You might opt for a resale property if you do not want to go through the lengthy process of construction. The resale property comes with a set of its own benefits. Resale property is suitable for salaried individuals in the property market as it offers a great set of value deals and attractive pricing. You will be able to save a lot of money by purchasing a ready to move-in flat that would have been otherwise spent in paying EMI or rent or needed to be shelled out behind the construction of a new house. Also, you will be able to see ready features and amenities without having to believe in the developer’s promises that we often see in case of properties under construction.
You will also enjoy certain tax benefits from the very first EMI after the possession of the property. But when buying a resale property one might come across some challenges that the property buyer may not be aware of in the initial stages. The challenges such as the need of higher cash down payment, additional expenses such as registration fees, stamp charges, transfer fees and other charges with uncleared dues of the previous owner are the common problems of buyers who buy resale properties. Therefore before purchasing a flat in resale, check out some of the things you must keep in mind.
Verify Original Documents
Before you sign the sale agreement, verify the original property documents carefully with the help of your advocate. The documents to be verified are ownership document, title clearance, previous electricity, water and other utility bill clearance, approval plan, property tax payment and documents of BUC. Checking all relevant documents will save you from any legal issues or financial burdens in future regarding your property purchase.
Check for all approvals, licenses and certificates
Before you purchase a resale property check for the following licences approvals and certificates such as approved building plan, the status of the land title, commencement certificate for work, clearance for the environment, development rights on the purchased property and encumbrance certificate. Also, you have to verify the land use zone according to the master plan of the city. This plan you can get from the local body office of the city. Additionally, check the approvals from Development Corporation and the local body of the city concerned for the layout as a whole. Make sure that your Builders is enlisted with one of the banks so that you can get your property financed easily in case you are planning to take a home loan.
Ensure the Security Services
If you are planning to buy a resale property it is highly advised to make sure that the property is fully safe and secured. Check if the property has proper gating. In case of apartment check for security guards, CCTV cameras and other safety features regarding the environment of the location where the property is situated.
Location is a Major Factor
While purchasing a resale property check whether the location is well-connected to the other parts of the city with proper transportation options and has all basic infrastructural facilities such as schools, hospitals, malls nearby.
You Will Have to Bear Some Post purchase Cost
After purchasing a resale property you will be required to bear a few costs like fees for advocate and brokerage charges. For transferring utilities in your name such as electricity and gas connections you will need a moderate amount to be paid to the concerned authorities. A club membership fee will also be obtained. Some repairs and renovation costs might be included as well. If you purchase the property through a property consultant then you have to pay charges for it.
Check for the Current Ownership
Before investing in a resale property check whether the property was previously owned individually or jointly. If the property was owned by joint owners then make sure that the property has been put on sale after receiving no objection from all the owners concerned. It is also necessary to verify whether the seller is the true owner of the property or not. You will have to ask for original sales deed and documents that indicate the chain of ownership of a property from the time of construction. The sales deeds of every previous owner should be registered and stamped duly. The property should also be free from any kind of encumbrance and have clear marketable title.
Check if Property is Free from Encumbrance
Before purchasing a property on resale make sure that the previous owner has not mortgage it and not clear the debt. In case there has been a history of the property being mortgaged, ask your seller to produce a ‘no dues certificate’ issued by the concerned Bank indicating that the loan has been closed.
Physical State of the Property has to be verified
Before making a decision to purchase a resale property make sure that you physically visit the site to examine the state of the property. The ideal age of a resale property ranges between 1 to 10 years. The older properties especially flats will have a lot of issues regarding maintenance. Also, home loan on old properties is not easy to obtain.
Check Availability of Basic Amenities
Before buying a flat on resale remember to check the availability of basic amenities like swimming pool, club, Park, playground, gym, Golf Course etc. The owner can charge you extra money for these amenities.
