For a vast majority of people, buying their own home is a dream come true!
Individuals invest a lot of their money, time, energy when deciding to invest in the property market; but naturally, they look forward to making an ROI (Return on investment.)
Real-estate investment is generally considered a wise investment as it is something that will go up in value, with the gain being proportional to the amount invested.
How To Inspect Mumbai Flats Without Buying?
Before you purchase a home, you must carry out an initial inspection. You can either sign up an accredited inspector or do it yourself. Stroll through its surroundings and inspect the outer surface of the house. However, an online search for flats in Mumbai may lead to the right property in Mumbai you are looking for with a virtual tour.
Before buying a flat: Crucial points to look out for!
Locality, possession date, cost, and bonafide documents are a few of the most important factors to be considered when directing all your attention to a new property or flat purchase.
Additionally, an essential component of property purchase is loans and its subsequent monthly installments.
It is crucial to examine the following parameters before purchasing a new property.
All-important authorizations and licenses.
Authorization is the process of permitting individuals to access legal documents, procedures, costs, etc.
Buying a property is of great value; therefore, authorizations are extremely important because many other things depend on it.
Once you have decided on a property that you want to have, focus on the builder’s vital records like:
- Commencement Certificates
- Environmental clearances
- Approved building plans
- Land titles,
Here is a list of documents property buyers should check:
- Title Deeds
- Approvals and NOC (No-objection certificate)
- Builder-Buyer Agreements
- Release Certificate
- Encumbrance Certificate
- Official land records
- Explicit authorizations by local bodies
- Verifications of builder’s documents
- Property tax receipts
1 – Title Deed
The most critical document for property purchase!
Ownership of the Title Deed is crucial to a successful property purchase.
Before purchasing a house, ensure that the details in the title deed are true and accurate.
The Title deed gives all accurate and complete information about the rights, ownership, and obligations towards the property.
Also, be aware that the property cannot be sold without a legitimate title deed.
2 – NOC (No-objection certificates)
NOC’s are generally official documents that give buyers, builders, sellers, etc. special permission not to do or pay something besides authenticating specific details of an item, event or transaction.
Remember, however, that a plain NOC (No-objection certificate) from the panchayat or the local body cannot be considered as approved by the authorities.
3 – Builder-Buyer Agreements
After paying the token money, booking of a flat gives the buyer formal permission to own or use the property, etc. in the future; in exchange, the buyer receives the allotment letter and enters into what’s known as a tripartite agreement.
If the buyer has any doubts about the purchase, then he should clarify at this stage.
4 – Release Certificate
A crucial precondition for getting the property purchase right!
If you are paying for a property in resale, then understand that it could have been undertaken against a bank loan.
In this situation, obtain a Release Certificate from the bank, which will ensure that the loan on the land has been repaid.
5 – Checking Encumbrance Certificate is vital!
Encumbrance Certificate is an extremely valuable official document that shows that the bought property is free from all legal dues.
6 – Verify land records!
While purchasing property, checking the land (on which your house is constructed) is crucial.
Confirm that the land is legally authorized besides being free from all dues and is registered.
7 – Study the approvals of local bodies.
Ensure that the complete blueprint of the flat has been officially accepted by the development corporation or the local governing body of the city.
It is also advisable to seek local opinions with respect to the property or the flat.
8 – Authenticate the credentials of the builder.
Have you ascertained that your builder received a sanction for his construction project? The land that is being discussed can be under litigation. Investigate further as you must check its documents, records, etc. to prove that the area is free from lawsuits, etc.
9 – Property tax receipts
Although various property documents are essential, they are vital during a property purchase.
If you are purchasing a property in resale, request the seller for earlier property tax receipts with previous bills. In this manner, you can be confident that there are no unresolved bills.
10 – Calculate the carpet area of the flat.
As a rule, a property’s super built-up area consists of its total area, that takes account of shafts, elevator area, staircases, widths of walls, etc.
However, the carpet area is a restricted area inside the flat’s walls; this area could well be 30% lesser than the super built-up area (the space utilized to assess the price.)
Mostly brokers declare the principal cost and no additional costs like:
- Internal/external development fees
- Preferential location charges
- Parking or club or statutory charges
- Service taxes
- Stamp duties
- Home loan processing fees
- Registration charges, etc.
Hence, request for the final amount of the property.
Property Prices: The most critical factor
Examine the differences between estimates of similar constructions nearby; portal listings, brokers of the area or newspaper listings, are a few ways to assess similar properties.
Mysterious and extra charges!
What is a priority here is that all the clauses of the documents are studied and penalty clauses cottoned on.
It is also important to realize that the builder will pay the buyer a monthly penalty in case the flat is not delivered a promised, keeping aside a grace period.
This article shows how verification of builder’s documents, licenses, builder agreements, property’s carpet area, property tax receipts, Release certificate, NOC’s, property prices and extra charges, etc. are crucial aspects of property purchase.