Timeline overview: Resale property: 45–90 days. New project: 2–5 years to possession. Budget allocation: ~80% property cost + ~8% stamp duty & registration + ~5% interiors + 5–7% buffer.
Step 1: Set a realistic budget
Your total budget is more than the property price. Before shortlisting properties, account for:
- Property cost — The agreed sale price
- Stamp duty & registration — approximately 4–11% depending on state (see our Stamp Duty Guide for state-wise rates; Telangana is ~4.5%, Tamil Nadu can exceed 11%)
- Home loan processing fee — 0.5–1% of loan amount
- Interior & modular kitchen — Budget ₹5–15 lakh for a decent fitout
- Society transfer charges — ₹25,000–₹1 lakh for resale flats
- Lawyer fees — ₹10,000–₹30,000 for title verification
- Buffer — At least 5% for surprises
Step 2: Get a home loan pre-approval
Before searching in earnest, get a home loan pre-approval (also called in-principle sanction) from at least one bank. This tells you your exact eligibility, strengthens your negotiating position with sellers, and speeds up the process once you find the right property.
See our Home Loan Guide for a full walkthrough of the loan process.
Step 3: Shortlist properties
Define your non-negotiables before you start viewing: locality, BHK size, floor preference, age of the building, parking, and proximity to schools / workplace. Be disciplined — it is easy to get swayed by well-staged showflats.
On Placestore, you can browse properties directly from owners — no broker involved and no commission payable. Filter by BHK, price range, and locality, then contact the owner directly to schedule a viewing.
Step 4: Visit and evaluate
During visits, check:
- Natural light and ventilation at different times of day
- Water pressure, electrical points, and condition of fixtures
- Building common areas, lift, generator, security
- Neighbourhood — traffic, flooding history, noise levels
- Vastu compliance if relevant to you
- Mobile network coverage inside the flat
Step 5: Negotiate the price
Most sellers price with 5–15% negotiation room. Research recent transactions in the same building and locality (check the Sub-Registrar's registration records, which are public). A fair offer is at the market rate or slightly below; offers that are too aggressive insult the seller and stall negotiations.
On Placestore, you negotiate directly with the owner — no broker inflating the asking price to cover their commission.
Step 6: Verify the title and legal documents
This is the most important step and the one buyers most often skip. Hire a property lawyer to verify:
- Title chain — 30 years of ownership history, no gaps or disputes
- Encumbrance certificate — Confirms no mortgage or lien on the property
- Khata / property tax receipts — Confirm the seller is the registered owner with the local authority
- Approved building plan — The construction is according to sanctioned plans
- Occupancy certificate (OC) — For completed buildings; confirms the building meets regulations
- No-Objection Certificates (NOCs) — From society, electricity board, water authority
Red flags to watch: Power of attorney sales (seller is not the original owner), properties in litigation, buildings without OC, and properties on agricultural land converted for residential use without proper approvals.
Step 7: Sign the sale agreement
Once legal checks are clear, sign a sale agreement (also called an agreement to sell or MOU). This document fixes the price, payment schedule, possession date, and penalties for breach.
Token amount vs advance payment: A small token amount (typically ₹50,000–₹2 lakh) is paid before signing the formal agreement to take the property off the market. The sale agreement itself typically involves a larger advance — often 10–20% of the property value — with the balance due at registration. Always confirm the terms for refund in writing before paying any amount, as token amounts are often forfeited if the buyer backs out.
The sale agreement must be stamped (stamp duty on agreements varies by state — in Maharashtra it equals the full sale deed stamp duty if possession is handed over; in many other states it is nominal). Have a lawyer advise on the correct stamp duty for your state before signing.
Step 8: Arrange the home loan
Submit the property documents to your bank for legal and technical verification. The bank will conduct an independent valuation. Once satisfied, the bank issues the formal sanction letter and you sign the loan agreement. Arrange the down payment (your own funds) and confirm the bank disbursement timeline with the seller.
Step 9: Execute the sale deed
The sale deed is the final transfer document. Have a lawyer draft it; this is not something to do yourself. Key inclusions: exact property description, sale price, payment confirmation, seller's declaration of clear title, and possession date.
Pay stamp duty before or at the time of execution (see Step 1). The bank may disburse directly to the seller at this stage.
TDS obligation — mandatory for properties above ₹50 lakh: If the property value is ₹50 lakh or more and the seller is a resident Indian, you (the buyer) are legally required to deduct 1% TDS from the payment under Section 194-IA of the Income Tax Act and deposit it with the government using Form 26QB within 30 days.
Failure to deduct and deposit TDS makes the buyer an "assessee in default" and attracts a penalty equal to the TDS amount plus interest. This step is commonly missed by first-time buyers. Your bank or home loan lender may assist with this, or consult a CA. (Note: TDS rules differ if the seller is an NRI — Section 195 applies instead.)
Step 10: Register the sale deed
Both buyer and seller (or their POA holders) must appear at the Sub-Registrar's office with two witnesses. Bring originals of all documents, passport photos, and the registration charge payment. The registration is typically completed within a few hours. You receive the registered original — this is your ownership document.
After registration, apply for mutation of the property in your name with the local municipality / panchayat and update the electricity and water connections.