Buying a home is usually your life's biggest investment. The joy of moving into a dream piece of real estate often overshadows paperwork and due diligence that accompanies it. However, bypassing these checks may cost you heavily in the long run. Here are some fundamentals to remember before settling for a booking amount.
Verify the legal title
Establish whether the seller actually owns what they are attempting to sell. Insist on the title deed, encumbrance certificate, and documents of prior possession. If purchasing from a builder, ensure if the land is free of litigation and if development authority approvals are available. It's a good idea to hire a lawyer specialising in properties to scrutinise documents, as it may prevent litigation for years to come.
Verify approvals and permits
In the event of projects under construction, also check if the builder has all clearances required — building plan sanction, commencement certificate, and occupancy certificate (upon possession). Without it, your flat becomes "unauthorised" and may cause problems during resale or even connection of utilities at a future date.
Read the premises carefully
Don't depend on brochures and promises alone; inspect the premises several times. Check for quality of construction, material, and whether the flat is similar to floor plan. If it's a resale unit, see if there are any seepage, cracks, or outstanding repairs. Independent home inspectors are also brought in by many buyers to identify defects not easily seen to non-experts.
Know your EMI expenses after
Remember, that the EMI will not be your entire cost. You also need to add the cost of stamp duty, registration charges, GST (in some cases), parking fees, maintenance, and society charges. They, together, constitute 10-12% of the cost of the property. Keeping all these things in mind and planning for them in advance will not bring you any surprises at the last minute.
Get a view of neighbourhood and connectivity
Your dream home should benefit your everyday life. Check things that you will use every day – like road access, transport, water, and future infrastructure projects for your area. A property that is far from the city centre or your place of work may be cheaper but your travel cost and lost hours earned may turn out to be more than what you've saved.
Align it alongside your budget and credit rating
Your downpayment should be made after evaluating how much loan you are capable of servicing. Your credit record, income, and current debt are some of the factors that lenders evaluate. Having a clean credit record helps loan approval run smoothly and potentially fetches a better interest rate.
FAQs
1. Should I buy a flat through a builder or resale market?
They both have their advantages and disadvantages. Builder properties come equipped with modern amenities but are burdened by construction risk, whereas resale homes are mostly available for occupancy immediately but are subject to vigilant verification of ownership and condition.
2. How important is RERA registration?
It is essential. RERA (Real Estate Regulatory Authority) registered projects are mandated to disclose significant information and follow strict timelines. It offers buyers some protection against delay or litigation.
3. Can I purchase a home if litigation is pending?
It's best to avoid doing so. Even if it's a good purchase, a litigious piece of land can mean litigation woes for years to come. Always demand a clear title.
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