CHECK BEFORE BUYING A RESALE PROPERTY

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CHECK BEFORE BUYING A RESALE PROPERTY

Buying an old property could be trickier than buying a new one. Here is a checklist to be kept in mind

Investing in a property or buying a property is no joke, as people put in their lifetime’s saving in it. While buying an old property, there are more than usual questions that are to be asked to oneself.

Here is a checklist that should be considered before buying an old property:

LEGALITY: Ensure that there are no other claimants to the property. Check whether the property has joint ownership, and if yes, ensure that all coowners have authorised the sale. Seeking the property titles along with original documents will help in knowing if the existing owner has bought the property on resale. In case, any of the documents from the chain of titles is not stamped as regulated, the banks might refuse to offer a loan for the purchase of a resale property. This is one of the most important points that is to be considered while doing any such transaction. Although it is extremely time-consuming, it’s still worth investing time into.

DUES, IF ANY: Ask yourself, is it a disputed property? One should make sure that the property is free of all legal dues at the time it is being sold in resale. Copy of the title documents including the sale deed in case it is a third of fourth resale in the name of the present seller should be sought.

A CHECKLIST FOR RESALE PROPERTIES:

One might also have difficulty in seeking a loan if the resale property is older than 10 years; Receipts of payments made to the developer and builder buyer agreement are needed; A possession letter from the developer to the original allottee is a must to buy a resale property; To find out the exact reason behind selling the property is extremely important.

ATTENTION: FIRST-TIME HOME BUYERS

HERE’S A QUICK GUIDE TO HELP YOU THROUGH THE CUMBERSOME TECHNICALITIES OF ACQUIRING A HOME LOAN

Today, buying your own home is not only a basic need, but also brings along a sense of pride, achievement, freedom and security. Deciding to buy a home is one of the biggest steps one can take in life and, for most of us, it’ll be one of the biggest investment decisions. So, it’s imperative to make sure it is done wisely as there are many things to take into account when you buy a home. The most important thing is deciding what you want. This includes the kind of home you are looking for, its location, amenities, and surroundings among others.

Once sure, strive for a good credit rating as lenders will be more than happy to sanction you a loan if you show them a good credit history in terms of not being overburdened by credit card bills, mortgages and other loans. Club all your incomes (your spouse’s earnings, additional perks, rent, agricultural proceeds and any other revenue earned by your family) to move to a higher eligibility bracket and get the best deal.

THE HOME LOAN GUIDE

Often, acquiring a home loan becomes a tedious task due to a lack of information and a bad credit history. Make sure you have no bad loans when you apply for one.

THE FIRST BUY

Buying one’s first property is not only an important financial decision, but also has a lot of emotional value. Therefore, choose wisely and invest well.

DOCUMENTS REQUIRED:

A broad list of documents required by Housing Finance Institutions (HFIs) is detailed below (it may vary depending on the creditor and background of the debtor).

INCOME DOCUMENTS: Income proof, salary certificate, IT returns, bank statements, etc;

PERSONAL DOCUMENTS: ID and age proofs like PAN card/ Aadhar card/ election card/ passport/ driving license, etc;

RESIDENCE PROOF: Residence proof like recent telephone bill/ electricity bill/ property tax receipt/ bank account passbook/ statement for the previous six months;

BUSINESS PROOF: Businessmen/ industrialists need to furnish business address proof.

WORK EXPERIENCE PROOF: Select banks clamp in a condition of the loan applicant possessing a given amount of experience in the current company;

LEGAL DOCUMENTS: There are many legal documents that need to be furnished to acquire home loan. Make sure you have all those handy;

A copy of the offer letter issued by the HFI;

Title documents of the property, which include: duly registered sale agreement; receipts of your own contribution; allotment letter; registration receipt; etc;

Land documents indicating ownership: possession letter; lease agreement; mortgage deed (if the HFI opts for a registered mortgage);

NOC from the developer, society or development authority;

Personal guarantees, if required;

Documents for alternate or additional security;

Post dated cheques for the EMIs, etc.

ACT OF LABOUR

The Real Estate Regulation Act (RERA) will go a long way in protecting the rights of home-buyers

Purchasing a home is one of the major financial decisions that you take in your life. Hence, if you are planning to invest lifetime of your savings in real estate, then one of the most common advice one will get from experts is to be diligent while choosing a builder. Being diligent means taking notice of the builder’s previous projects, quality of service provided, compliance with the plan, etc.

But unfortunately, the real estate sector was plagued with fraudulent builders and fly-by-night operators, which led to many of the buyers being cheated and losing their hard-earned money. In fact, they used to indulge in malparactices and fool the buyers. All such activities led to the downfall of the realty sector with consequences being felt far and wide.

Instances of buyers being cheated had become rampant and were on the rise. In fact, builders promised to complete the project on time, but they delayed the construction even after making full and final payments. They even misrepresented the building plan with wrong measurements and usage of sub-standard materials – in addition to not providing agreed quality of products for construction while indulging in all sort of fraudulent activity.

All these instances led to a need of a real estate regulator in order to protect home-buyers and bring about transparency between realtors, real estate agents and buyers’ therefore; The Real Estate (Regulation and Development) Act, 2016 (RERA) was formulated by the government of India and every state had to implement it in full earnestness form May 1, 2017.

The Real Estate Bill was published in the Official Gazette on March 26, 2016 by the central government. And the bill may be considered as model law because ‘land’ being a state matter, the states are given flexibility to modify/add their own set of rules. While a majortiy of the states have notified the Act, the rest are in the process of implementation.

In fact, Maharashtra is among the first states to implement RERA and set-up a regulatory authority. And in the time to come, both buyers and developers will only benefit from this regulatory body as it will help regain the trust of the buyers back, which the market had lost due to fraudulent and inconsistent practices.

THE SEARCH FOR YOUR DREAM HOME ENDS HERE!

If you have been scouting for your dream abode, the 15th edition of the Times Property Home Fair 2017, held on 11-12th November 2017, at Hall 7 in Bombay Exhibition Center, NSE Complex, Goregaon east, Western Express Highway, is a great place to be. Showcasing the best home options from all over Mumbai, Virar, Thane and beyond, the expo is a onestop-shop where a plethora of properties will be displayed under one roof.

Over 100 leading developers are participating in the grand event, which will attract over 5,000 prospective buyers, over two days. By virtue of its strategic location to the international and domestic airports, excellent connectivity via the Western Express Highway, well-developed infrastructure, shopping and entertainment options, also the presence of many MNCs and corporate offices—the expo should be your one-stop destination.

With the change in the consumer behaviour pattern, this target audience is inclined to invest in property for personal usage or investment across various markets.

Also, leading developers will be displaying projects from the western suburbs, central suburbs, Pune, Thane, Vapi, Valsad, Khardi with many more banks and financial institutions offering lucrative funding options. Therefore, don’t miss this chance to own your dream abode and visit the show today!

MUMBAI RESIDENTIAL PROPERTY PRICE INDEX

REALTY TERMS DECODED

 

Some real estate terms in practice could also confuse buyers. Here we simplify them for you.

CARPET AREA is the area within the walls of an apartment that is for the exclusive use of the buyer. Normally in large societies, with many common amenities, the carpet area could be as less as just 2/3rd of the built-up area.

BUILT-UP AREA includes the carpet area and thickness of external walls, internal walls, lobbies and corridors, basements, atriums, etc.

SUPER BUILT-UP AREA

includes common amenities, such as the area of lift shafts, lobby, and corridor, proportionately divided among all flats. Common usable areas such as a swimming pool, garden and club house, may also be included. Per square foot rate quoted by the developer is typically applied on the super built-up area. BSP is Basic Sale Price of the apartment that the builder advertises and more often than not there are other add-on charges like PLC, floor charges, car parking, club charges, electricity connections, etc.

PLC is Preferential Location Charges that the apartment commands and normally parkfacing, pool-facing and other visually attractive views command better premium compared to less attractive views like road-facing apartments.