From financial planning to legal formalities and beyond, home buying can be an exhausting experience, especially for first-timers.
So, we’ve put together a check list of all the steps involved in buying a new house, so that your home buying experience need not be intimidating.
In case, you find it hard to manage all this, you could hire an agent to do it for you. They’re licensed professionals who can help you with everything including property selection, payment plans, legal formalities and even possession and transfer of documents.
Secure a good CIBIL score. Banks look for a good credit score. It can get you loans faster and at low interest rates.
A pre-approved loan can increase property owners’ confidence several fold. A pre-approved loan is one in which banks and financial institution perform a thorough check on the buyer’s credit report and virtually confirm a pre-approved loan along with the loan amount. However, if the buyer fails to make a purchase within a stipulated time, the pre-approved loan gets cancelled.
RERA has made home buyers’ life easier by providing great transparency. Now, buyers can get all property related information on a public domain, as all properties are registered under RERA. The Act also secures buyers from project completion delays by duly compensating them. All buyer grievances will be settled in 60 days. For example, in case of structural defects and it holds the builder responsible and gets them to fix it in 30 days without any extra charge. What’s more? The buyer even gets a full refund in case he decides to cancel a booking within 45 days.
As an informed buyer, it’s important to verify all legal documents required to make the purchase. Whether you are buying a primary or secondary property, check for the Title of the property. Check if the seller has constructed the property according to the sanction plan or if he has made any illegal extensions. Also check for Clearance, Safety, Commencement and Occupancy, Encumbrance certificates before buying any property. Once you’ve double-checked all documents, you can book your property by paying a sum of money that you and the seller/developer agree upon. After this, you will receive an Allotment letter. This letter will contain your flat number, payment details, area etc. In case all the legal documents are all too hard to comprehend, get a legal expert to help you out with the process.
This is the final step that closes the deal. Both the buyer and the seller should sign the Sale Agreement. Post this, a Sale Deed is signed by both the buyer and the seller. This is usually signed only when both parties agree to the clauses mentioned in the Sale Deed. After this step, you need to register the sale Deed in your name at your local municipality. Here, you will have to pay Stamp Duty, a tax that the Government levies on legal transfer of documents. This is when the property is legally transferred to you. Make sure you check the authenticity of all documents.
Maintenance and Housing Society
According to the Maintenance Agreement signed by buyer and developer, the developer is supposed to take care of maintenance services, for which the buyer pays accordingly. The developer then forms a Housing Society. After which, all maintenance services become their responsibility. The builder is no longer responsible for it. The Resident Welfare Association can form new rules and regulations for maintenance purpose, thereafter. This includes all amenities and common areas, such as parks, lifts, lobbies etc.