Home Buying Checklist for India: Legal Checks, Budget, Documents, RERA and Final Walkthrough

Buying a home is the largest purchase most families make, and mistakes are costly and hard to undo. Legal defects, delays and hidden charges cause far more trouble than a slightly high price. This checklist covers what to do in order, from setting a budget to taking possession, for both new and resale properties.

1. Set your real budget

• Keep total EMIs under about 40% of net income, and keep the down payment from draining your emergency fund. Check with the loan affordability calculator and read the home loan guide.
• Add the costs beyond the price: stamp duty, registration, GST on under-construction properties, brokerage, legal fees, maintenance deposits, parking, interiors and moving. These often add 8% to 15% or more of the price. Use the stamp duty calculator.
• Compare buying with renting using the rent vs buy calculator.

2. Choose location and type carefully

• Visit the area at different times of day. Check commute, water, power, schools, hospitals and noise.
• Ready-to-move properties have no construction delay risk, while under-construction ones are cheaper but riskier. New projects must be registered under RERA.
• Think about resale: location and builder reputation matter for future value.

3. Check the legal documents

Hire an independent property lawyer for a title search. It is a small cost compared with the price.

4. Investigate the builder

• Check completed projects and talk to residents about quality and maintenance.
• Search for litigation and complaints on the RERA and consumer court sites.
• Check the project's financial health, approvals and bank-approved status.
• Be cautious with heavy "pre-launch" discounts and offers that ask for large payments before registration.

5. Read the agreement carefully

• Agreement for sale should state the carpet area, price, payment schedule, possession date, penalty for delay and defect liability.
• Prefer a payment plan linked to construction stages, and not a plan with most of the payment upfront.
• Check parking, club and amenities charges, and the cost for maintenance deposit and corpus fund.
• Understand the cancellation and transfer clauses.
• Do not sign blank documents, and keep copies of everything.

6. Arrange finance and paperwork

1. Get pre-approved by two or three lenders and compare costs with the loan comparison calculator.
2. Pay token money only with a written receipt or agreement.
3. Pay the builder from your bank account, not in cash.
4. Register the agreement on time and pay stamp duty correctly. Some states give concessions to women buyers.
5. Understand tax benefits, but do not buy only for tax savings.

7. Inspect before possession

• Compare the flat with the sample and agreement: carpet area, fittings, flooring, doors, windows and balconies.
• Test taps, drainage, electrical points, switches, plumbing and seepage.
• Check for cracks, uneven walls and finish quality, and note defects in writing.
• Insist on the occupancy certificate and a no-dues certificate before final payment and possession. Collect all keys, manuals and warranties.

8. After you move in

• Get the property mutated in municipal and revenue records, and transfer utilities in your name.
• Insure the home and contents.
• Join the resident welfare association, and keep records of maintenance payments.
• Keep the original documents safe, and give a copy to a trusted family member.

Red flags

• Seller in a hurry and unwilling to share documents.
• Price far below the market.
• Unregistered projects or those without approvals.
• Pressure to pay a large part in cash.
• Disputed ownership, family claims or pending litigation.

Laws and stamp duty rates vary by state and change over time. Use qualified legal and financial professionals for your specific transaction.

Negotiation and timing tips

Compare at least five similar properties in the same micro-market before negotiating. In a resale, point out needed repairs, pending society dues or a weak title as reasons for a lower price. With builders, ask for waivers on parking, club membership or the first year's maintenance rather than only a discount. Avoid buying under pressure from deadlines such as "offer ends today". Take a few days to complete your legal checks, because a deal that is genuinely good will still be there after due diligence.

Frequently asked questions

What costs are there besides the price?

Stamp duty, registration, GST on under-construction homes, brokerage, legal fees, maintenance deposits and interiors.

What is an encumbrance certificate?

A document showing whether a property has loans or legal claims registered against it.

Is RERA registration mandatory?

Most real estate projects above a size threshold must be registered with the state RERA.

Should I hire a lawyer?

Yes, for a title check and review of the agreement.

Ready-to-move or under-construction?

Ready homes avoid delay risk, under-construction homes may cost less but carry delay and quality risk.

What should I verify at possession?

The occupancy certificate, carpet area, quality of work and no-dues certificate.

Last reviewed 8 November 2026. Rates, limits and rules change, so confirm figures with the official source before you act.