Buying a plot from a company seller feels safe because the brand looks credible. But a company is a separate legal person, which means you must check authority, approvals, and compliance before you sign. Here is a simple, practical guide for Chennai buyers and Padappai plot investors to verify everything the right way and close with confidence.
Why entity type matters
When the seller is an LLP or a Private Limited company, the people who sign are only representatives. They need legal authority from the entity to sell land. Your job is to confirm that the company actually owns the property, that there are no hidden charges, and that the signatory has the power to transfer title to you.
Step one: confirm who owns the land
Ask for basic ownership evidence and match names exactly.
- Mother deed or parent documents that show how the LLP or Pvt Ltd acquired the land
- Latest patta, chitta and adangal extracts in the name of the company
- Encumbrance Certificate for at least 30 years from the Sub Registrar Office
- FMB sketch and field map reference to match survey numbers and extents
If the layout is approved, ask for the DTCP approval number and layout plan. For Padappai and the Oragadam belt, DTCP approvals are standard. If the project is registered, collect the Tamil Nadu RERA registration number and download the details for your file.
Step two: verify the company on MCA
Do a quick check on the Ministry of Corporate Affairs website to see the real status of the seller.
- Master data status should be active
- Registered office and name must match all sale documents
- Directors or designated partners must be current and not disqualified
- Look for any registered charges in favour of banks on the MCA charges tab
If there is a loan or charge on the company assets, ask for a lender NOC for the specific survey numbers you are buying. This protects you from future claims.
Step three: check authority to sell
People sign on behalf of an entity only if they are empowered to do so.
For a Private Limited company
- Board Resolution approving the sale, describing the land, price, and the authorised signatory
- Certified copy of the Memorandum and Articles to confirm that the company can sell immovable property
- Specimen signature and ID proof of the authorised signatory
For an LLP
- LLP Agreement and any supplemental deeds that allow sale of assets
- Partners Resolution authorising the transaction and naming the authorised signatory
- Designated Partner identification and specimen signature
If a Power of Attorney is used, ensure it is properly stamped and registered, and that it gives clear powers to execute, register, and receive sale consideration.
Step four: confirm clear title and freedom from claims
Beyond basic title, look for any restrictions that can block your enjoyment or bank loan.
- Fresh Encumbrance Certificate up to the latest month for the exact subdivision you are buying
- Litigation search in the district courts portal for the company name and survey numbers
- Revenue tax receipts paid till date
- No objection letters from association or developer if common areas or internal roads are involved
For plotted layouts, your sale deed schedule must match the DTCP layout plan, internal road widths, parks and OSR areas. Ensure your plot lies within the approved grid and does not encroach on any reserved space or easement.
Step five: RERA and consumer protection
If the layout is registered with Tamil Nadu RERA, you will find uploaded approvals, layout plans, and sanctioned documents on the portal. Collect a copy for your records. RERA adds transparency on title, development timelines, and common amenities. It also creates a path for grievance redressal if needed.
Step six: taxes, payments and registration hygiene
Small details keep your file clean.
- All payments should go to the company bank account and match the sale consideration
- GST is generally not applicable on sale of land but confirm if any development components are bundled
- If TDS is applicable under income tax provisions, deduct and file correctly with the seller’s PAN
- Ensure the market value for stamp duty matches the guideline value for your survey and sub division in Padappai
Step seven: documents you should receive on or before registration
Create a simple bundle that future buyers and banks will love.
- Copy of Board or Partners Resolution and, if applicable, registered Power of Attorney
- PAN of the entity, GST details if any, and address proof
- DTCP approval letter, approved layout plan, and RERA registration certificate if registered
- Mother deed set, latest EC, patta and tax receipts
- Indemnity and non encumbrance declarations from the seller
- UDS of road or association handover letters if relevant
Extra care for Padappai and Oragadam belt buyers
Padappai is in a fast growing corridor touching Oragadam’s industrial ecosystem. This brings lender finance, speed of resale, and strong demand for well documented plots. Clean layout approvals, visible internal roads, stormwater planning, and clear boundary stones all matter. When you buy inside a DTCP and RERA compliant community like Velammal Garden, you also benefit from a professional handover and organised documentation that makes future construction simpler. Explore more at velammalgarden.com and book a site visit to see how documentation is maintained for every plot.
Red flags to pause the deal
- Entity status is strike off or under insolvency
- Name on title documents does not match the current entity name
- Charges on MCA without lender NOC
- Signatory has no clear resolution or power
- Plot measurements on ground do not tally with the DTCP plan
If any red flag appears, ask the seller to cure the defect or consult a local property lawyer before proceeding.
Simple closing checklist you can carry to the registrar office
- Your KYC set and photographs
- Demand draft or bank proof for consideration paid to the company
- Sale deed draft vetted by a local advocate
- All annexures and approvals printed and initialled
- Time slot booking at SRO with accurate survey and sub division details
A little discipline at this stage ensures your investment is future ready, loan friendly, and resale smooth. For a worry free experience, shortlist communities that maintain transparent files and buyer friendly checklists. Velammal Garden follows a structured documentation process for every plot so your registration day is quick and clear. Visit velammalgarden.com to get the document pack preview and plan your site visit.
FAQs: what if the seller is an LLP or Pvt Ltd dtcp rera tamil nadu
Is it safe to buy from an LLP or a Private Limited company in Tamil Nadu
Yes, it is safe if you verify title, DTCP approval, RERA registration where applicable, and confirm the signatory’s authority via Board or Partners Resolution. Always collect EC, patta, tax receipts, and lender NOC if there is a registered charge.
What documents prove the authorised person can sign my sale deed
For a Private Limited company, a Board Resolution that names the property and the authorised signatory. For an LLP, a Partners Resolution and a copy of the LLP Agreement. A registered Power of Attorney is valid if it clearly permits sale and registration.
How do I check if there is a bank loan on the land
Search the MCA charges section for the company and cross check the Encumbrance Certificate at the SRO. If a charge exists, insist on a specific NOC from the lender for your survey numbers before registration.
Do I need RERA for plotted developments in the Padappai Oragadam belt
If the layout meets the RERA thresholds, registration is compulsory. RERA helps you see approvals, layout plans, and disclosures in one place. Even if the layout is exempt, you still need DTCP approval and a clean title file.
What should my sale deed include when the seller is an LLP or Pvt Ltd
It should include the full entity details, CIN or LLPIN, registered office address, the enabling Resolution or POA, precise plot schedule as per DTCP plan, and declarations on encumbrance, possession and indemnity. Attach copies of approvals and RERA registration if applicable.
Buying from an LLP or a Private Limited company is straightforward when you know what to ask and where to verify. Follow this checklist and choose communities that value transparency, so your plot in Padappai becomes a strong, long term asset from day one.
