What are the steps in buying a resale apartment?

One of my friends bought a property recently and I am also looking to buy one for my parents. I asked her regarding the resale flat buying process. She explained it involves several processes and added you just need to get pre-approved for a house loan to get started. When I asked the reason behind it, she said it will assist you in figuring out how much you can afford to spend on a property. I have mentioned all the tips she shared with me below. 

What is the Resale Flat Purchase Process?

Avinash and Harshit have already explained the entire process exceptionally well. So, I am sharing only the important information my friend informed me of and you need to know:

• When buying a resale property, consult lawyers for guidance on pricing, seller information, and paperwork.

• Ensure the seller’s ownership title is clear and verify that all original property documents are in order.

• Check if any outstanding loans exist on the property, as these must be settled before a new loan can be processed. Verify your loan eligibility, as some banks hesitate to finance properties older than 10 years, and the loan amount often depends on the property’s valuation.

• Prepare for a down payment, typically around 20%, which may increase with older properties. Also, check if additional fees apply for ownership changes in societies.

Purchasing a resale property offers quicker possession, saving on rent, and enables tax benefits on loan interest. Staying informed on these steps ensures a smoother purchase experience. I hope you get an idea of the purchasing resale flat procedure.

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I recently purchased a resale property in Bangalore, so I can share the procedure to buy resale flat. I chose the resale flat because it is considered to be more financially feasible than purchasing a new apartment because of several factors, including the property's age, final cost, depreciation over time, required renovations, etc. that reduce the price.

What is the Procedure for Resale Flat Purchase?

I’d like to share the general guidelines or steps to buy resale flat;

• Meet your financial advisor; if you don't have one, ask your banker for advice. They will assist you in determining the home's value and in making financial plans.

• Make sure the property has undergone due diligence. Experts must review all of the documentation, the property's value, etc.

• If the house was purchased by the previous owner through the loan, you will require an individual to verify the loan records. You must go to the bank to ascertain the loan's tenure, the amount that has been paid off, and other details.

• At this point, you must speak with a bank or HFC (Housing Finance Company) to get help with a house loan.

• You must register the deed as soon as the Sales Deed and Sales Agreement are complete and all requirements have been met. 

• For the timely disbursement of the approved loan amount, you will also need to provide legal and technical details or clarifications at the time of registration.

• Following the sales deed's registration, you, as the buyer, will have to get to work on post-purchase paperwork like Katha transfers and renaming water, electricity, and other meters.

I decided to go with the Rs. 4999

. Lots of flexibility was provided by this plan.

I selected this plan because I was assured I would receive a property; if not, I would receive a full refund. This plan also offered me legal support as well as loan assistance. My due diligence on the property was aided by them. Professionals verified the title, examined all the documents, and assessed the property's value. 

So, this plan made the process of becoming a buyer easy and hassle-free.

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Hey Mehul,

Buying a resale property requires many things to be kept in mind along with understanding the process. I am going to help you understand everything I know about the same.

Follow the given steps for buying a resale property.

1. Property Verification:

   It is wise for the buyer to have a real estate attorney perform a property verification. This is done to make sure the property is in fact owned legally, to determine any tax obligations associated with it, and to make sure it complies with all applicable laws.

2. Sale Agreement:

   The property Sale Agreement is likely the most crucial document in the entire chain because even the sale deed is legally binding and is completed based on the parameters outlined in the sale agreement, making it even more crucial to have a professionally drafted and carefully reviewed sale agreement.

3. Home Loan Processing:

   The first stage in obtaining a home loan is to have the loan approved, for which the bank will need to review the buyer's credit history, property marketability, and proof of income.

4. TDS Obligation:

   If the property market value exceeds 50 Lacs, the buyer must subtract the statutory TDS of 1 per cent from the sale proceeds. Before the sale deed registration process can begin, the buyer is responsible for withholding the money and depositing it with the government.

5. Affidavits and registered POA from Buyer/Seller:

   In order to complete the sale or purchase of the real estate, specific affidavits or powers of attorney may need to be signed. The "Affidavit of Title" or "Seller's Affidavit" is one of these affidavits, signed by the seller, stating that they are the owners of the property and listing any known title problems, such as an active lease, liens or construction on the property that could give rise to a dispute, ownership boundary issues, unresolved ownership issues from a will, etc.

6. Registration of Sale Deed:

   A Sale Deed is a letter signed at the time the sale agreement is closed. The registration of the estate is the last stage in the procedure because registration signifies that the buyer is the property's legitimate owner, with all of the associated rights, obligations, and duties.

If you wish to know more about the things to keep in mind while buying a resale property, you can go through the following article on NoBroker to understand everything related to resale properties.

I hope this was helpful to you.