The 10-Point Due Diligence Checklist Before Buying Any Auction Property

Auction properties reward preparation. Every successful purchase we’ve closed in the last decade started with the same disciplined checklist — not with the auction notice, but with the legal and physical history of the asset. Run through these ten checks before you transfer a single rupee of EMD.

1. Title chain (30 years) — Trace the ownership history through the parent document, sale deeds and mutation entries.

2. Encumbrance Certificate — Pull a fresh EC for the last 30 years from the Sub-Registrar.

3. Approved building plans & OC — Confirm the structure is sanctioned and has Occupancy Certificate.

4. Society NOC & dues — Ask the society for outstanding maintenance, transfer charges and any restrictions on auction transfers.

5. Possession status — Verify whether the bank holds symbolic or physical possession; this single point decides whether you’ll need a separate court order to enter the flat.

6. Pending litigation — Search DRT, High Court and consumer forum records for any challenge to the auction.

7. Property tax receipts — Last three years, free of arrears.

8. Utility dues — Electricity, water and gas, with no disconnection notices.

9. Physical inspection — Visit the property, photograph the condition, talk to neighbours and the watchman about who currently occupies it.

10. Reserve price vs market price — Independently value the property using at least three comparable resale listings within a 1 km radius. If the discount is below 8–10%, the risk-reward usually does not justify auction-specific costs like stamp duty, registration and our consultancy fee. Walk away — there will always be another auction next month.