What is the Legal Procedure of Buying Property in India

Buying Property

Purchasing a property is a significant investment, and it’s vital to ensure that all aspects are in order before finalizing the deal. While it’s thrilling to find your dream home, neglecting essential legal documents could result in costly and time-consuming consequences. Thus, it’s crucial to understand the importance of all the legalities while buying a property in India.

This article offers a step-by-step guide that one needs to follow to ensure a seamless and trouble-free property purchase. If you’re planning to buy a property shortly, here are a few things that you should not overlook.

Step 1: Preparation of the sale deed

The first step is the preparation of the sale deed, which is the primary legal document that verifies the sale and transfer of property. The buyer’s lawyer typically prepares this document on green legal paper, leaving the date and place fields blank for stamping. It’s essential to read the fine print of the deed thoroughly before signing since it is a legally binding document.

Step 2: Payment of Stamp Duty

The second step is the payment of stamp duty, which the buyer must pay at a designated bank or authorized collection center of the Stock Holding Corporation of India to get the sale deed stamped. The charges differ from state to state, but they typically amount to around 5% of the property’s market value. The stamp papers are available for purchase from licensed stamp vendors in person or online. Once the payment is complete, the bank provides a receipt and stamps the sale deed with the words “stamp duty received.”

Step 3: Registration and Execution of documents at the Sub-Registrar of Assurances

The next step after payment of stamp duty is the registration and execution of legal documents at the Sub-Registrar of Assurances. This process involves registering the sale deed with the sub-registrar who has jurisdiction over the property’s location.

It is important to note that real estate transactions in India cannot be completed electronically. The parties involved, including the seller, purchaser, and two witnesses, must be physically present at the sub-registrar’s office.

The sale deed is registered after all parties sign on the stamped deed, and a unique number is assigned to the document. The buyer is given a receipt after registration.

The registered sale deed is then presented to the Reader of the Sub-Registrar for verification, who will indicate the required registration fee. The fee is deposited with the cashier against a receipt, and the documentation is then presented before the Sub-Registrar.

Once the documentation is returned to the buyer, the seller hands over the physical possession of the property to the buyer. An original copy of the registration is kept with the registrar, which can be referred to in case of any disputes.

Step 4: Mutation of Title Deeds

Mutation is the legal process of transferring ownership of a property from the seller to the buyer. This step is crucial in making the buyer the official owner of the property and allows the government to levy property taxes on the new owner.

To apply for mutation, the buyer needs to submit a signed application form and a notarized copy of the Sale Deed to the City Survey and Land Records Department. The value of tax on the property is determined by the department, and once the payment is made, a Letter of Mutation is issued in favor of the buyer. This letter confirms the transfer of ownership, making the buyer the legal owner of the property under Indian real estate law.


Purchasing a property and registering it with the appropriate authorities can be a daunting task. But we hope this article provides a clear understanding of the fundamental real estate laws in India and streamline the process of buying a property in India.

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