Property Buying Red Flags and a Step-by-Step Checklist
Updated 26 October 2026
Most expensive mistakes in property show warning signs early. Use these answers to spot them, and the checklist at the end to work through a purchase in order.
What are the red flags when buying a property?
No RERA number for a new project, a demand for more than 10% before a registered agreement, payment requested in cash or to a personal account, a seller who won’t show original documents, a price far below the area, a “ready” flat without building-use permission, and pressure to pay today.
What is the safest way to pay for a property?
Bank transfer or cheque only, to the account named in the agreement (for a new project, the project’s RERA account), with a receipt for every payment. Never pay cash or into an agent’s personal account.
What is an encumbrance certificate or title search?
A record of registered transactions on a property, such as sales and mortgages, over a period. A lawyer usually searches the Sub-Registrar records for the last 30 years. It shows registered loans or claims, but not every dispute.
What is the difference between freehold and leasehold property?
Freehold means you own the property outright with no time limit. Leasehold means you hold it for a fixed term under a lease, and a sale may need the lessor’s consent. Check the remaining term before buying a leasehold property.
How much money should I save before buying a home?
The down payment (at least 10–25% of the price), plus stamp duty and registration, the builder’s extra charges, moving and furnishing, and an emergency fund of about six months’ expenses.
What should I inspect when visiting a resale flat?
Seepage and cracks, water pressure, wiring, doors and windows, sunlight and ventilation, noise, parking, the lift and common areas, and the society’s maintenance record. Visit once on a weekday evening as well.
Can I trust property documents shared on WhatsApp?
Only as a first look. A photo or PDF can be edited. Check the RERA record yourself on the official website, ask to see the originals, and have a lawyer verify them against the Sub-Registrar records before you pay.
Is it safe to pay a booking amount before visiting?
No. Visit the project, check the RERA registration, get the booking terms and refund conditions in writing, and pay only by bank transfer to the developer’s account.
Buying checklist, in order
- Budget: down payment, loan eligibility, and the total cost with taxes and charges.
- Shortlist: area, commute, schools, and the price per sq.ft of carpet area.
- Project checks: the RERA record, the builder’s track record, a site visit.
- Legal checks: title and land records, approved plan, building-use permission for a ready flat, and a lawyer’s review.
- Agreement: price sheet, payment plan, possession date, specifications and the penalty for delay.
- Payments: bank transfer only, with a receipt for each payment.
- Registration: stamp duty and registration at the Sub-Registrar.
- Possession: inspect, list defects in writing, take the keys and documents.
- After: property tax name transfer, society membership and utilities.
This guide is general information, not legal or financial advice. Rules and charges change; confirm them with the official source or a professional before you commit.