Buying a resale property differs from the purchase of a newly designed one, both in terms of legality as well as the purchase process. The properties that are listed on resale are often higher than the original cost taking into account factors such as new amenities, pricing trends nearby, ease of commuting into the city, shopping centres, schools and hospitals, overall civil amenities in the area, Etc.
However, there are several advantages of buying a resale property, such as …
- Immediate possession of the property
- Escape the rental and EMIs at the same time
- See the desired specifications in full
- No building delays
- Time for planning your move-in
- Tax sites on residential building loan from the beginning
Despite the advantages at a higher price level, it is essential to know what to expect and what you will get in a resale apartment deal.
1. Talk to the Property Lawyer
There’s definitely a friend or acquaintance who has invested in a resale apartment in the past and is obviously satisfied with the purchase. Ask them how they have gone over the purchase. Also, try to understand the general legal process. Apartment specific features may not be similar to your wish, but certain basics always match.
2. Check the property ownership
Although you feel that it is easy to hire a lawyer or broker, it is better to be well versed in several areas for your own understanding. Check the title of the property, since its clearance is vital to avoid any kind of fraudulent selling.
3. Legal Documents
Verify that all documents are available with the purchase. Some of them are projected commencement certificate, completion, occupation and sales deed. Also, check the authenticity of the same with a lawyer or an agent of your choice.
4. Clearance of loans taken
Check if the property is completely free of past credit from the builder. Check with the bank personnel to carry out this verification, as they have the necessary network to do so.
5. Eligibility for a new loan
Given the fact that you are financing your purchase through credit, and this would be a resale property, cross check with your bank regarding the amount that you are eligible to receive as a loan. Make sure you have all the necessary documents to process your loan applications. Sometimes it is better to finance the property through a loan partially, even if you can afford the whole payment. Outsource the due diligence to the bank authorities and ensure yourself about the security of the investment.
6. Evaluation of the property
It is important to evaluate the wanted property for its market value. This is first necessary to ensure that the finances are properly planned. Furthermore, check whether the property prices are predicted to fall, which would deter the banks from granting you a loan amount for which you are entitled.
7. Down payment amount
Make prerequisite for the payment of an initial lump sum amount as a deposit for the purchase. The banks usually give you almost 80% of the total price on the property as a loan.
8. Age of the property
The ratio of the loan amount received and the amount of the deposit varies depending on the relative age of the home. Older properties tend to be prized away from your benefit because banks try to protect their interest. So, the advance payment for an older property would be a greater amount in terms of the loan you can avail.
9. Maintenance fees required by the society
This is a monthly recurring charge after you have occupied the purchased apartment. Make sure your budget can be with the EMI that you are scheduled to pay each month to the bank for some years.
10. Reason for sale
This should have appeared much above on the list, though you can find the reason for the sale only after building a report with the owner. Try to figure out the cause behind the sale. Although it is not always essential that you receive authentic information about the resale property, do ask to understand the intentions.