How to Buy Property
Buying a property demands a lot of effort and time. However, following this step-by-step guide can make this process smoother for you. This guide could be your checklist during the process, making you confident about your decision.
Find the right agent
An important partner in your home-buying process, a property agent is the first person you should hire. Look for an agent who is well-versed and has an experience in the localities of your choice. Pick an agent with good business acumen about the current real estate market. Their knowledge about the localities and surroundings, and home-buying process as a whole coupled with negotiation skills can prove to be boon for you as a homebuyer.
Begin to identify properties
An agent, once hired, will be your partner from the very beginning of the process. Along with your agent, begin to find the potential property options in the localities of your choice. Make sure the properties you choose fits the list of your key parameters of home buying. Figure out your expectations from your home such as amenities, features and specifications. Start touring these properties and strike out the ones that are not fulfilling all the key parameters you want in your home. Make a list of all the things you saw in each property, take pictures and make videos. Sit down and put all of these together to shortlist.
Know how much can you afford
The price of the property is a crucial parameter. Know that apart from the cost of the property, there are other overhead charges, too. This includes stamp duty, legal fees, brokerage fees, property tax, etc. Define how you plan to invest in a property. Now, pick the shortlisted properties and begin to evaluate their worth in context of the selling price of these properties. Once you find a property that fits your budget, begin to look for a bank that offers attractive rate of interest on home loan.
Perform legal diligence
Whether you are buying a primary or a secondary property, make sure that the developer or the seller has the title of the property (the right to sell). In case the property is in a housing society, know all about their occupancy certificate and safety certificates. The home-buying process would also require a legal expert to read into the agreement and also, handle other legal formalities.
Consider these before you close the deal
*Check the sanction plan of the project and confirm that the development is approved and entirely legal.
*Make sure the building bye-laws are applicable in the specific area and there are no violations on the part of the seller.
*Don't forget to take no-objection certificates (NOCs) from the water, electricity and land ceiling authorities.
*Make sure there are no unwanted encumbrances in the property.
*Know about the payment procedure. Payment patterns vary from developer to developer and in case of a resale property, the homebuyer has to pay a certain percentage of the property as downpayment. On the other hand, for an under-construction property, there are three types of payment plans you could pick from: time-linked where a buyer has to pay at certain intervals irrespective of the progress of construction; in downpayment, the homebuyer needs to pay a certain percentage upfront and the remaining through installments; and flexi plan which is a mix of both construction-linked plan and down payment plan where the buyer pays 10 per cent at the time of booking and the remaining in a fixed time span.
*After you pick your payment plan, fix your home loan. Get all the property, income and tax-related documents at a place and apply for the home loan as early as you can.
*Once the booking amount is paid, make sure you receive an allotment letter which has all the relevant details such as flat number, size, floor and other extra charges.
*A sale agreement must be signed between the developer/seller and buyer. It is a proof that makes the buyer the legal owner of the property. Recheck the deed so as to be sure about all the specifications of your home.
*The last and the final step after all the relevant formalities you attain the possession of your home. Now it's your responsibility to register the sale deed in the local municipality and the get the property registered in your name.
