How to Do a Background Check on a Property Seller: A Detailed Guide for Safe Property Transactions in India

When it comes to buying property in India, one of the most critical steps — and often the most overlooked — is conducting a thorough background check on the property seller. Whether you’re purchasing a flat from a builder, a resale home from an individual, or a plot from a landowner, verifying the seller’s credibility can save you from legal troubles, financial loss, and emotional distress later on.

In this detailed guide, we break down everything you need to know about performing a proper background check on a property seller, especially relevant in cities like Ahmedabad where real estate activity is booming.

 

Why Is a Background Check on a Property Seller Necessary?

Before diving into the ‘how’, let’s understand the ‘why’. Here are the key reasons why verifying a property seller is essential:

• To Confirm Legal Ownership: Prevent fraud by verifying that the seller is the rightful owner.

• To Avoid Encumbrances: Properties under legal dispute or debt can lead to financial headaches.

• To Ensure Clear Title: Title clarity is a prerequisite for resale and loan approvals.

• To Avoid Fake Sellers: There have been instances of impersonation and identity fraud in real estate.

• To Evaluate Seller Credibility: Builders with bad reputations or individuals with pending legal cases may pose risk.

 

Step-by-Step Guide to Background Check a Property Seller

Let’s now break down the steps you should take to verify the authenticity and reliability of the seller before signing any deal.

 

Step 1: Verify the Identity of the Seller

Start by requesting the seller’s government-issued ID proof such as:

• PAN Card

• Aadhaar Card

• Passport (in case of NRI)

Match these details with the name mentioned on the property documents — especially the title deed and sale deed.

If it’s a company, collect:

• Company registration certificate

• GSTIN

• PAN of the entity

Tip: Ask for a recent passport-size photo of the seller and attach it with your documentation for added proof.

 

Step 2: Check the Title of the Property

Ensure the seller has a clear and marketable title. You can:

• Ask for the latest title deed

• Cross-verify at the Sub-Registrar Office (SRO) or local revenue department

• Engage a property lawyer to run a title search report for the last 30 years

Red Flags:

• Title not in the seller’s name

• Multiple heirs or co-owners not consenting to sale

• Discrepancy between property use and zone

 

Step 3: Request the Encumbrance Certificate (EC)

The Encumbrance Certificate reveals whether the property is free from:

• Legal dues

• Loans or mortgages

• Court litigation

You can obtain the EC from the local SRO for a small fee. Insist on a Form 15 EC for full details over the last 10–15 years.

Pro Tip: An EC in Form 16 means no transactions happened — cross-check if that’s accurate.

 

Step 4: Inspect Property Tax Receipts and Utility Bills

Ask for the most recent:

• Property tax receipts

• Electricity and water bills

• Maintenance bills (for flats)

These should be in the seller’s name and updated. Any pending bills could hint at disputes or lack of possession.

 

READ THIS FOR  MORE, Property Tax in Ahmedabad – Everything You Need to Know

 

Step 5: Check for RERA Registration (If Under Construction)

If the property is from a builder or part of a project:

• Verify RERA registration on the official Gujarat RERA portal (gujrera.gujarat.gov.in)

• Check if the developer has delayed or litigated projects

• Read reviews or visit forums for real feedback

Why This Matters: RERA ensures legal protection, delivery timelines, and escrow use of your payment.

 

Step 6: Visit the Property and Speak to Neighbors

Conduct a physical inspection and casually talk to people nearby:

• Is the property under any family dispute?

• Does the seller have a good reputation?

• Has anyone else claimed ownership?

This local insight can often uncover hidden issues that documents won’t show.

 

Step 7: Conduct a Civil and Criminal Case Check

Run a background check to see if the seller has pending:

• Civil disputes related to real estate

• Criminal cases or fraud allegations

You can do this via:

• Online court databases (like ecourts.gov.in)

• RTI requests to local police stations

• Legal advisors with access to databases

For Builders: Use platforms like Consumer Court forums, RERA complaint lists, and Google reviews.

 

Step 8: Verify Power of Attorney (if applicable)

If the seller is selling on behalf of someone else, ask for:

• Registered Power of Attorney (PoA)

• Signature and ID proof of both parties

Ensure the PoA is not revoked or fake. Double-check with the SRO.

Warning: Many fraud cases occur with misuse of expired or fake PoAs.

 

Step 9: Validate Bank Loan Sanction (if Resale with Ongoing Loan)

Ask for:

• Loan sanction letter

• Loan account statement

• No-objection certificate (NOC) from the bank

Ensure all dues will be cleared at the time of registration.

 

Step 10: Hire a Property Lawyer for Legal Due Diligence

While you can do most of the checks yourself, a property lawyer adds a layer of safety. They’ll:

• Draft and vet agreements

• Perform title and encumbrance verification

• Highlight zoning or mutation issues

• Ensure compliance with local laws

 

Special Checklist for NRI Buyers or Outstation Investors

• Use a trusted local agent or consultant to verify in person

• Ensure the seller is authorized to deal with NRIs (check FEMA guidelines)

• Use digital tools to verify RERA, SRO records, and builder reputation

• Avoid cash transactions and record all payments legally

 

How Around Town Realty Assists in Seller Verification

At Around Town Realty, we understand the stakes of a property transaction. Our team:

• Verifies seller documents before listing

• Offers pre-vetted resale and builder listings

• Connects buyers with legal experts and RERA advisors

• Offers end-to-end support — from site visits to registration

We help you buy with confidence, not confusion.

 

Conclusion: Trust, But Verify Every Property Seller

In 2025’s fast-evolving real estate market, trusting blindly can be expensive. A little effort in verifying a seller can prevent major losses. Whether you’re buying a flat in South Bopal or a plot in Gota, this guide helps you conduct a thorough background check on property sellers in Ahmedabad and beyond.

When in doubt, let Around Town Realty be your trusted local partner. We ensure your home buying experience is safe, smart, and stress-free.

 

FAQs

1. Is it mandatory to check property documents before purchase?
   Yes, verifying ownership and legality is essential to avoid fraud or disputes.

2. How do I check if the property is under litigation?
   You can ask for an Encumbrance Certificate or check court databases and SRO records.

3. Can I verify the seller’s credentials online?
   Yes, ID details, RERA records, and even court cases can be partially verified online.

4. Is a property lawyer necessary for background checks?
   While not mandatory, a lawyer ensures you don’t miss critical red flags.

5. How does Around Town Realty help with seller verification?
   We perform preliminary checks on all listed sellers and connect you with professionals for deeper due diligence.