Key points
- Trace the chain of title for at least 30 years and confirm each transfer was by registered deed; general power of attorney sales are not valid transfers after Suraj Lamp (2011).
- Check whether the land is DDA, L&DO or private freehold, and whether a leasehold property has been converted to freehold.
- For a new project, confirm RERA registration; for a resale flat, obtain the society NOC and verify mutation and dues.
Step by step
- Obtain and read the title documents
Ask for the original allotment or first sale deed, all subsequent sale deeds, the conveyance or freehold conversion, and the seller's proof of identity. Get certified copies from the Sub-Registrar to compare. - Search for encumbrances
Obtain a non-encumbrance certificate or search the Sub-Registrar's records for mortgages, attachments and prior agreements. Check the CERSAI register for bank charges and search court records for litigation. - Verify land status
Confirm with the DDA, L&DO or MCD whether the plot is leasehold or freehold, whether conversion charges are paid, and whether the colony is regularised. Unauthorised construction and unauthorised colonies carry demolition and registration risks. - Check sanction and completion
Obtain the sanctioned building plan and completion or occupancy certificate. For builder floors, verify the floor-wise sanction and that the seller has the right to sell that floor. - Society and dues
For cooperative group housing, obtain the society's NOC, share certificate and a no-dues letter. Check property tax, electricity and water dues. - Agreement, payment and registration
Sign an agreement to sell with a modest advance and conditions precedent. Pay the balance against execution and registration of the sale deed. Stamp duty in Delhi is 6% for men, 4% for women and 5% for joint ownership, plus 1% registration fee, on the higher of circle rate and consideration. - Mutation
Apply for mutation in the MCD or DDA records after registration so that the property stands in your name for tax and future sale.
Power of attorney sales
Many older Delhi transactions were done through a general power of attorney, agreement to sell and will. The Supreme Court in Suraj Lamp v. State of Haryana (2011) held these do not transfer title. If the seller holds only such documents, the chain must be regularised by a conveyance from the recorded owner before you buy.
TDS and other formalities
For consideration of 50 lakh rupees or more, the buyer must deduct 1% TDS under Section 194-IA and deposit it in Form 26QB. Where the seller is a non-resident, Section 195 applies and the rate is far higher.
Frequently asked questions
Is a property in an unauthorised colony safe to buy?
Registration of sale deeds in many unauthorised colonies is now permitted through the PM-UDAY scheme, but title remains weaker and construction may be unsanctioned. Take advice on the specific colony.
Can I buy a leasehold DDA flat?
Yes, but transfers of leasehold property need DDA permission and attract unearned increase; conversion to freehold before purchase simplifies everything.
Related practice area: Property, Real Estate & Waqf
This article is for general information and does not constitute legal advice. Laws, rules and limitation periods change and depend on the facts; please take advice on your own situation before acting. Reading this article does not create a lawyer-client relationship with Akhtars Legalitarian.