed on the state RERA portal. Registration numbers are searchable and worth checking directly rather than taking on trust.
For a plot, the layout approval and confirmation of land use, since a residential structure on land not zoned for it is a problem that does not resolve itself.

The parties

Identity: Photo identification and PAN for every person who will sign, matched against the names on the title documents. A single letter of difference between the deed and the identification is worth resolving in advance.
Everyone who must sign: Where the property is jointly owned, every co-owner must be party. Where an owner has died, every legal heir. A sale executed by three of four heirs conveys three-quarters of the property.
Any power of attorney relied on: The instrument itself, its registration where required, and confirmation that the grantor is alive and the power unrevoked at the date of execution.
Marital and minority interests: Where a minor holds an interest, court permission is generally required for a sale. Where a property is ancestral or coparcenary, the position on who must consent is more involved than it appears.

Read the draft agreement to sell before signing it, not the day of registration. Forfeiture terms, the timeline for completion, who bears which cost, and what happens if a defect surfaces after payment are all negotiable at draft stage and effectively fixed afterwards.

What this checklist does not do

Collecting documents is not the same as verifying them. A document can be complete, internally consistent and still not establish what it appears to. Formal searches at the sub-registrar's office, a title certificate from counsel, and a registered valuer's report all sit outside what a documentary review covers, and there are files where they are warranted. The purpose of the list above is to get you to the point where you know whether they are.

Common questions

How far back should the chain of title be traced?: Thirty years is the conventional period examined for residential property in India, because it comfortably exceeds the limitation period for most adverse claims. Where the documents do not go back that far, that is itself something to weigh.
Is a token amount refundable if I find a problem?: It depends entirely on what you signed. Many receipts and agreements to sell provide for forfeiture on the buyer's default without carving out defects in the seller's title. Read the forfeiture clause before paying, not after.
The seller says the original documents are with the bank. Is that normal?: Yes, where a loan is outstanding against the property, and it is not by itself a concern. What you need is a written path to the release of the originals and the discharge of the charge, timed so that it happens before or simultaneously with your final payment.
Do I need a lawyer if the property is in a reputed project?: The reputation of the developer does not tell you about the specific unit, its allocation, the approvals actually obtained, or the terms in the agreement you are being asked to sign. It reduces some risks and none of the documentary ones.

This is a general explanation, not advice on your property. Procedure, rates and thresholds differ by state and municipality and change over time. Kabir Real Estates provides advisory and due-diligence assistance and does not issue title certificates or formal legal opinions. Where a matter needs one, we will tell you so.

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