The four key due diligence requirements for property buying are;
Title verification
Land use approvals
Encumbrance checks
Statutory compliance.
What are the Requirements for Due Diligence?
Each plays a specific role in ensuring the property is safe to purchase.
Title due diligence: Confirms that the seller has a clear, legal, and marketable right to sell the property. This involves examining past ownership records, sale deeds, gift deeds, partition deeds, and inheritance documents for at least the last 30 years. The buyer must ensure there are no breaks in the ownership chain, disputes among co-owners, or claims from legal heirs. A clear title is the foundation of a legally secure property transaction.
Land use approvals: This requirement checks whether the property is approved for its intended use—residential, commercial, or agricultural. Buyers must verify zoning plans, master plans, and land conversion approvals issued by local development authorities. Purchasing a property on agricultural or restricted land without proper conversion can result in demolition, penalties, or denial of registration.
Encumbrance due diligence: This ensures the property is free from loans, mortgages, legal cases, or third-party claims. Buyers should obtain an Encumbrance Certificate (EC) and confirm there are no unpaid bank dues, liens, or court attachments. This step protects buyers from inheriting the seller’s financial or legal liabilities.
Statutory due diligence: It verifies compliance with government regulations and local laws. This includes checking approved building plans, completion or occupancy certificates, property tax receipts, utility bills, RERA registration (for new projects), and environmental clearances if applicable. Non-compliance can lead to fines, denial of possession, or cancellation of approvals.
This is all about what are the 4 due diligence requirements.
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What are the 4 Due Diligence Requirements?
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2025-12-30T08:10:22+00:00 2025-12-30T11:26:32+00:00Comment
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