Guide · Buying

Buying a home in India: the steps, state by state

From budget to registered sale deed and mutation: RERA, agreement for sale, 1% TDS, GST on under-construction flats, and what changes from state to state.

Checked on against the official sources at the bottom of the page.

In short

Buying a home in India follows one path: budget and loan, search, checks on the project and the title, a written agreement for sale, payment, a registered sale deed, then mutation in the land or municipal records. Several rules are central and the same everywhere (RERA, GST, the 1% TDS under the Income-tax Act 2025, RBI loan rules). Stamp duty, registration charges, the RERA authority, mutation and housing-society rules are set by each state, so a Maharashtra figure never applies to Karnataka or Delhi. A sale only transfers a home of ₹100 or more by a registered instrument (Transfer of Property Act, s. 54).

1. Set a budget that includes the extras

The price is not the cost. Add stamp duty and registration charges (state), GST if the flat is still under construction (central), and the cost of your loan. Use the stamp duty calculator and read stamp duty and registration charges in India for your state. For the loan, see the home loan calculator. On 7 October 2026 the RBI raised the repo rate by 25 basis points to 5.50% and moved to a “calibrated tightening” stance, so do not assume rates are falling (rate guide).

2. Know what you are buying

  • Under construction: the project must be registered with the state RERA authority before it is advertised or sold (RERA Act s. 3(1)). See how to check a RERA registration. GST applies (GST guide).
  • Ready or resale: the seller must show a chain of title documents. Ask for the occupancy certificate and, in a housing society, the share certificate (resale flats and societies).
  • Area: ask for the carpet area, the only area RERA defines (carpet and built-up area).

3. Check title, charges and approvals

Order a title search and an encumbrance certificate (guide), and ask for the occupancy and completion certificate. The Transfer of Property Act obliges the seller to disclose material defects in the title the buyer could not discover with ordinary care and to produce title documents for examination (s. 55(1)). The DoLR evaluation of Gujarat notes that the Sub-Registrar office there does not verify title deeds at registration: registration is not a title guarantee.

4. Sign the agreement for sale

Under RERA s. 13 a promoter cannot take more than 10% of the cost as advance or application fee without first signing a written, registered agreement for sale. The agreement fixes the payment schedule and the possession date. See agreement for sale and sale deed.

5. Pay, and deduct TDS if the price reaches ₹50 lakh

When you buy from a resident seller and the consideration or stamp duty value reaches the ₹50 lakh threshold, you deduct 1% of the higher of the two and file Form 141, Schedule B (formerly Form 26QB). The TDS comes out of the price you owe, it is not an extra. See TDS on property purchase. If the seller is non-resident, different rules apply (Table Sl. No. 17 of s. 393(2)).

6. Register the sale deed

The deed is presented at the Sub-Registrar’s office in whose jurisdiction the property lies, within four months of execution (Registration Act, s. 23), with both parties and their photographs and fingerprints (s. 32A). Details in property registration process.

7. Mutation and after-sale steps

Registration does not by itself change the revenue or municipal record. Apply for or follow the mutation, transfer society membership, and change the property tax and utility accounts.

What differs by state

ItemWhere it is set
Stamp duty, registration fee, women’s concessionState stamp and registration law (concession)
Circle rate or guidance valueState registration or revenue department (guide)
RERA authority, rules, forms, feesEach state or UT authority
Mutation: name, timeline, systemState revenue department
Housing-society transfer feeState co-operative societies law
Property taxMunicipal corporation (guide)

Central, same everywhere: RERA Act 2016, GST, the Income-tax Act 2025 (in force since 1 April 2026), RBI and FEMA rules.

What it costs

  • TDS (resident seller): 1% x higher of consideration or stamp duty value, if at least ₹50 lakh.
  • GST (under construction): effective 1% for affordable and 5% for other apartments, without input tax credit, after the value of land.
  • Stamp duty and registration: state rates; see your state’s guide.
  • Buyer’s tax trap: if the stamp duty value exceeds the price by more than the higher of ₹50,000 or 10% of the price, the excess is taxed as the buyer’s income (Income-tax Act 2025, s. 92(2)(m)(ii)).

NRIs and OCIs: see NRIs buying property in India.

Which professional to consult

A property lawyer (advocate) enrolled with the State Bar Council for title and the agreement; a registered valuer or architect if you doubt the building; a home loan lender regulated by the RBI or NHB. See professions.

Frequently asked questions

Is an agreement for sale enough to become the owner?

No. A sale of a home worth ₹100 or more is made only by a registered instrument (Transfer of Property Act, s. 54), and an agreement for sale does not itself create an interest in the property.

How long do I have to register a deed?

Within four months of execution, with limited extensions on payment of a fine (Registration Act, ss. 23 to 25).

Is stamp duty the same in every state?

No. It is a state subject, with different rates and concessions.

Can I buy a flat in an unregistered project?

RERA requires registration before a project is advertised or sold. Projects of up to 500 square metres of land or eight apartments, or with a completion certificate before RERA, are exempt (s. 3(2)).

Who deducts the 1% TDS?

The buyer, on payments to a resident seller, then files Form 141.

More guides on buying

Sources

All guides · Payotte India