Buying a resale villa or flat – Checklist to follow
Buying a resale villa or flat makes sense; it is a wise decision, at many levels. The location of the property matters to most home buyers. For instance, you can choose from villas for sale in Palakkad, in prime locations. When buying a resale flat or villa, buyers can really choose and pick and select a home based on their preference, such as infrastructure – close to school, workplace or the metro station. The price of a resale flat or villa is generally negotiable. There is no fear of project delays, and such properties are usually located in established localities and are ready to move in.
On the flip side, an old resale property could require repairs and renovation, which could add to its cost. Since, no big promoters are involved, acquiring a home loan to purchase an old-property can be challenging. But the pros outweigh the cons.
Before buying a resale villa or flat, buyers must familiarise themselves with the legalities and paperwork. This article walks you through a basic checklist of documents that need to be verified, before making the transaction legal.
There is a long list of documents that are required to buy a resale property. These are legal documents and establish the veracity of the property.
The Sale Deed is a key legal document and a seller must have one executed in their name, for the property they propose to sell. The sale deed proves that the seller of the property is its rightful owner and authorised to sell it and that there is fraud occurring.
Once you go ahead with the purchase, you will be required to register the property at the office of the Property Registrar and a fresh Sale Deed will be executed in your name; thus transferring the ownership of the property from the seller to you.
A Sale Agreement will need to be executed between the seller and the buyer, before the execution of the Sale Deed. Before that confirm that the property has a clear title and that there are no encumbrance charges on it. Ensure that the seller has paid all statutory bills such as property tax, society maintenance charges, electricity bill, water bill etc.
Parent Document also known as the Mother Deed is a record of the ownership antecedents of the landed property, over the years, registered at the Property Registrar’s Office. For example, the land records of all Villas in Ottapalam, in a gated community, available at the Registrar’s Office, will be entered in the Parent Document. It establishes whom the land belonged to prior to being owned by the present owner when it was bought. It is a very important piece of document that establishes the legal status of the property.
The ownership of the property is listed in chronological order, clearly mentioning how the property changed hands – via inheritance, partition, gift or sale.
Encumbrance Certificate (EC)
The EC can be obtained from the office of the Registrar of Properties. It is a legal document that denotes any liabilities that might be created on the said property. It also establishes the ownership of the property.
For instance, if the property includes villas in Angamaly, the EC will have all registered transactions for them, for the specified period. The document will mention if the properties are mortgaged.
Property Tax Receipt
Properties attract a property tax, which needs to be paid to the municipality/panchayat, on a yearly basis. Ask for the latest tax receipt, to ensure that there is no default in the payment of the property tax.
Important steps before buying a resale villa or flat
As a final step, buyers must check the property and the neighbourhood thoroughly.
- Is it a safe neighbourhood?
- Are the approach roads accessible and safe to drive at night?
- Does the property receive corporation water or would it need tankers, sumps, groundwater etc?
- Is the property built on a low-lying area, or in a lake bed?
- How efficient is the drainage – are stormwater drains in place?
- Ensure that there is no garbage dump close to the property
- How is the construction – check for cracks, seepage and other faults