Planning to buy a resale property? Well, this is not a bad choice as the cost of EMI a homebuyer pays for buying a resale property is equivalent to monthly rental. However, buying a resale property involves a lot of intricacies. Hence, in this blog post, we let you know the key things to remember while buying a resale property.
This is the first thing that a homebuyer should look for. Visit the office of the registrar and check for previous owners of the property to create the chain of title-holders. After analyzing this, the homebuyer is provided with a title report that holds complete details about tax rate related to the property, names of title holders, encumbrances if any and more.
A loan is often taken against the property and hence NOC i.e. No Objection Certificate must be availed from the bank to showcase zero outstanding dues. This document is essential to avail while buying a resale property as the new owner has the right to know if the property has any outstanding debt or not. A NOC proves that no loan or debt is pending against it’s the respective property.
This is one of the most important things that a homebuyer should look for while buying a resale property. Every homebuyer is suggested to either ask the seller for a building plan or visit the concerned authority to verify a building plan. This is of utmost importance as buying an illegally constructed property can land you trouble. The authority has the right to bring down the structure anytime if the building plan is not sanctioned from the concerned authority.
Hence, check for the building plan before buying a resale property.
A homebuyer must ask for both these documents as the concerned authority can deny providing basic facilities to him/her if the developer/seller has not obtained any one of the above mentioned documents from the respective authority. Both these documents prove that the developer raised this building while sticking to the building bylaws framed by the Government.
Absence of any of these documents refrain you from availing all kinds of civic amenities.
Out of many necessary documents for purchasing a resale property is an encumbrance certificate. This legal document showcases the current liability status of the asset. The certificate states that the property is 100% debt-free and no loan is currently taken against the same. An encumbrance certificate lets you know if any legal dispute related to the property is currently underway.
A homebuyer is suggested to check tax receipts of the previous three years while buying a resale property. This process ensures that all the taxes are paid till date and you need not pay for any outstanding tax amount. A homebuyer must ask the seller for tax receipts as it proves clear property title(s).
The previous owner must have availed a home loan to own a property. Hence, ask the seller to produce a home loan clearance document as it clears that the property is not mortgage against a parallel home loan.
This is the most important document to get signed while buying a resale property. A homebuyer is required to sign on the sale deed in the office of registrar as this process transfer property title from previous to a new owner.
Keep all these key things in mind while buying a resale property as it has first and second party involvement. So, instead of fetching details of the previous owner, a homebuyer must ask for first or the second owner of the property.