January 28, 2016

How to Buy a Flat and Not Lose Sleep

Buying a flat is one of the biggest investment you’ll ever make. That’s why it’s important as a homebuyer to run several checks on the property you’re considering to ensure that it’s a worthwhile investment. Owning a home is a dream and it comes with many rewards, but the entire process can quickly become stressful if you don’t do your part to ensure that you’re making a sound investment. 

Some of the biggest pitfalls that buyers face include:

How to Buy a Flat and Not Lose Sleep

·         Unclear property titles. With an ownership registry or land acquisition policy in place, it can be difficult to determine who actually owns the home.
·         Multiple agencies need to approve the project before it can be completed.
Buyers need to be diligent to ensure that the property has no encumbrances. Here are some tips to help you get through the process without losing sleep at night.

Get the Agreement in Writing

It is crucial that you enter into a written agreement with the developer. This agreement should clearly state the terms and conditions, such as time of delivery and the payment plan, as well as the specifications of the flat.
If you’re purchasing an already-existing flat, it’s important to check the occupation certificate, property tax receipts, and inspect water, electrical and fire safety mechanisms.
Remember, India does not currently have a real estate regulator or guidelines for this sector. The occupancy certificate is especially important because it states that the flat is complete and suitable for living.
Purchasing freehold property will also help you avoid the possibility of buying from someone who doesn’t truly own the property.

Secure a Bank Loan

Securing a bank loan is the best course of action to take when buying a flat. When the bank extends a loan, they accept the flat as collateral. Therefore, they carry out all of the necessary checks, including the builder’s credentials in the case of a new construction. This can give you peace of mind in knowing that your flat will continue to hold its value in the future.
Even if you are able to purchase the flat outright, you may consider taking out a small loan to gain this extra layer of protection.

Check the Developer’s Background

When buying property, you can never be too cautious. If it is a new construction, be sure to check the developer’s background to assess the quality and timeliness of the work. A reputable developer will have a clear record that you can use as a reference point. Consider the time it took to complete the project and the number of projects the developer has taken on. Be cautious of developers who have been involved in legal squabbles.

Ensure That You Have the Right Documentation

If you’re purchasing a flat from the urban development authorities, the chances of the property having an unclear title or improper documentation are far less. If you’re purchasing from a private developer, however, you may consider seeking legal assistance to ensure that all of the necessary documents are correct.
Buying a flat doesn’t have to be a stressful process. It’s up to you, the buyer, to be diligent and perform thorough checks to ensure that the property can be purchased legally and will be a good fit for you and your family.