Buying Resale Property? Precautions To Consider Before Signing On Dotted Lines

resale property
resale property

Priya and Amit are saving money for their dream property for a long time. But now they are almost desperate to move into their own house so as to nullify rental expense. However, ready-to-move-in properties available in the desired locations are out of their budget. And they do not want to put in their savings in under-construction property. What should Priya and Amit do?

Them and many such young home buyers tend to overlook one very important segment of residential real estate market while house hunting and that is the market of resale properties. Such properties not only rule out the uncertainties that come with an under-construction property but also help in saving rental expense as the buyer can immediately shift in them.

What Is Difference Between Ready-to-Move-In and Resale Property?

Ready-to-move-in homes are the ready for possession properties that the buyers buy directly from the developer. Resale properties are the ones bought by buyers or investors earlier and are now up for sale.

At the same time, resale property is usually cheaper than the ready-to-move-in homes offered by the developers as the builder usually increases the pricing with time but investors who had bought the property earlier are often to ready to sell it off at a much lesser price.

Benefits of Buying Resale Property

While looking for a house to buy, one should not ignore the resale properties as they come with their own set of benefits as compared to under-construction and ready-to-move-in homes:

  • Zero Wait:

You will not have to wait eagerly for the possession of the property. You will be able to move in once the required paperwork is done.

  •   Cheaper Price:

Chances are very high that you will be able to get the similar property in the same project at a much cheaper price if you are ready to go for resale properties. Several investors offer good and attractive deals to sell off the home while developers increase price with time.

Precautions to Be Taken While Buying Resale Property

It may sound lucrative, but resale property comes with its own set of drawbacks. However, they can be ruled out if following precautions are taken:

  • Double Check Docs:

Ensure that the documents being provided to you are not color photocopies. Seek advice only from authentic source such as your bank or may be hire a lawyer and get the property documents double checked.  

  •  Check Authenticity:

If you are buying a developer’s property which is for resale, but the possession hasn’t been given, then it’s easy to cross-check the authenticity by a simple visit to the developer’s office. In case of delivered units, you need to ensure that the seller is actually the true owner of the property 

  • No Encumbrance Certificate:

Make sure to get no encumbrance certificate to find the true title holder of the property and whether it is mortgaged to any financier or not. Get hold of all tax papers as well.

  •   Internet Search:

Make full use of internet to search for the true owner and any liability of a property.

“In case of delivered units, one needs to do the internet search as properties are now uploaded on the website of the authorities under whose purview it falls,” Zeebiz quoted Rakesh Yadav, CMD, Antriksh India Group, as saying. “So, an internet search would be enough to give the initial details that a home buyer can get on his or her own.”

  •  Pending Dues:

Check for any pending dues to the society, RWA or against the house which you might end up paying later.

  • Mortgaged Property:

In case the property is mortgaged, the owner needs to give an undertaking to the bank that he has agreed to give property documents to the buyer upon the home loan foreclosure.

  •   Absence of Clear Ownership:

Extra precaution needs to be taken in cases of old properties or those have changed hands many a times in the past. It is better to stay away from the property where the chain of documentation is broken or not clear.

  •  Old Property:

Going for very old resale property is not a very good idea. Not only getting a home loan on a property more than 20 years old might be a bit difficult, chances are high that such a property is never formally registered. Registering the property now will put onus of paying the stamp duty in arrears on you.

LEAVE A REPLY

Please enter your comment!
Please enter your name here