Before buying a flat in India, check the ownership chain, loans and charges, approvals, tax dues and the seller's authority. For a new flat, add the builder's RERA registration and approvals. For an NRI buyer, add FEMA limits, banking route and TDS. Each case below has its own table.
Last updated: 6 November 2026
In short
- Resale: the title chain, an encumbrance certificate, and the society and tax records matter most.
- Under-construction: confirm RERA registration, sanctioned plan and the promised completion date.
- NRIs may buy residential and commercial property but not agricultural land, a farm house or plantation property (RBI).
- Pay through banking channels. Cash and travellers' cheques are not allowed for NRIs.
- Tax deduction (TDS) now runs under the Income-tax Act, 2025. Rates and thresholds change; check incometaxindia.gov.in or a chartered accountant.
Checklist 1: Resale flat
| Check | What to ask for | Why it matters |
|---|---|---|
| Ownership chain | All earlier sale deeds, gift or partition deeds, allotment letter | Shows the seller can sell |
| Encumbrance certificate | EC for your lawyer's or lender's search period, often 30 years | Shows registered mortgages and charges |
| Loan on the flat | Bank loan statement, NOC and original deed custody | A mortgaged flat needs the lender's release |
| Mutation and tax | Property tax receipts, khata or revenue record in the seller's name | Settle unpaid dues before you pay |
| Society records | Society NOC, share certificate, maintenance dues letter | Dues and transfer fees are common disputes |
| Approvals | Sanctioned plan, occupancy and completion certificate | A building without them can face civic action and loan problems |
| Litigation | Court, tribunal and RERA complaint search on the seller and project | A pending case about the property can affect the buyer |
| Seller identity and authority | PAN, Aadhaar, marriage and heir details; POA if any | Joint owners or heirs must sign |
| Possession | Visit, utility bills, tenant status | Occupants may have rights |
| Payment | Bank transfer; record the TDS step | Avoid cash |
A seller who acts through a power of attorney needs extra care. The Supreme Court held in Suraj Lamp & Industries v State of Haryana (11 October 2011) that a power of attorney, agreement and will arrangement does not itself transfer title to immovable property. Insist on a registered sale deed.
Related: what to check before buying property in India, flat buying checklist for Bangalore.
Checklist 2: Under-construction flat
| Check | What to ask for | Why it matters |
|---|---|---|
| RERA registration | Registration number; verify on the state RERA portal | Projects above the threshold must register before sale |
| Project status | Registered completion date, progress updates on the RERA portal, complaints | Shows delay history |
| Land title | Builder's title documents, development agreement, landowner consent | The builder may not own the land |
| Approvals | Sanctioned plan, commencement certificate, environment and fire clearances where needed | Work outside the plan is a legal risk |
| Encumbrance on the land | EC on the plot; lender NOC for any project loan | A project mortgage affects your flat |
| Agreement | Agreement for sale in the form your state's RERA rules prescribe; payment schedule tied to stages | Terms of delay compensation and carpet area |
| Builder track record | Past projects, delivery dates, RERA complaints, court cases | Best predictor of delivery |
| Possession documents | Completion or occupancy certificate (OC) before you take possession | Needed for utilities, loans and resale |
| Taxes | GST and stamp duty receipts as applicable | Keep for later |
RERA basics. The Real Estate (Regulation and Development) Act, 2016, section 3, requires registration of real estate projects. Section 3(2)(a) exempts a project where the land does not exceed 500 square metres or the apartments do not exceed eight, counting all phases. The appropriate government may lower that threshold, and authorities have read the exemption differently. Look up the project on the state portal, for example Karnataka RERA: https://rera.karnataka.gov.in (project status, complaints and agent search). Other states have their own portals. Check the exact numbers and rules for your state.
Approvals. Ask for the sanctioned plan, the commencement certificate and, at handover, the completion or occupancy certificate. Names differ by state and city. Compare the building on site with the plan.
Related: RERA registration and litigation check.
Checklist 3: NRI buyer
| Check | Rule or step | Why it matters |
|---|---|---|
| Who may buy | NRIs and OCIs may buy residential and commercial property | Per RBI Master Direction on immovable property under FEMA |
| What is not allowed | Agricultural land, plantation property and farm houses cannot be bought by an NRI or OCI | Excluded from the general permission |
| Inheritance and gift | The RBI direction sets separate rules for inherited and gifted property | Take advice before selling or gifting |
| Payment | Inward remittance through banking channels, or NRE, FCNR(B) or NRO account | Cash, foreign currency notes and travellers' cheques are not permitted |
| Spouse | A foreign-national spouse may jointly acquire one property with the NRI or OCI spouse | Marriage must be registered and have lasted at least two continuous years |
| Repatriation | Sale proceeds of residential property: repatriation limited to not more than two properties | Plan the exit before you buy |
| Title and approvals | Same checks as the resale and under-construction tables | Distance makes mistakes costly |
| Power of attorney | A trusted agent can sign if the POA is properly executed abroad, attested and registered where required | See below |
| Tax | TDS on payment; see below | Buyer carries the compliance duty |
Agricultural land. The RBI direction excludes agricultural land, farm houses and plantation property from NRI and OCI purchase. A farm house on a "converted" plot still needs a check of its land classification. Confirm with an advocate before paying a token.
Power of attorney. An NRI often appoints a relative to sign and register. The agent must act within the POA's terms. Do not let a POA stand in for a registered deed of sale. Have a lawyer draft the POA, attest it as required in the country of signing, and check whether the sub-registrar needs it registered.
TDS. From 1 April 2026 tax deducted at source runs under the Income-tax Act, 2025, which replaced the 1961 Act. The buyer deducts tax from the price. Two cases matter:
| Seller | Buyer's deduction | Notes |
|---|---|---|
| Resident seller, price above the value threshold | Deduction under section 393(1) of the 2025 Act | Reported on Form 141, Schedule B (Form 141 replaced Form 26QB) |
| Non-resident seller (NRI) | Deduction under section 393(2) of the 2025 Act, under different rules from resident sellers | From 1 October 2026 a resident individual or HUF buyer reports it on Form 141, Schedule E; the seller may apply for a lower-deduction certificate |
Rates and thresholds change, and the NRI rate depends on the seller's income and status. Check https://www.incometaxindia.gov.in or a chartered accountant before paying.
Related: property terms explained.
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This page is general information, not legal or tax advice. A local advocate and a chartered accountant should confirm the position for your case.
Frequently Asked Questions
What should I check before buying a resale flat in India?
Check the full ownership chain, an encumbrance certificate, the seller's loan status, property tax and society dues, and the approvals. Confirm all owners sign.
How do I check if an under-construction project is RERA registered?
Search the project on your state RERA portal using the registration number. Also read the registered completion date and any complaints.
Can an NRI buy agricultural land in India?
No, not by purchase under the general route. The RBI direction excludes agricultural land, farm houses and plantation property for NRIs and OCIs.
Can an NRI buy property through a power of attorney?
An agent can sign for an NRI if the POA is valid and covers the act. The sale itself still needs a registered deed, and the POA needs proper attestation.
Is TDS the same when buying property from an NRI?
No. A resident seller falls under section 393(1) of the Income-tax Act, 2025, and an NRI seller under section 393(2), with different rules. Rates and thresholds change, so check incometaxindia.gov.in or a chartered accountant before paying.
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