Resale Property - How to Buy Resale Flats
The demand for housing, especially in urban areas, has led to a thriving resale real estate market. Opting for a resale flat can help buyers find competitive pricing, often in already-developed areas. However, a resale flat or property requires extensive due diligence - checking the flat's legal records, ownership history, layout approvals, and ensuring a clear title. Here are the most important things one should consider before buying a resale property.
What is Resale Property?
A resale property refers to a previously owned home, apartment, or flat of land being sold again by the existing owner, usually after a period of occupancy. It is different from a new property that is being sold for the first time by a builder or developer. When the current owner decides to sell their lived-in home, land, flat or other real estate for various reasons, this second sale is known as a resale. Also, the property may be sold directly by the owner or real estate agents.
Documents to Verify Before Purchasing Resale Property
When purchasing a resale property, the key documentation will usually be completed by the existing owner. However, as the new buyer, one still needs to conduct due diligence by verifying the critical documents related to the property's ownership, legal status, and history. While one avoids having to handle registrations and approvals from scratch, checking the validity and accuracy of the following existing documents is a must:
The parent deed or root deed is the original, registered purchase document created when the property was first acquired. It establishes initial legal ownership with buyer/seller details, sale price, date, and witnesses. This founding deed remains permanently linked to the property as the basis for all subsequent sales and transfers, which are tracked through additional documents. But later records cannot replace or invalidate the parent deed, which provides genesis ownership proof. When buying resale property, verifying this key original document is critical for tracing complete title history and ensuring no gaps or red flags exist.
Title Deed and Sale Deed
The sale deed is created during the resale flat or property registration process when a property is sold and ownership is fully transferred to another person. Along with the sale, the property can also be transferred through inheritance or gifts, likewise, title deeds proving rights. When buying a resale property, the title deed or conveyance deed must be checked as legal proof of complete ownership rights over that asset. The title deed establishes the current legal rights, so verifying it is absolutely essential.
Another document required for resale flat purchase is an encumbrance certificate, which documents any existing loans, liens or legal dues on a property. Checking the EC when buying resale real estate is critical to ensure a clear title without financial liabilities. An encumbrance cert shows if the property is free of legal charges or has outstanding loans, preventing unanticipated dues. Since it indicates clean ownership, verifying this document is essential before the flat purchase to avoid inheriting financial burdens. The EC offers crucial protection by revealing risks upfront.
Letter of Allotment
The letter of allotment is important when purchasing a resale flat or property. It is issued by the developer/builder as a booking confirmation when the original buyer reserves the property. This allotment is passed on to the new buyer in a resale. It contains details like the project name, exact location and dimensions of the flat, proposed amenities, possession date and payment plan. This helps the resale buyer evaluate the property. Also, banks refer to the letter for loan approvals to fund the resale property purchase. It formally allocates the property to the new owner.
No-Objection Certificate (NOC)
The No-Objection Certificate, or NOC, plays a vital role when purchasing a resale flat. The NOC is a legal certificate issued by the concerned housing society, builder, or development authority stating that they have no objection to the sale and transfer of ownership of the said flat from the existing owner to the new buyer. Having an NOC in hand protects the buyer from the risk of authorities or third parties creating any legal hurdles or stopping the registry later in the transaction. It also ensures the seller provides full disclosure and that the flat's ownership rights are free of any complications.
Property Tax, Water Tax, and Electricity Bill
Property tax, water and electricity bill receipts in the seller's name prove ownership. When buying a resale property, check these are updated in records to the new buyer's name to avoid liabilities. Verify taxes and bills are settled, and title transfer is reflected in tax receipts. This confirms updated ownership in municipal systems and avoids financial dues.
Advantageous Factors to Consider Before Purchasing Resale Plots
Here is a quick go-through of no advantages factors to consider before buying resale flats of land to make day-to-day life convenient.
- Opting for a property in an accessible, well-connected location improves daily convenience and lifestyle.
- Properties near key destinations like work or schools cut commute time. For instance, our land in Redhills is well connected by road and rails minimising travelling time. This allows more time with family or other valued activities.
- Opting for property near essentials like grocery stores, healthcare, parks and recreation makes daily errands more convenient.
- Choosing land away from busy roads, crowded areas, and noise facilitates a peaceful lifestyle. For people who prefer quieter living, consider investing in land for sale in Thandalam.
- Living in a convenient location can foster community and social interactions through nearby access to community centres, parks, etc. Proximity aids engagement in social activities.
For many, owning a property represents both a financial investment and a personal achievement. Resale flats provide an attractive opportunity, as they can be customised to match individual preferences and needs. With a resale flat, you can design and build a property, be it your dream home or a rental investment, that aligns with your vision. Following this checklist helps ensure a smooth process for buying resale flats. Further, taking the time to evaluate resale flats against your must-haves minimises hassles down the road. With careful selection, you can find the ideal blank canvas to construct your perfect property.