The Complete Property Due Diligence Checklist for Karnataka
A 10-step framework that covers every verification a buyer, advocate, or institution should perform before committing to a Karnataka property transaction. Each step maps to a specific risk dimension that DeedSure scores automatically.
In This Guide
Title Deed Verification
The sale deed is the foundational document that transfers ownership of immovable property. Under the Registration Act, 1908 (Section 17), any instrument that creates, declares, assigns, or extinguishes rights in immovable property above the value of one hundred rupees must be registered. Under the Transfer of Property Act, 1882 (Section 54), a sale of immovable property can only be made by a registered instrument.
Verification actions:
- Confirm the sale deed is registered at the Sub-Registrar Office (SRO) having territorial jurisdiction over the property.
- Cross-reference the document number and registration year against the SRO records via the Kaveri Online portal.
- Verify the seller in the current deed matches the buyer in the preceding deed (chain continuity).
- Confirm the execution date (not registration date) for chain ordering — per Section 47 of the Registration Act, the document takes effect from the date of execution.
- Check the schedule of property: survey number, extent, boundaries, and address must be consistent across all documents in the chain.
An unregistered sale deed is void under Section 49 of the Registration Act. A broken chain of title — where the seller in a subsequent deed was never recorded as buyer in a preceding deed — creates a fatal defect. DeedSure automatically reconstructs the chain and flags gaps as CRITICAL severity anomalies.
Encumbrance Certificate Analysis
An Encumbrance Certificate (EC) is an extract from the records maintained by the Sub-Registrar under Section 57 of the Registration Act, 1908. It lists all registered transactions against a property for a given period, including sales, mortgages, leases, releases, and court attachments.
Verification actions:
- Obtain a 30-year EC covering the full search period from the relevant SRO. Shorter periods may conceal earlier encumbrances.
- Distinguish between Form 15 (encumbrances exist) and Form 16 (nil encumbrance). A Form 16 for 30 years is the gold standard.
- Cross-reference every sale entry in the EC against the title deeds provided — missing chain transactions (DeedSure rule CR-005) indicate undisclosed transfers.
- Check for phantom EC entries (DeedSure rule CR-006): transactions appearing in the EC that are not represented in the title deed chain.
- Verify all mortgages have corresponding release/satisfaction entries (DeedSure rule CR-007).
A missing EC entry could mean a prior sale or mortgage was concealed. An unreleased mortgage means the lender retains a charge over the property. These are the most common sources of title disputes in Karnataka.
RTC & Mutation Verification
The Record of Rights, Tenancy and Crops (RTC), also known as Pahani, is the primary land revenue record maintained under the Karnataka Land Revenue Act, 1964. It records the owner, extent, land type, survey number, and crop details. Mutation is the process of updating the RTC when ownership changes.
Verification actions:
- Obtain the latest RTC extract from the Bhoomi portal (landrecords.karnataka.gov.in) and verify the owner name matches the seller.
- Trace mutation entries backward to verify each ownership change in the chain is reflected in the revenue records.
- Cross-reference the extent in the RTC (acres and guntas) against the sale deed schedule (1 acre = 40 guntas = 43,560 sqft).
- Check for pending mutation applications — a pending mutation suggests a recent transaction not yet recorded.
- For agricultural land, verify the land type classification (dry, wet, garden, plantation) matches the intended use.
The RTC is a revenue record, not a title document — it does not confer ownership. However, a mismatch between the RTC owner and the deed chain suggests either a mutation failure or a parallel ownership claim. DeedSure cross-validates owner names across deeds, ECs, and RTCs, flagging discrepancies as HIGH severity.
Khata Certificate Check
In urban Karnataka, the Khata (or Khatha) is a property assessment register maintained by the local municipal body (BBMP in Bengaluru, or the respective city municipality). It records the property in the owner's name for the purpose of property tax assessment under the Karnataka Municipal Corporations Act, 1976.
Verification actions:
- Determine the Khata type: A-Khata (approved plan, fully compliant), B-Khata (revenue layout, may require regularisation), or E-Khata (digital format).
- For BBMP properties, an A-Khata is essential for obtaining building permits, utility connections, and bank loan approvals.
- Check the PID (Property Identification Document) number — this is the BBMP's unique identifier for each assessed property.
- Verify property tax receipts are current — unpaid taxes create a charge against the property.
A B-Khata property may face difficulties obtaining building plan approvals and bank financing. DeedSure flags B-Khata-only properties as MEDIUM severity (anomaly rule CR-012) because while it does not necessarily indicate title defect, it materially impacts the property's usability and resale value.
Land Conversion Verification
Under Section 95 of the Karnataka Land Revenue Act, 1964, agricultural land cannot be used for non-agricultural purposes without a conversion order from the Deputy Commissioner. Since the 2020 amendment, conversion is deemed automatic for lands within BBMP, city corporation, and town municipal council limits, but a formal conversion order is still required for lands outside these areas.
Verification actions:
- If the property is within BBMP/urban limits, verify deemed conversion status per the 2020 amendment (effective 15 September 2020).
- For properties outside urban limits, demand the original conversion order (DC order) and verify it specifies the correct survey number and permitted use.
- Cross-reference the RTC land type — if it still shows "agricultural" but a residential structure exists, the conversion may not be recorded.
- For BDA layouts, verify whether the layout was formed before or after 1 January 2014, which determines whether deemed conversion applies.
Use of agricultural land for non-agricultural purposes without conversion is an offence under the KLR Act. Buildings on unconverted land are technically illegal and can face demolition orders. Banks will not finance such properties.
Court Case Search
A property involved in ongoing litigation poses a significant risk. Court orders can restrain sale, attach property, or declare transactions void. Searching for pending cases is essential but frequently overlooked.
Verification actions:
- Search the eCourts portal (ecourts.gov.in) for cases involving the seller name and/or survey number in the relevant district courts.
- Search the Karnataka High Court website for writ petitions or appeals involving the property or the seller.
- Check for revenue court proceedings (before the Tahsildar or Assistant Commissioner) regarding mutation disputes or land acquisition.
- Verify the property is not on the Section 22A prohibited-registration list under the Karnataka Registration Act (e.g. encroached government land, PTCL grant land, religious endowments).
- For larger properties, check if any land acquisition notification under the Right to Fair Compensation Act, 2013 has been issued.
Purchasing property that is subject to a lis pendens (pending suit) can render your purchase voidable under Section 52 of the Transfer of Property Act, 1882. The doctrine of lis pendens means a buyer during litigation is bound by the court's final decision.
Survey & Boundary Check
Physical boundaries on the ground must match the survey sketch and the schedule of property in the sale deed. The Karnataka Survey Settlement and Land Records Act governs survey operations, and the Mojini (survey sketch) is the authoritative record of property boundaries.
Verification actions:
- Obtain the survey sketch (Mojini/Tippan) from the Surveyor's office for the relevant survey number and hissa.
- Conduct a physical site inspection to verify that boundaries (North, South, East, West) described in the sale deed match the ground reality.
- For larger plots, consider a GPS survey by a licensed surveyor to confirm extent and coordinates.
- Verify the survey number uniqueness: the correct identifier is survey_number + village + taluk + district, not the survey number alone.
- Check for boundary disputes with neighbouring property owners and verify no encroachments exist.
Boundary disputes are among the most common property litigations in Karnataka. A mismatch between the deed extent and the surveyed extent can indicate encroachment, excess land that may be reclaimed by the government, or an incorrect survey number reference.
Stamp Duty & Registration Fee Validation
Under the Karnataka Stamp Act, 1957, stamp duty must be paid on the market value of the property (or the consideration amount, whichever is higher). Underpayment of stamp duty can result in impounding of the document and a penalty up to 10 times the deficiency.
Verification actions:
- Verify the stamp duty paid matches the applicable Karnataka slab on max(consideration, guidance value): 2% up to ₹20 lakh, 3% from ₹20–45 lakh, 5% above ₹45 lakh. Karnataka rates are gender-neutral — there is no women's concession.
- For BBMP / urban properties, verify the additional 2% surcharge and 10% cess on stamp duty have been paid.
- Check whether the consideration amount meets or exceeds the government guidance value for the property's location.
- For documents executed on or after 31 August 2025, verify registration fee of 2% (uncapped) per the Karnataka Registration (Amendment) Act, 2025. Documents executed earlier used the legacy 1% rate capped at ₹30,000.
- For lineal family gifts (spouse, parent, child), verify the concessional ₹1,000 fixed duty under Article 28(b) was applied. For non-family gifts the slab rates apply.
- Check for stamp duty deficit notices (Section 45A proceedings) in prior transaction documents.
DeedSure anomaly rule CR-015 automatically flags any transaction where the consideration is below the government guidance value minimum. While stamp duty deficiency does not invalidate the sale itself, it creates a liability for the buyer and can delay future transactions involving the same property.
See current Karnataka stamp duty rates and calculation examples
RERA Compliance
The Real Estate (Regulation and Development) Act, 2016 requires registration of all residential real estate projects where the land exceeds 500 square metres or the project has more than 8 apartments. In Karnataka, RERA is administered by the Karnataka Real Estate Regulatory Authority (K-RERA).
Verification actions:
- For apartment purchases, verify the project is registered on the K-RERA portal (rera.karnataka.gov.in) and note the registration number.
- Check the approved plan, sanctioned number of units, common area allocation, and project completion timeline on the RERA certificate.
- Verify the promoter has deposited 70% of buyer payments into the designated RERA escrow account.
- Check for any complaints or orders against the promoter on the K-RERA portal.
- For plotted developments, confirm RERA registration is obtained if the criteria (500+ sqm or 8+ plots) are met.
Purchasing in an unregistered project denies you the protections under RERA, including the right to claim compensation for delays, defects, and deviations from the sanctioned plan. Promoters advertising or selling in unregistered projects face imprisonment up to three years.
Power of Attorney Scrutiny
The Supreme Court of India in Suraj Lamp & Industries Pvt. Ltd. vs. State of Haryana, (2012) 1 SCC 656 (judgment delivered 11 October 2011), held that sale of immovable property through General Power of Attorney (GPA) is not a valid mode of transfer. This landmark judgment affects thousands of transactions in Karnataka, particularly in Bengaluru where GPA-based development agreements were prevalent.
Verification actions:
- Identify any GPA in the chain of title. If a GPA was used to execute a sale deed, verify the date of the GPA relative to 11 October 2011 (the Suraj Lamp judgment date).
- Post-Suraj Lamp GPAs used as a substitute for sale are invalid as a mode of conveyance — this is a CRITICAL severity finding.
- Pre-judgment GPA transactions carry HIGH risk and should be carefully examined for whether the GPA was used as a sale substitute or for genuine agency purposes.
- Verify the GPA is registered (not merely notarised) — unregistered GPAs for immovable property transfers carry additional risk.
- Check for revocation: a GPA can be revoked unilaterally by the principal. Verify no revocation deed exists.
DeedSure applies anomaly rule CR-010 to every GPA in the chain. Post-Suraj Lamp GPA sales are flagged as CRITICAL severity because the Supreme Court has unequivocally declared them invalid as a mode of conveyance. Pre-judgment GPAs are flagged as HIGH severity. This is one of the most impactful risk factors in Karnataka property transactions.
Due Diligence at a Glance
| Step | Key Document | Risk If Missed |
|---|---|---|
| Title Deed | Registered Sale Deed | CRITICAL RISK |
| EC Analysis | 30-year EC (Form 15/16) | CRITICAL RISK |
| RTC & Mutation | Pahani from Bhoomi | HIGH RISK |
| Khata Check | A-Khata / E-Khata Certificate | MEDIUM RISK |
| Land Conversion | DC Conversion Order | HIGH RISK |
| Court Case Search | eCourts / HC Search | CRITICAL RISK |
| Survey & Boundary | Mojini / Survey Sketch | HIGH RISK |
| Stamp Duty | Stamp duty receipts | MEDIUM RISK |
| RERA Compliance | K-RERA Certificate | HIGH RISK |
| GPA Scrutiny | Power of Attorney | CRITICAL RISK |
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