Buying a resale home is safe when you check four things carefully: the seller’s title, the building’s approvals, any existing loan or dues on the property, and a clean registration and handover. In Tamil Nadu, that means reviewing the sale deed and parent documents, the Encumbrance Certificate, patta, approved plan and completion certificate, and getting the seller’s existing mortgage closed before or at registration. This checklist walks you through each step.
Key takeaways
- Trace the title through parent documents and the EC for the period your advocate recommends.
- Check that patta and property tax records are in the seller’s name.
- If the seller has a home loan, plan how it will be closed and the original documents released.
- Deduct 1% TDS if the price is ₹50 lakh or more, and register on the higher of guideline value and price.
1. Title and ownership
- Seller’s sale deed and the chain of parent documents going back over the period your advocate recommends (often around 30 years).
- Encumbrance Certificate (EC) for the same period, downloadable from TNREGINET, to confirm there are no undisclosed sales, mortgages or attachments.
- Patta and revenue records in the seller’s name, matching the survey number and extent in the deed. Our guide to patta, chitta and EC explains each document.
- All owners sign. If the property is jointly owned or inherited, every co-owner or legal heir must join the sale. Check legal heir certificates and any partition deed.
- Power of attorney sales. If an agent signs for the owner, verify that the power of attorney is registered, specifically covers the sale, and that the owner is alive and has not revoked it.
Get an independent legal opinion. The lender’s advocate protects the lender, not you. See why you need a legal opinion.
2. Approvals and the building
| Document | What it confirms |
|---|---|
| Approved building plan and permit | The building was sanctioned by the planning authority and local body |
| Completion or occupancy certificate (where applicable) | The building was completed as per approval |
| Layout approval (for independent houses) | The plot is in an approved layout |
| Deviations | Compare the plan with the actual building: extra floors or enclosed balconies can cause problems |
| Association NOC and share certificate (flats) | No dues to the association and transfer is permitted |
Also inspect the home physically. Check for seepage, cracks, electrical and plumbing condition, and water supply. Older buildings may need repairs that affect your budget and your negotiating position.
3. Existing loans and dues
- Seller’s home loan. If the seller has a loan, the bank holds the original documents. Agree how the loan will be closed: typically part of your payment goes directly to the seller’s bank, which issues a closure letter and releases the originals. Get the bank’s foreclosure letter showing the exact amount.
- Property tax. Ask for the latest receipt from the local body (Coimbatore Corporation within city limits) and check there are no arrears.
- Electricity and water. Check bills are paid up to the handover date and plan the name transfer.
- Maintenance and corpus. Get an association no-dues letter for flats and villas in gated communities.
4. Your home loan
Lenders fund resale homes after their own legal and technical checks, and may apply a lower loan-to-value on older buildings. Apply early and share the full document set. Our home loan documents checklist lists what lenders ask for. The loan is paid to the seller (and the seller’s bank, if there is a loan) at registration.
5. Agreement, payment and tax
- Sale agreement. Record price, advance, balance payment dates, who pays which charges, the handover date and what happens if either side backs out.
- Pay through banks. Income tax law prohibits accepting ₹20,000 or more in cash in relation to the transfer of immovable property.
- TDS. If the consideration is ₹50 lakh or more, deduct 1% TDS (the old section 194-IA, renumbered under the Income-tax Act, 2025) and deposit it. If the seller is an NRI, different and higher TDS rules apply, so take advice.
- Stamp duty and registration. Tamil Nadu charges 7% stamp duty and 2% registration fee on the higher of guideline value and price, with a 1% registration fee concession for women on property up to ₹10 lakh.
6. Registration and handover
- Book a slot and pay fees online through TNREGINET, and register at the sub-registrar office with the seller, witnesses and original documents.
- Collect all original title documents, the registered sale deed, keys, association documents and any warranties.
- Apply for patta transfer, property tax name change, and electricity and water name transfer.
- Take a fresh EC a few weeks after registration to confirm your purchase is recorded.
A quick checklist before you pay the advance
| Check | Done? |
|---|---|
| Copies of sale deed, parent documents and EC received | ☐ |
| Patta and tax records in seller’s name | ☐ |
| Approved plan and completion certificate seen | ☐ |
| Seller’s loan status and foreclosure amount confirmed | ☐ |
| Independent legal opinion obtained | ☐ |
| Home loan in-principle sanction received | ☐ |
Frequently asked questions
What documents should I check before buying a resale flat?
The seller’s sale deed and parent documents, EC for the recommended period, patta, approved plan and building permit, completion certificate where applicable, property tax receipts, association NOC and, if there is a loan, the bank’s foreclosure letter.
Can I buy a resale home that has an existing loan?
Yes. Part of your payment usually goes directly to the seller’s bank to close the loan. The bank then issues a closure letter and releases the original documents. Coordinate this with both lenders and your advocate.
Is GST payable on a resale home?
No. GST applies to under-construction property sold by a builder before completion. A resale of a completed home does not attract GST on the sale price.
Who pays stamp duty on a resale purchase?
Usually the buyer, though the sale agreement can say otherwise. In Tamil Nadu it is 7% stamp duty and 2% registration fee on the higher of guideline value and price.
This article is general information as of September 2026, not legal, tax or financial advice. Rules and rates change; confirm with a qualified advocate, chartered accountant or the relevant department before you act.
References
- TNREGINET: EC, guideline value and registration
- Tamil Nadu stamp duty and registration fee structure (TN Single Window Portal)
- ClearTax: Sections 269SS and 269T (cash restrictions)
- RBI Master Circular: Housing Finance
Looking for a verified resale home in Coimbatore?
Our team can help you find resale flats and houses with documents in order, coordinate with the seller’s bank and guide you to a smooth registration.
