Buying a Resale or Pre-Owned Property
If you are buying a resale property or Pre-Owned property, here are some important aspect that you should check for before buying them.
Age of building or construction date of property:
If you are buying a property older than 10 years, you need to check the durability and quality of the building. This not only helps to buy a quality building but also helps you to avoid huge repair and maintenance after you purchase the property.
Debt free property:
While buying a property, check the debt status of the property. Check whether the property is under mortgage and if it is under mortgage, what is the status of the debt, whether the property or building has approval from authorities, taxes and other bills are duly paid, etc. Ask for a release certificate from the bank to ensure that the seller has paid back all the amounts due on the property.
Registration of property:
Check the registration of the property and ensure that all documents relating to the property are available. Get a legal expert’s opinion to verify the registration of the property. Check whether the property is included in the government registry.
Property free from disputes:
A property for resale may have some court cases or legal hassles going on related to family disputes. Ensure that the property is free from disputes and you are buying property from the real owner or the person who has the right to sell the property.
Cash component:
The seller of the property may want the portion of the selling price in cash and the remaining in cash or cheque as is comfortable with you. In such cases, you may not get a home loan on the full price you are paying for the property. Check whether you can afford that.
NOC:
While buying a resale property, ensure that the building is constructed according to plans and the layout is approved by the authorities. Ensure that the seller has certificates such as completion, occupancy and NOC (No Objection Certificate) from the respective authorities.
Before buying a property, discuss with experts and real estate agents in your neighborhood. You should not make your decision in a hurry by blindly believing the seller or agent. Buy the property only if you feel that it suits you best. Visit as many properties as you can and select the best one from them. Ensure that you get all the documents and that the property is debt-free.
If you are investing on your second property, remember that you have to pay income tax and wealth tax for the property that is not a self-occupied home.
If you are buying property for renting, it is recommended to consider the area and location of property to see that it is in the vicinity of important amenities. These simple precautions help you to buy your dream home or property.
