Buying a resale flat in Bengaluru: what to check

Key takeaways

• A resale flat's title chain includes the original land title, the builder's sale deed and every later sale, so collect all of them.
• If the seller has a home loan, the bank holds the original documents; the loan must be closed and the documents released at or before registration.
• Ask for the occupancy certificate and sanctioned plan; a missing OC needs careful legal assessment, not an automatic yes or no.
• Get a no-dues letter from the association and check its finances, pending levies and disputes.
• Test the water supply and building condition yourself, using bills, invoices and visits at different times.

How is a resale flat different from a new one?

With a resale flat, you can see the actual home, the neighbours, the water situation and how the building has been maintained. There is no construction delay risk, and resale flats generally do not attract GST.

The trade-offs are different. The building is older and may need repairs. The paperwork has more links, because ownership has passed from the landowner to the builder, from the builder to the first buyer, and possibly through more sales since. You are also joining an existing residents' association with its own finances, rules and history.

So the checks shift. Less of your effort goes into the developer's promises, and more goes into the ownership chain, the seller's loan, the association and the condition of the building.

If the building is only a few years old, the original project may still appear on the Karnataka RERA website. Its records, and any complaints filed by other buyers, can tell you a lot about the builder and about pending defect claims. Under RERA, the builder is responsible for structural defects reported within five years of handover, which may still benefit the building.

Title and the ownership chain

Ask the seller for copies of every document that shows how ownership reached them. For a flat in an apartment building, that usually includes the land title documents behind the project, any joint development agreement between landowner and builder, the builder's sale deed to the first buyer, and every later sale deed. If the seller inherited the flat, ask for the will or succession documents and confirm that other heirs have no claim.

Get an encumbrance certificate (EC) from the Kaveri registration portal covering the flat for a long period, commonly up to 30 years when combined with the land title. The EC lists registered transactions such as sales and mortgages. It does not show unregistered agreements or most court cases, so it is one check among several.

Confirm that the seller's name, the flat number, the floor, the area and the undivided share of land (UDS) are consistent across the sale deed, khata, tax receipts and the association's records.

If the seller has a home loan

Many resale flats still have a running home loan. In that case, the seller's bank holds the original title documents, and the bank's charge on the flat must be cleared before or at the time of sale.

Ask the seller for a loan statement and a letter from the bank stating the outstanding amount. The usual approach is for your payment, or your lender's payment, to go partly to the seller's bank to close the loan. The bank then issues a closure letter and returns the original documents. Where a mortgage was registered, ask for proof that the charge has been released. Your lawyer should plan this sequence so that you never pay the full price while the flat is still mortgaged to someone else.

Insist on seeing the originals of the full title chain before registration, not only photocopies.

Occupancy certificate, sanctioned plan and deviations

The occupancy certificate (OC) is issued by the local authority after it finds that the building was constructed in line with the sanctioned plan and is fit to occupy. Ask for a copy of the OC and the sanctioned building plan, and check that the number of floors and flats in the building matches the plan.

A building without an OC, or with extra floors beyond the sanctioned plan, can face problems with utility connections, bank loans, khata and resale. That said, the consequences depend on the building, the authority and the nature of the deviation. Ask an independent property lawyer to assess this specific case before you decide.

Also check whether the flat itself has been altered. Merged flats, enclosed balconies or converted terraces may not match the sanctioned plan, and the association may object to them.

Khata transfer and property tax

The khata is the property's record in the city corporation's tax register. For a flat within city limits, check that the seller's name is on the khata or e-Khata and that property tax has been paid up to date. e-Khata is now needed for property registration within the city's municipal limits, so confirm its status on the official portal before you fix a registration date.

After registration, you apply to transfer the khata into your name. Keep the registered sale deed, tax receipts and the seller's khata documents ready for this. The city's civic bodies have recently been restructured, so check which corporation handles the building and use its official portal.

A khata is a tax record, not proof of title. Check it alongside the ownership chain, not instead of it.

Association dues, rules and finances

Ask the seller for a no-dues certificate from the apartment owners' association confirming that maintenance, water charges and any special levies are paid up to date. Unpaid dues often follow the flat, so you do not want to inherit them.

Then look at the association itself. Ask how much is in the sinking fund or corpus, which is the reserve for major repairs. Ask whether any large expense is planned, such as lift replacement, painting, waterproofing or an upgrade to the sewage treatment plant (STP), and how it will be funded. Ask whether there is a dispute with the builder over handover of common areas, or any legal case involving the association.

Read the bylaws for rules on pets, renting out, parking and interior work. Confirm in writing which car parking slot belongs to the flat. Speak to two or three residents, not only the seller or the association secretary, about water, maintenance increases and how disputes are handled.

Building age, structure and condition

Find out when the building was completed and what has been repaired since. Older buildings are not necessarily worse, but they need more scrutiny, and they may have shorter remaining loan tenures available from banks.

• Look for seepage, damp patches and cracks in walls, ceilings and the basement.
• Check the condition and service records of lifts, the generator and fire-fighting equipment.
• Check the terrace waterproofing and the condition of common pipes and drains.
• Open taps and flush toilets to check water pressure and drainage.
• For an older building with visible cracks or past structural repairs, consider a structural engineer's inspection.
• Note whether the flat needs rewiring, plumbing or bathroom work, and add it to your budget.

Water, price and closing the deal

Ask how the building gets its water: a city (BWSSB) connection, borewells, private tankers, or a mix. Ask the association for the last 12 months of water bills and tanker invoices, and visit in summer if you can. A building that relies heavily on tankers will pass that cost on through maintenance charges. Ask about power cuts and generator backup at the same time.

For price, compare with recent registered sales of similar flats in the same building or nearby, not only portal asking prices. Stamp duty and registration are charged on the higher of the sale price and the government guidance value, so check both.

If the price is ₹50 lakh or more, deduct 1% TDS when paying a resident seller and deposit it with the income tax department. If the seller is a non-resident Indian, TDS is higher and you need a TAN (tax deduction account number), so plan this early. Pay only by bank transfer, register the sale deed at the sub-registrar's office, and take possession with keys, original documents and the association's transfer formalities complete. List in the agreement which fittings, fixtures and appliances stay with the flat, so there is no argument on handover day.

Checklist

• Collect copies of every deed in the ownership chain, from land title to the seller.
• Get an encumbrance certificate from the Kaveri portal for the full period.
• Match names, flat number, area and UDS across all documents.
• Get a bank letter showing any outstanding loan and plan its closure.
• Inspect originals of the title documents before registration.
• Get copies of the occupancy certificate and sanctioned building plan.
• Check for alterations to the flat that differ from the plan.
• Confirm the khata or e-Khata and up-to-date property tax.
• Get a no-dues certificate from the association.
• Ask about the sinking fund, planned major repairs and disputes.
• Get 12 months of water bills and tanker invoices.
• Inspect for seepage, cracks, lift condition and terrace waterproofing.
• Compare price with registered sales and guidance value.
• Plan TDS correctly, especially if the seller is an NRI.
• Get a lawyer's written title opinion before paying the advance.

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Official sources

• Kaveri Online Services, Karnataka
• Department of Stamps and Registration, Karnataka
• Bruhat Bengaluru Mahanagara Palike (BBMP)
• Income Tax Department e-filing portal (TDS on property)

This guide is general information, not legal or tax advice. Rules and rates change; confirm on the official portal and with an independent property lawyer before you pay.