How to verify a property owner before you pay a token amount

General information, not legal advice. For a purchase, have a lawyer check the title before you pay a significant amount.

Check three things before you pay any advance: that the person you are dealing with really owns the property or is authorised to act for the owner, that the property can legally be let or sold, and that you get a written receipt for what you pay. Pay nothing to anyone who rushes you or who will not let you see the property and the papers.

How do I know the person is the owner?

1. Ask to see a government photo ID, and match the name to the ownership papers.
2. For a purchase, ask for the sale deed or allotment letter, and the latest property tax receipt in the same name.
3. For a rental, ask for the same papers, or the latest electricity or water bill, and compare the name.
4. Meet at the property. Be cautious of anyone who is always unreachable, or who only wants to talk by message.
5. If a broker or relative is dealing for the owner, ask for a written authorisation and speak to the owner yourself.

What are the warning signs?

• The rent or price is far below similar homes nearby. See how to spot a bad property ad.
• You are asked to pay before seeing the property, or to pay to 'hold' it the same day.
• The owner is 'abroad' or 'in the army' and asks you to send money to receive keys.
• The photos do not match the building or the neighbourhood.
• They will not put anything in writing, or the name on the papers keeps changing.

How should I pay the token amount?

• Pay by bank transfer or UPI to an account in the owner's name, not cash and not to a third person.
• Get a signed receipt that states the amount, the date, the property address and what the amount is for.
• Write down whether the token is refundable, and under what conditions, before you pay.
• For a purchase, ask your lawyer to review the token or agreement-to-sell paper first.

What does Bhavano verify?

Bhavano shows whether a listing is posted by an owner or an agent, and lets you message the poster. We do not inspect properties or check ownership papers for you, so the checks above are still yours to do. Our trust page explains what we do and do not verify.

Visiting soon? Use the flat viewing checklist, and read the documents checklist before you buy.