A "low interest" loan shouldn't mean you have very little interest in paying it back!
Purchasing a resale flat is a profitable purchase from the perspective of a buyer. What can be a better deal than getting ownership of a flat at a price lower than the market rate? Moreover, when you buy a flat in resale you save the money that you spend in paying house rent. Instead you can use the amount to pay the EMIs of your home loan opted for buying the resale flat. You can also take possession of the flat immediately after the purchase without waiting for months or years.
However, since a resale flat has changed multiple hands in the past, the process of its purchase involves several complex legal procedures and technical implications. Hence, before taking the final decision of purchasing a resale flat in Bangalore or in any other city in India, you should check and verify all the property papers and legal documents involved in the purchase in order to ensure that the flat has all the required government approvals and the seller has the right to sell it.
You need to have the entire chain of documents and agreements related to the property. You should also acquire and verify all other agreements and papers pertaining to the buying and selling of the flat till date. Here is the list of the documents that you need to check before purchasing a resale flat:
All these documents form a crucial part of the chain of documents that you need at the time of buying a resale flat. You are also required to submit these to the bank while applying for a resale home loan. Hence, if any of these documents are missing or the seller is unable to provide them it is suggested not to buy the flat as it can land you in trouble in the future during property sale or while applying for electricity, water or other services from the respective authorities.
It is not compulsory to get your name mutated while purchasing a residential resale flat. Since mutation is not the proof of ownership you can buy the flat without it. However, the mutation is important to get the property recorded in your name in the land revenue department. It is also required during the transfer of ownership from one individual to another during the sale/transfer of the property. Hence, you must get your name mutated in the revenue record within 6 months of the purchase.
Yes, you can apply for a home loan to buy a resale flat. Several top banks in India offer low-interest rate home loans for buying resale properties. You can also get your home-loan pre-approved from the bank where you already have an account. This will reduce your hassle and your loan will get sanctioned within a few hours of placing the request.
Banks ask for several legal documents for approving a home loan for buying a resale flat. Though the required documents may vary from one bank to another, here are the most important documents that you need to submit while applying for a home loan to purchase a resale flat:
Yes, it is very important to check all the latest tax paid receipts while you are purchasing a resale property. This will enable you to know whether the property has any outstanding dues or not. If there are any outstanding dues attached to the property you should at first, ask the seller to settle the dues before selling the property. You should also ensure that the seller doesn't have any other dues owed to the building or society.
The Sale Deed is the most important document that needs to be submitted. Other than this, you will also have to submit a letter from the society which contains details such as the year of construction of the building, the number of floors and elevators in the building, the built-up area of the apartment, etc.
You can verify whether the project approvals are genuine or not from the sanctioning authority's office or the corporation office. The ownership documents can be verified from the office of the Sub Registrar from where their registration has been done. In order to verify the Share Certificate, talk to the concerned society who has issued them.
In order to duly register a resale property in your name, you need to get a new Sale Deed, your PAN card, and photographs.
In case you are planning to buy a mortgaged flat at first ask the seller to obtain a release certificate from the bank stating that it is ready to provide the property documents to the buyer once the full payment of the loan is done. In this case, the seller must give an undertaking to the bank that he/she has agreed to give property documents to the buyer after closing the loan. Upon receiving the document, you can transfer the purchase money to the bank account of the seller either in cash or by means of a home loan. The bank will immediately release the original property documents together with a Non-Dues Certificate or NOC.
Before you purchase a resale flat it is very important to check whether the seller is the true owner of the property or not. In order to confirm the ownership of the seller, you should ask for a clear ownership history in case of properties that have been sold and purchased multiple times. The authenticity of the documents can be established by the administrative officer who has registered the property.
You need to get a no-objection certificate (NOC) from the society in order to confirm that the seller doesn’t owe any dues with the society.
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