8 Documents You Must Check Before Signing Property Contract

Buying a home isn’t just an emotional decision — it’s a legal one.

You’re not just buying walls and windows; you’re entering into a binding agreement that can affect your finances for decades.

Yet, many first-time buyers sign stacks of papers they barely understand, trusting their agent or lawyer to “handle it.”

Big mistake.

Because once you sign, you’re legally responsible for every clause, condition, and fee hidden in the fine print.

Here are eight essential documents you must read carefully — and double-check — before signing any property contract.

1. The Sales and Purchase Agreement (SPA)

This is the master document — the one that spells out everything you’re agreeing to.

It includes the purchase price, payment schedule, handover terms, and penalties for delay or default.

What to check:

Buyer and seller names (make sure they match official IDs).

Property details (plot number, address, size).

Payment milestones and due dates.

Clauses about possession, late delivery, and dispute resolution.

Pro tip:

If anything is vague, request clarification or an addendum in writing. Never rely on verbal promises.

2. The Title Deed (Proof of Ownership)

The title deed proves that the seller legally owns the property — and has the right to sell it.

If the title isn’t clean, you could end up fighting legal battles for years.

What to check:

The seller’s name matches their ID and the sales documents.

There are no existing liens, loans, or disputes on the property.

Verify through your local land registry or municipal authority.

Pro tip:

Ask for an official encumbrance certificate (or equivalent) to confirm there are no outstanding debts tied to the property.

3. The Mother Deed (or Chain of Ownership)

This document traces the property’s history — who owned it before the current seller, and whether all transfers were legal.

It’s especially crucial for resale properties.

Why it matters:

A missing link in ownership can lead to future claims or disputes.

What to check:

The sequence of ownership transfers.

Legal registration of each sale.

Absence of unregistered or disputed transactions.

If the seller can’t produce a valid mother deed, walk away. It’s a red flag.

4. The Property Tax Receipts

Taxes tell the truth.

If the seller hasn’t been paying property taxes, the local authority might hold you — the new owner — responsible after the transfer.

What to check:

The latest 3–5 years of property tax receipts.

The receipts match the property’s address and title deed.

All dues are cleared before the sale date.

Pro tip:

If you’re buying from a builder or developer, confirm that taxes were paid for the entire land parcel, not just your unit.

5. The Encumbrance Certificate (Debt & Claim Verification)

This certificate confirms the property is free from any financial or legal claims — no outstanding loans, mortgages, or court disputes.

What to check:

Obtain it directly from the registrar’s office.

Make sure the time period covers at least the last 15 years.

Look for any mention of pledges or collateral agreements.

Red flag:

If there’s an active mortgage listed, ensure the loan is cleared and proof of release (a No Dues Certificate) is provided.

6. Building Plan Approval and Completion Certificate

If you’re buying an apartment or newly built home, these documents are vital.

They prove that the construction followed government-approved plans and safety standards.

What to check:

The approved layout matches the actual property.

Completion Certificate (CC) issued by the local municipal authority.

Occupancy Certificate (OC), confirming the property is safe to live in.

Why it matters:

Without these, your home could be considered illegal construction — and utilities or resale may be denied.

7. The Loan Sanction and Agreement (If You’re Taking a Mortgage)

If you’re financing your purchase, your bank will issue a loan sanction letter and agreement.

Many buyers skim through this — but it’s full of key financial terms that can affect you for decades.

What to check:

Interest rate type (fixed or floating).

Processing fees and hidden charges.

Foreclosure and prepayment penalties.

Tenure and repayment schedule.

Pro tip:

Compare terms across lenders. A small difference in interest can mean tens of thousands saved over time.

8. The Possession Letter and Handover Document

This document formally transfers ownership and possession from the seller or builder to you.

It’s what allows you to legally occupy the property.

What to check:

The handover date matches what’s stated in the SPA.

All payments are acknowledged as received.

The document clearly states there are no pending claims or conditions.

Keep multiple copies — you’ll need them for registration, loans, and future resale.

Bonus Tip: Hire a Real Estate Lawyer

Even if you trust your agent, always have a lawyer review every document.

They’ll catch hidden clauses, ambiguous terms, or missing signatures you might overlook.

It’s a small investment that can save you massive legal and financial pain later.

The Psychology of “Rushed Signing”

Developers and agents often pressure buyers to sign quickly — “or risk losing the deal.”

That’s a classic tactic.

When you rush, you miss details. And in real estate, details are everything.

Take your time, read twice, sign once.

Bottom Line

In real estate, what you don’t know can hurt you.

These documents are your shield — they protect your rights, your money, and your peace of mind.

Double-check every page, every signature, and every clause.