Legal Due Diligence in Real Estate: When, Why & How

Legal due diligence is a must-do before buying, selling, leasing, or investing in property. It protects you from fraud, disputes, and hidden liabilities.
When Is It Required?
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Before buying or selling any property
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During resale transactions (especially older properties)
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Before signing Joint Development Agreements (JDA)
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For commercial leases or builder tie-ups
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When investing in high-value or disputed assets
Process Overview:
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Title Verification – Check ownership history and clarity
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Encumbrance Check – Ensure no loans, liens, or legal claims
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Document Review – Sale deed, EC, mutation, tax receipts, approvals
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Physical Inspection – Match layout with sanctioned plans
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Compliance Check – RERA registration, NOCs, zoning laws
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Legal Opinion – Lawyer issues a report confirming property is safe to buy
Timeline:
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Basic due diligence: 3–7 working days
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Enhanced due diligence (for complex cases): 10–15 days
Key Benefits:
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Avoids fraud and litigation
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Ensures clean title and ownership
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Helps in loan approvals and resale
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Boosts buyer confidence and negotiation power
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