Checklist for buying a house
While looking for the perfect nest with all the amenities is extremely important, there are a number of factors that you need to keep in mind before making this decision of a lifetime. Here is a handy checklist:
Clear Title– The most important thing is to ascertain that the title is clear. For this it is imperative to see the title deed. It is also advisable to see the trail of how the transactions have occurred in the past from the first seller to the last. The documents to look out for include:
- Sale Deed
- Deed of Conveyance
- Necessary Power of Attorneys
If you are purchasing property from a developer, it is also prudent to look for:
- Approved Project Plan
- Intimation of Disapproval
- Completion Certificate
Your job may become slightly easier if you are purchasing a ready to move flat in a society, which already has a co-operative society in existence. The documents to watch out for here, include:
- Seller’s Share Certificate
- Letter from the society stating the flat is in the owner’s name.
- Free Hold or Leased
It is useful to check whether the land on which the property is built is free hold or leased. Ideally a free hold property is preferred over a leased one.
Encumbrance Certificate : Asking for this ensures that you have verified that the property is free from any mortgage and has no pending dues.
Payment of Taxes : It is best to ask for receipts of taxes paid, as also details of payment of electricity & water bills.
Under Construction Property : For an under construction property, the essential documents to ask include:
- Sanction Plan
- Certificate of Commencement
In addition, it is important to read the fine print for clauses on delay as delayed construction has become more a norm than an exception in the recent past.
For Under construction properties, it is also important to do a check on the builder credentials especially his track record in terms of:
- Delivery Time
- Transparency in dealing
- Any hidden costs
- Quality of projects
Irrespective of the kind of house you are buying, remember to budget for a number of aspects such as:
- Registration Charges
- Stamp Duty
- Society Transfer Charges
- Brokerage Charges
Budgeting for the same will ensure you never exceed your budget and come under any financial stress.
Besides the above mentioned legal aspects of course, buying a house means doing due research of a number of other aspects including but not limited to:
- Location– This includes a number of factors including proximity to a whole lot of facilities.
- Resale & rental potential– The location among other things, also determines the rental as well as the resale potential of the property. It is best to do a survey of the resale as well as rental values of other properties in the location
- Amenities– It is best to do a thorough check of the amenities available as well as any hidden costs for the same.
Here’s to happy house hunting & a peaceful stay!