Buying resale property has advantages like lower price, the option to move in immediately, saving on house rent, not being misled by marketing extravaganzas, no hidden features or costs in play, etc. However, since a resale property has shifted multiple hands, it is necessary to verify all the property papers and legal documents involved in the purchase. This is to make sure that the flat has all the necessary government approvals and the seller has the right to sell it.
Important Documents To Check Before You Buy Resale Property
- Title Report - You can obtain the title report by going to the registrar’s office and conducting a title search. A title report is a written document reflecting the legal ownership status of the flat and other details such as the owner’s name, joint encumbrances along with information about the property tax, expense rate, loans, and securities related to the flat.
- Approval certificate for the building plan - The building must be built according to the building plan designed by the local municipal authorities. By looking at the plan, you will know the blueprint of the flat, layout, utilities, and other equipment. These will help you figure out if the flat has been constructed unlawfully. If any illegal construction has taken place, the flat may be demolished or may be declared not fit for residing in the long run.
- Encumbrance Certificate - The Encumbrance certificate will reflect any legal issues related to the apartment. It will help you to verify whether the title is clear, the property has no dues, whether it is partially or fully sold to someone else, and all the transactions related to the flat. It contains the names of all the previous owners of the flat.
- NOC from Bank - In order to ensure that there are no dues on the property, ask the seller to get an NOC certificate from the concerned bank. Once you understand that there is no debt on the flat, you can buy it without any worry.
- No objection certificate - No Objection Certificates or NOCs are issued by various administrative authorities including the bank, residential society, power corporation, gas and water boards etc. The NOC is a proof that states that the issuing authority approves the title transfer of the flat.
- Utility Bills - Check the utility bills such as electricity bills, gas bills, and water bills. It is an important part of property verification. Verifying them will let you know if all the bills have been paid or if there are any dues. Make sure that the seller has put the bills in the name of the owner.
- Title Deed - The title deed is a document that will confirm the transfer of ownership from the seller to the buyer. It will contain the owner’s name, details of the housing loan, if any, and other relevant information pertaining to the property. Once you have brought the flat, make sure that the title deed is transferred to your name and you keep it carefully with you as it proves your ownership clearly.
- Completion or Occupancy Certificate - On the completion of a project and after it is declared suitable for occupancy, an occupancy certificate is issued by a local government agency. The completion certificate is issued by the municipal authorities on completing a project. It is necessary to collect both documents in the previous owner’s name in order to verify that the flat is constructed.
You have to verify both the documents which are written in the previous owner’s name in order to authenticate that the flat has been built as per the approved plans and other legal guidelines and is fit enough to be occupied. You have to give these at the time of legal verification.
- No Dues Certificate from Society - When you are buying a flat in a Co-operative residential society, it is necessary to get a no dues certificate from the society. This document authenticates that the seller is not liable to pay any dues and is following the rules and regulations of the society. You have to get letters from the society corroborating the year of construction of the building, the built-up-area, and the number of floors and lifts. The NOC should also state that the society has no inhibitions in transferring the share certificate to the buyer.
- Sale Deed - The sale of deed is the chief proof of ownership of the flat for selling the property in future. After the flat is bought, it must be registered with the Sub-Registrar’s office. The most crucial document you need to acquire is the one following the seller's transfer of the flat's title into your name.
- Possession Certificate - A possession certificate is given when buying a privately built resale flat. After the buyer has bought the property, this document is given to them. The builder gives it to the first owner of the flat.Therefore, collecting the possession certificate is important when buying a resale flat.
- Share certificate - When you purchase an apartment in a new cooperative group housing society, a new share certificate is issued, which is signed mutually by you and the seller. It is through this certificate that you have to get the apartment transferred in your name. This share certificate will contain the names of all the previous owners, and will declare you rightfully as the owner of the property.
- Latest Tax Receipts - You must check the most recent receipts for taxation before purchasing a resale apartment. This will show that the previous owners have been paying the tax properly on time, and also the information about the amount outstanding
The documents required to buy a resale property have to be kept in place. This is to ensure that the purchase of the resale property and living there is hassle-free.
FAQs on Documents to Check Before Buying Resale Property
1. Is it essential to get my name mutated while purchasing a resale apartment?
It is not essential to get your name mutated while purchasing a resale apartment. This is because mutation is not the proof of ownership. But, mutation is required to get the property recorded in your name in the land revenue department and during the transfer of ownership from one individual to another during the sale/transfer of the property. So, you must get your name mutated in the revenue record within 6 months of buying the property.
2. Can we get a home loan on a resale house?
Yes, you can get a home loan on a resale house. For that, you must be at least 18 years and not more than 60 years of age. Depending on a few factors such as excellent credit profile, mortgage insurance, and maintenance of the property, lenders may decide to extend the tenure of the loan.