Step 2 of 8: Due diligence — Check the land, the title and the builder's filings.
Step 2 of 8
Due diligence
Check the land, the title and the builder's filings.
Before you sign anything binding, check that the builder owns the land, that the land is free of loans and disputes, and that the project has the approvals it claims. You order an encumbrance certificate (EC) on the land and pay a lawyer of your own for a title opinion. The builder will offer his own title report — read it, but do not rely on it alone: it was written for him. Your bank will do its own legal and technical check before it lends, which is a useful second opinion, not a substitute for yours.
The money at this step
A lawyer's fee for the title opinion and a small fee for the EC. Usually a few thousand rupees to a few tens of thousands — confirm with the lawyer before you start.
Where Pinly helps
The ₹999 Pinly report on one project: the full filing record quarter by quarter, money collected and withdrawn as filed, approved-plan data where read, and sale-agreement clauses that favour the builder, flagged.
See the ₹999 reportHow long this usually takes
Typically 1–3 weeks, mostly waiting on the EC and the lawyer.
You are done with this step when
Your own lawyer has given a written title opinion, the EC shows no unexplained charge on the land, and you know which approvals are in place and which are pending.
Your next step · Due diligence
Get the title checked by your own lawyer
Order an EC on the land and a title opinion written for you, not the builder. For the builder's side, the ₹999 Pinly report sets out everything filed on the project — money as filed, approvals, plan data and agreement clauses.
1–3 weeks, mostly waiting
Documents at this step
Encumbrance certificate (EC) on the land
Shows whether the land carries a mortgage or a prior sale.
Your lawyer's title opinion
The only title opinion written for you.
Builder's title report
Compare it with your lawyer's; differences are questions.
Sanctioned building plan and commencement certificate
What may be built, and permission to start building it.
RERA registration certificate
Confirms the registration number, the promoter and the filed completion date.
Questions to ask
- Is the land owned by the builder, or held under a joint-development agreement with landowners?
- Is there a loan on the land or the project, and from which lender?
- Which approvals are still pending, and when are they expected?
- Which banks have approved this project for home loans?
- Can my lawyer see the original title documents?
Traps at this step
Relying on the builder's title report alone
It is a legitimate document written for the builder. You need one written for you. The fee is small next to the price of the flat.
Treating a bank's approval as your due diligence
A bank checks whether the flat is good security for its loan. That overlaps with your interest, but it is not the same question.
Ignoring pending approvals
A project with key approvals still to be applied for can be delayed for reasons nobody controls. Ask when each one is expected, and read what is filed.
This is general guidance to help you plan, not legal, tax or financial advice. Process, charges and stamp duty change, and vary by bank, builder and authority. Have a property lawyer read your documents, and confirm every figure before you transact. Pinly does not verify title, and does not perform legal due diligence on your behalf.