In short
Before buying a pre-leased commercial property, verify four things: the lease (rent, lock-in, escalation, exit terms and registration), the tenant (identity and payment record), the title (clear ownership with no undisclosed loans) and the building's approvals. Have a property lawyer review the documents before you sign or pay a deposit.
1. The lease agreement
- Get a full copy of the lease deed and any amendments, not a summary.
- Check that the lease is registered. Under the Registration Act, a lease for more than one year must be registered to be fully enforceable.
- Note the start date, total term, lock-in period and the notice the tenant must give to leave.
- Read the escalation clause: how much the rent rises and how often.
- Confirm the security deposit amount, and that it will be transferred to you at sale.
- Check who pays maintenance, property tax, insurance and repairs.
- Look for clauses that let the tenant exit early, reduce rent, or sublet.
2. The tenant
- Confirm the tenant's legal name matches the lease.
- Ask for proof that rent has been paid: bank statements showing rent credits, and TDS certificates (Form 16A) issued by the tenant.
- Ask whether there are rent arrears or disputes.
- Consider how much of the building or your income depends on this one tenant.
- Ask the seller to arrange a tenant attornment letter, in which the tenant confirms the lease and agrees to pay rent to you.
3. Title and ownership
- Check the chain of title documents showing how the seller came to own the property.
- Search the sub-registrar records for registered sale deeds and mortgages.
- If the property is mortgaged, get a no-objection certificate (NOC) from the lender and a plan for closing the loan at sale.
- Confirm property tax and maintenance dues are paid up to date.
- Check for pending litigation involving the property or the seller.
4. Building approvals
- Ask for the Occupation Certificate (OC) for the building, issued by the competent authority (in Haryana, DTCP or the municipal corporation, depending on the project).
- Confirm the unit is approved for commercial use and the tenant's use matches it.
- For projects that fall under RERA, check the registration on the Haryana RERA website (haryanarera.gov.in).
- Check fire safety clearance where it applies to the building.
5. Price and costs
- Work out the net yield, not just the gross yield. See our rental yield guide.
- Compare the current rent with rents for similar space nearby. Rent well above market is a risk at renewal.
- Budget for stamp duty, registration, legal fees and brokerage.
- Plan for TDS: deduct and deposit TDS on the purchase price where Section 194-IA applies.
Documents to request
This checklist is general information, not legal advice. Use a qualified property lawyer for the title and document review.
| Document | Why it matters |
|---|---|
| Registered lease deed | Sets out rent, term, lock-in and exit rights |
| Rent receipts and bank statements | Proves the tenant is paying |
| TDS certificates (Form 16A) | Independent record of rent paid |
| Title deeds and chain of title | Proves the seller owns the property |
| Encumbrance search / lender NOC | Shows there are no undisclosed loans |
| Occupation Certificate | Shows the building is approved for occupation |
| Latest tax and maintenance receipts | Shows there are no unpaid dues |
Frequently asked questions
Should the lease on a pre-leased property be registered?
Yes. A lease for more than one year must be registered under the Registration Act. An unregistered long lease is harder to enforce, which weakens the income you are paying for.
How can I verify that the tenant is really paying rent?
Ask for bank statements showing regular rent credits and the TDS certificates (Form 16A) the tenant issues. TDS certificates are useful because they come from the tenant's own tax filings.
Where can I check a project's RERA registration in Haryana?
On the Haryana Real Estate Regulatory Authority website, haryanarera.gov.in, which lists registered projects and agents.
Next steps
This guide is general information, not legal, tax or investment advice. Rules and rates change; confirm details with a qualified lawyer or chartered accountant before you act. Rental income and returns from property are not guaranteed.