8 Step by step process of buying property in India

Buying home is the dream of many millions in India, people have set of million dream about their home when they thought of buying home. One should follow these tips before buying property in Bangalore this blog includes the localities, market rate, about budget, about personal or family needs.

You may already finalized the property and you may got your dream house but you should have knowledge about the process of finalising that property, what are the documents required and how the procedure will be done, and get into the legal procedure of buying property.

To help you to understand the flat buying process, here are the 8 esstential step by step process of buying property in India.

1 : Conversation legally [between buyer & seller]

Even though buyer & seller have agreed on deal, buyer typically anxious and nerves about the next step or to move forward. There is always unusual feeling that the other party may back out or provide unplesant surprise, so it is crucial, seller and buyer agree to the terms, conditions, timelines of sales without leaving any loose ends, that disputes arise later i.e, why the conversation between buyer & seller is needed legally.

2 : Document Verification

Document verifying process is same for all kind of properties like residential, commercial and it slights difference for under construction property and ready to move in[new & resale property].

One should be more consious while booking under construction property. You have more to verify in this from land document to possession letter.

Never ever initiate booking transaction before all documents are verified. Some builder or seller may not support document verification unless the booking amount is paid. Avoid such builders or sellers.

Here are the list of documents required for verifying property:

  • Mother deed
  • Sale deed
  • Encumbrance certificate (EC)
  • Khata certificate & extract
  • Latest tax paid receipt
  • RTC Extract
  • Building approval plan (For Bangalore, BIAPPA/BDA approval)
  • No objection certificate from bank if property bought on loan (NOC)
  • No objection certificate from association/ society office / Maintenance office (NOC)
  • Latest utility bills – electricity and water
  • Aadhar of seller
  • Family tree and death certificate if the property was inherited
  • General Power of Attorney / Power of attorney/ Special power of attorney, if applicable

3 : Sale agreement drafting & execution

Sale agreement is judical promissiory note to sell the property in future under the terms and conditions mentioned in the agreement. As per karnataka stamp act, the stamp duty of the sale agreement is 0.1% of consideration value. Ex: purchase value is 1Cr, so stamp duty will be 1cr*0.1 = Rs.10000. Stamp duty will paid in mode of e-stamp paper or franked at the subrigester office by making the payment in mode of DD.

Documents required for sale agreement

  • Absolute Sale deed of seller
  • Khata certificate & extract
  • Latest tax paid receipt
  • Encumbrance certificate (EC)

4 : Home Loan

Documents required for home loan process list:

  • Eligibility Check
  • Pre Approval loan letter from a bank
  • Execute the sale agreement
  • Submit your personal documents (Passport size photo, PAN, Aadhar, 6-month bank statement, salary slip, IT return for the last two year.
  • Fill the home loan application
  • Submit Property Documents
  • Home Loan Sanction
  • Preparing the Sale Deed
  • Home Loan Disbursement

5 : TDS

From June 1st, 2013, when a buyer buys immovable property,  costing more than Rs.50 lakhs, he has to deduct TDS [ Tax Deducted at Source ] when he pays the seller. This has been laid out in Section 194-IA of the Income Tax Act.

Note :

  • The buyer has to deduct TDS at 1% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller.
  • No TDS is deducted if sale consideration is less than Rs.50 lakhs. If installments are being paid, TDS has to be deducted on each installment.
  • Tax is to be paid on the entire sale amount. For example, if you have bought a house at Rs.55 lakh, you have to pay tax on Rs.55 lakh and not on Rs.5 lakh (i.e. Rs.55 lakh – Rs.50lakh). This is applicable even when there is more than 1 buyer or seller.
  • If you are the buyer, you do not need to obtain a TAN (Tax Deduction Account Number) number.
  • If you are the seller, you have to provide your PAN or else TDS is deducted at 20%. PAN of the buyer is also mandatory. TDS is deducted at the time of payment or at the time of giving credit to the seller, whichever is earlier.
  • This TDS has to be deposited along with Form 26QB within 7 days from the end of the month on which TDS was deducted.
  • After depositing TDS to the government, the buyer is required to furnish the TDS certificate to the seller. This is available around 10-15 days after depositing the TDS.
  • Thus for paying TDS, the seller is required to obtain Form 16B and the buyer is required to obtain Form 26QB.

6: Stamp Duty & Registration

As mentioned in the sale document, the stamp duty and registration charges in Karnataka range from 2-5 per cent of the consideration value. The stamp duty and registration charges are as follows.

In the wake of the Coronavirus crisis, the Karnataka government reduced the stamp duty for a specified price bracket. The Karnataka Government had proposed a reduction of stamp duty from 5 per cent to 3 per cent. However, this was applicable for properties valued between Rs 35 and 45 Lakh. Moreover, it was only applicable to first-time property registration.

Below is the list of charges in Bangalore

  • Stamp duty: 5% of consideration value
  • Registration charge: 1% of consideration value
  • Chess : 0.5% of consideration value.

7 : Sale deed drafting and registration

Sale deed is legal documents that consists details of tansfer of property ownership from seller to buyer. This is one of the most vaulable legel documents while purchasing or selling property.

Documents require to draft sale deed:

  • Seller sale deed
  • Current year khata certificate & extract
  • Current year tax paid receipt
  • Current year encumbrance certificate

Print the sale deed draft on document paper (bond paper). Print one side of the paper, avoid back to back printing.

Decide the respective sub-register office to register the property. On the day of property registration, carry the following documents to sub-register office.

  • Printed sale deed
  • Executed sale agreement along with its stamp duty paid receipt
  • Current year tax paid receipt
  • Current year’s khatha certificate and khatha extract
  • Aadhar (Linking of mobile number is mandatory for digital signing – Digital signing at registration is easy and convenient)

8 : After Registration

  • Get the encumbrance certificate printout immediately after the registration. Buyer name should reflect in new encumbrance certificate
  • If the property bought on loan, take the photocopy of sale deed and get true copy attestation from an advocate before handing the sale deed to bank. You may not get access to the original sale deed until the loan is cleared.
  • Meanwhile, true copy attestation helps to proceed for property tax application, khata transfer application, and name change in utility bills.


Here the complete details of procedure of property buying process in India. Do contact @ Hebbar Heaven Realtors for furture. If you are in the process of looking property feel free to contact we will guide you from the scratch from property searching to complete registration. Make sure about knowing all the details of above before making registration. Once buying a property everyone should aware of all the details of property buying procedure so that you can calculate your budget, required documents, documents to give by seller, and how the procedure will gone through at finalising property.