What documents do I need to buy a flat in India?
Key documents include: (1) Sale agreement / Agreement to Sell, (2) Title deed chain from the original landowner to current seller, (3) Encumbrance Certificate (EC) for the last 30 years, (4) Approved building plan sanction from BBMP/BDA, (5) Occupancy Certificate (OC), (6) Khata certificate and extract (for Karnataka), (7) Property tax receipts up to date, (8) RERA registration certificate, (9) Society NOC (for resale), and (10) No Dues Certificate from builder. For home loan, add bank account statements and income proof.
What is stamp duty and how is it calculated in India?
Stamp duty is a state-level tax on property transactions. In Karnataka (2026): 5% of guidance value or agreement value, whichever is higher, plus 1% registration fee. Women buyers get a 1% rebate (pay 4%). The guidance value is the minimum value set by the state government for each locality — check it on kaverionline.karnataka.gov.in. Stamp duty varies by state: Maharashtra is 5%, Delhi is 4–6%, and so on.
What is the property registration process at SRO?
The registration process: (1) Calculate stamp duty and get e-stamp from authorized bank. (2) Draft sale deed with an advocate. (3) Book appointment on kaveri.mrc.gov.in (Karnataka) or equivalent portal. (4) Visit SRO with buyer, seller, two witnesses, original documents, and e-stamp. (5) Both parties give thumb impression biometrics. (6) Pay registration fee (1% of value, max ₹1.5 lakh in Karnataka). (7) Collect registered deed within 1–3 working days.
What is an Encumbrance Certificate (EC) and why do I need it?
An Encumbrance Certificate (EC) lists all registered transactions on a property — mortgages, sales, gifts, and legal notices — for a specified period. It proves the property has no hidden liens or mortgages. Get EC for the last 30 years from the sub-registrar office (Kaveri Online for Karnataka). If the EC shows an undischarged mortgage, the current seller must clear it before completing the sale to you.
What is TDS on property purchase and how do I pay it?
Under Section 194-IA of Income Tax Act, buyers must deduct 1% TDS on property purchases above ₹50 lakh. The TDS must be deposited within 30 days using Form 26QB on the Income Tax e-filing portal (onlineservices.tdscpc.gov.in). Issue Form 16B to the seller as proof of TDS deduction. Failure to deduct TDS attracts interest at 1%/month and penalty up to ₹1 lakh under Section 271H.
How long does it take to complete a flat purchase in India?
For ready-to-move property: 30–60 days from offer acceptance to registration. For under-construction: 2–5 years from agreement to possession, plus 30 days for registration after OC. The timeline includes loan processing (2–4 weeks), legal review (1–2 weeks), SRO appointment (1–7 days wait), and registration day. Khata transfer after registration takes another 30–90 days via BBMP eSvayam.
What is the difference between carpet area, built-up area, and super built-up area?
Carpet area: The actual usable floor area inside your flat, measured wall to wall, excluding wall thickness. This is the legally mandated area under RERA — builders must disclose and charge on carpet area. Built-up area: Carpet area + wall thickness + balcony area. Super built-up area: Built-up area + proportionate share of common areas (lobby, lift, staircase, gym, etc.). Typical loadings: built-up area is 15–20% more than carpet; super built-up is 25–40% more.
Can an NRI buy property in India?
Yes. NRIs (Non-Resident Indians) can buy residential and commercial properties in India without RBI permission, but cannot buy agricultural land, plantation, or farmhouse without RBI approval. NRIs can fund purchases through NRE/NRO accounts or foreign remittances. They must file TDS returns (Form 26QB) like resident buyers. Rental income is taxable in India and must be declared in ITR. Repatriation of sale proceeds follows FEMA guidelines.
What is a sale agreement vs sale deed — and which is binding?
A sale agreement (Agreement to Sale) is a preliminary contract outlining the terms of sale — price, possession date, payment schedule, and penalty clauses. It is binding but does not transfer ownership. A sale deed (Conveyance Deed) is the final document that transfers ownership from seller to buyer — it must be registered at the sub-registrar office. The sale deed, once registered, is the legally valid proof of ownership. In RERA-governed projects, the agreement to sale must be executed on RERA-prescribed forms.
What is a power of attorney (PoA) in property transactions and is it safe?
A Power of Attorney (PoA) authorizes another person to execute property transactions on behalf of the owner. General PoA for property sales are no longer valid for registration in most states following a 2011 Supreme Court ruling — a registered sale deed by the actual owner is required. Limited PoA for specific transactions (NRI buyers, for example) is acceptable if registered. Never buy property where the title transfer is only through an unregistered PoA chain — it creates title risk.