Ten Red Flags That Should Stop a Property Deal
Signals that a transaction is going to go wrong, and why 'we'll sort it after registration' never happens.
Most property disputes were visible before the money moved. The signals were there and somebody decided not to look, usually because the price was good and the process was already underway.
1. The seller resists document scrutiny
"Why do you need the chain documents, the sale deed is enough." "My lawyer has them, he's travelling."
This is the single most serious signal. Everything else on this list has an innocent explanation; this one usually does not.
2. Pressure to hurry
An artificial deadline, another buyer who will decide tomorrow, a discount that expires this week.
Legitimate sellers accept the time proper verification takes. Pressure exists to prevent verification.
3. A price well below the market with no explanation
Distress sales are real and there is nothing wrong with buying one. But there is always a reason, and the reason should be verifiable. An unexplained discount is usually a title problem, an occupancy certificate problem, or a dispute.
4. Sale through a power of attorney with no direct owner contact
POA sales are legitimate. A POA sale where you can never speak to the actual owner is not. Verify the POA is registered where required, specific to this property, still valid, and that the principal is alive.
5. Missing occupancy certificate
For a completed building, this is not paperwork pedantry. It affects legality, loan eligibility and your ability to resell, and there is nothing you can do about it afterwards.
6. Gaps in the title chain
An unexplained transfer, a missing deed, a period nobody can account for. These surface years later, usually brought by a person who was never asked.
7. Not every owner is available to sign
Joint ownership, inherited property, or family property where one sibling is "abroad and fine with it". Every entitled person signs, or you do not buy.
8. What exists does not match the approved plan
Enclosed balconies, additional rooms, a covered terrace. Unauthorised construction becomes your liability, and in some cases your demolition order.
9. Outstanding dues nobody will confirm
Property tax gaps, unpaid maintenance, an approved special assessment. Ask for the no-dues certificate. Resistance to producing it is informative.
10. Cash demanded as part of the consideration
Beyond being a compliance problem, it means part of your payment has no record. If the deal goes wrong, that portion effectively did not happen.
The rule
Nothing is fixed after registration.
Before the money moves, the seller wants to close and will cooperate. After it moves, they have what they wanted, and your only remaining option is litigation — slow, expensive, and uncertain.
Every problem gets resolved before payment or the deal does not proceed.
What to do when you see one
- Stop the process. Not pause with a token already paid — stop.
- Put the question in writing.
- Give it to your lawyer, who you engaged before paying anything.
- Accept that walking away from a good price is sometimes the correct outcome.
For agents
You will occasionally lose a commission by raising one of these. You will also avoid the transaction that ends with a client's money in a dispute and your name attached to it.
That trade is not close, and clients who watched you stop a bad deal are the ones who send you three more.
None of this is legal advice — every purchase needs a lawyer engaged by the buyer, before any payment.
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Try PropVid freeFrequently asked questions
What is the most serious red flag?
A seller who resists giving documents to your lawyer. Every other problem has a possible explanation; that one almost never does.
Can problems be fixed after registration?
Rarely, and never on the seller's timeline. Once the money has moved, the seller's incentive to cooperate disappears entirely. Everything must be resolved before payment.
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