Power Of Attorney : Written legal authority given by one person to another person to act on the principal's behalf can remain in force only so long after principle is aside.
Will : legal declaration of how a person wish his/her possession to be disposed after their death
It is part of the whole amount of an expensive asset paid by the buyer of the asset upfront. The remaining part of the amount will be paid by getting a loan from bank or other financial institutions.
It is a kind of Tax placed on legal document while transferring a property from one person to another.
It is Total Assets of a person at the given point of time. That is buildings, investments and other assets s/he is having. Benefits will be enjoyed by his heirs after his death through his will.
Why to buy a resale property
Who does not wish to live in a house of their own? Buying a new flat will take a long time, so some of us may wish to settle for buying a resale property.
How to Buy a Resale Flat/ Property
1. Consult Experts
It may be ideal to engage a good real estate agent to locate a resale property/flat. He would be in a position to locate sellers as well as guide you regarding the price of such properties in different localities. They would also be in a position to tell you about the seller of the property. Most real estate agents charge a fee and also help with registration, payment of stamp duty and other paperwork procedures for purchase for buying a resale flat/property. In addition, taking the help of a good lawyer would also help to make sure that things are clear legally also.
2. Check Title of a Resale Flat/ Property
Engaging with experts like real estate agents and lawyers will help you, but it is always better to be well-informed yourself when entering into deals and procedures for buying resale flat/property. The first step in buying a resale flat/property would be to establish the title of the seller; whether he is the real owner of the property/flat or has been given the power of attorney to transact the deal. All the documents with regard to the resale property/flat need to be clear. In addition, you need to make sure that all the original documents with regard to the resale property that were given by the builder or original developer are in order.
3. Check required documents for buying a Resale Flat/ Property
Buying resale property may seem great, but it could become a big problem if the documents regarding the original purchase and subsequent transfer of title are not properly stamped. Firstly, it could pose great problems especially if you want to apply for a loan for purchase of the resale property. Subsequently, it could prove to be unacceptable in case you wish to transact further on the property.
4. Check for Existing Loan
It is also necessary to make sure that the property documents are not lying mortgaged in the bank’s custody against a loan taken by the seller. The bank will consider a loan only once the loan taken by the seller is repaid and the documents released.
5. Check for Loan Eligibility for buying a Resale Flat/ Property
Buying a resale property would definitely provide you with a bigger space in case of older properties. However, it is best to note that some banks may not lend money on buildings older than 10 years. This may be due to the reason that they may not want to take the risk of the price of the property going down. Banks also make sure to ensure that the bank’s outstanding loan should always be lower than the value of the property in the market.
6. Check the Value of a Resale Flat/ Property
Next, it is imperative to note that the loan amount is highly dependent on the cost of the property. Technical experts would evaluate the property/flat. However, it would be useful to yourself avail the services of a property valuator at a small fee before approaching the banks. The bank’s property valuator may valuate the property at a much lower rate. They would also like to safeguard their interests against the fall in the price of the property in future.
7. Calculate the More Down Payment
Most banks wish to make sure that you be responsible for the maintenance and good upkeep of buying the resale property/flat. So banks would expect you as the purchaser of the resale property to pay a certain percentage of the price as down payment. You may have to pay about 20% of the price as down payment; property of 50 lakhs requires 10 lakh as down payment.
8. Know the Age of a Resale Flat/ Property
This down payment could be more in case of older properties. In addition, banks usually lend only on properties that are unto 50 years old. The tenure of the loan also decreases with the age of the property.
9. Know what to do in case of a Flat Society
The bank may grant the loan and you may make the down payment, but there could be another problem. It arises out of the need for some Flat societies that require the payment of a heavy price for change of ownership. It is best to consider this cost also when coming to a conclusion while purchasing resale property in cooperative and other societies.
Buying resale property/flat would give you a chance to settle in your own house fast and save you of high rents paid and the need to frequently shift your place of living. Taking a loan from the bank could give you tax deductions on the interest paid soon. You would not have to wait till the possession as in the case of new flats. It is always prudent to be well informed about the various procedures for buying resale flat/ property.
I hope you got some good insights about buying a resale property. Please share more insights on this topic in comments section.