Commercial Property Due Diligence Checklist India
15 Things to Verify Before You Buy

Verify the title chain — who currently owns the land and how they came to own it. For government land (like PPP projects), verify the land vesting order that confirms the government holds title and has granted development rights to the concessionaire. A clean title means no disputed ownership going back at least 30 years.

An Encumbrance Certificate (EC) from the Sub-Registrar's office shows all registered transactions on the property — mortgages, sales, liens, court attachments. A clean EC means the property has no undisclosed financial claims. Applicable for freehold land; for government PPP projects, verify that the developer has no loans secured against the specific project rights.

For standard private developer projects, look up the RERA number on the state RERA portal. For government PPP projects, RERA may not apply — the equivalent protection is the government concession agreement signed with the state authority. Verify which framework applies to your specific project before booking.

Confirm the land is zoned for commercial use. Commercial property built on land zoned residential or agricultural is illegal and cannot be registered in your name. Check the Master Plan or Zonal Plan for the area. For Ghaziabad, this is the GDA (Ghaziabad Development Authority) or MCG zoning.

The building plan approved by the local authority (GDA, municipality, or NOIDA/Greater NOIDA authority) confirms the structure being built is legally sanctioned. Verify that the approved plan matches what is being marketed — floor counts, unit types, built-up areas.

For multi-unit commercial projects, the layout plan shows each unit's position, area, and boundaries. This is the plan from which the builder-buyer agreement draws the unit details. Mismatches between the marketing brochure and the approved layout plan are a red flag.

A No Objection Certificate from the Fire Department is required for commercial buildings above a certain height (typically G+3 or more). Without a Fire NOC, the building cannot receive an Occupancy Certificate (OC), which is required for legal possession. Confirm the fire NOC has been applied for or obtained.

Commercial projects above a certain built-up area require Environmental Clearance (EC) from the State Environment Impact Assessment Authority (SEIAA). Without EC, construction is technically illegal and the project cannot receive an OC. Ask the developer to share the EC order reference number.

Check completed projects by the developer — how many have delivered on time, how many are delayed, and whether possession was given with OC. For listed developers, BSE/NSE filings are public and show project completion status, ongoing litigations, and financial health. Unlisted developers have less disclosure obligation.

Understand how the project is being funded — buyer advances only, or bank construction financing. Projects funded solely by buyer advances are higher risk if sales slow down (the developer runs out of money mid-construction). Projects with a bank construction loan have an institutional check on fund usage. For PPP projects, the concession framework typically includes government oversight of fund utilisation.

If a reputable bank (SBI, HDFC, ICICI) has empanelled the project for commercial property loan disbursement, it means the bank's legal and technical team has already reviewed the project documents and found them satisfactory. This is not a guarantee but it is a meaningful independent validation of the project's document quality.

Read the complete BBA before signing. Key clauses to check: possession date commitment and penalty for delay, force majeure definition (if too broad, developer can delay indefinitely without penalty), maintenance charges structure, exit/resale conditions, area deviation allowance (±5% is standard; watch for higher limits), and what happens if the project is cancelled.

Get the complete cost breakdown in writing: property price, GST (12% on under-construction commercial), stamp duty (7%) + registration (1%), maintenance deposit, electric/water connection charges, parking charges. The all-in cost is typically 20–25% more than the headline property price. A developer that only quotes the base price and leaves out GST, stamp duty, and other charges is understating your actual outflow.

Confirm that the unit can be registered in your name and subsequently sold or gifted without developer permission (or with a reasonable procedure). For PPP projects with concession-based ownership, verify the transferability clause in the concession agreement — whether unit sale requires the original concessionaire's consent and what fees apply.

The BBA should state a specific possession date with a penalty clause for delay. More importantly, confirm that possession will be given with an Occupancy Certificate (OC) — not just a completion certificate. An OC from the local authority is required for legal occupancy and for registration in your name in most states. Possession without OC leaves you in a legally ambiguous position.