Buying a resale property has always proven to be advantageous from choosing a strategic location to acquiring finer properties at better prices. Although a resale apartment may be old, it is a good investment option owing to the low availability or supply of new properties in the area. Therefore, if the owner chooses to redevelop the property, it is likely to fetch him greater appreciation.
Another advantage of buying a resale apartment will be if the buyer makes a one shot payment from his disposable income rather getting into the intricacies of seeking a home loan. However, one should be aware that seeking a home loan for a resale property would mean meeting additional legal and procedural requirements. It is mandatory that one should be aware of the legalities and paperwork before investing in a resale apartment. One can even consider hiring a good realtor to get information on the apt resale property, the details of the seller, and running around for paperwork etc.
What are the important documents required to buy a resale apartment or independent house?
1. Sale Deed: One of the core legal documents that evidences the proof of property sale and transfer of ownership between the seller and the buyer is the Sale Deed. It is important that a Sale Deed should be registered and before it is executed, one should execute a ‘sale agreement’ and should ensure that all the conditions between the seller and the buyer are complied with. Also, before the sale agreement is executed, the buyer should check for a clear title and whether the property has any encumbrance charges on it. However, it is critical that a seller makes all the statutory payments such as water bill, electricity bill, property tax, cess, maintenance charges etc., before executing the Sale Deed.
2. Mother Deed: Also known as the parent document, Mother Deed is the second most important document that traces and evidences the origin/antecedent ownership of the property from the beginning, in case the property has changed various hands. Mother Deed also helps in smooth selling of the property by establishing the current ownership. The document consists of the change of ownership of the property via sale, gift, partition or inheritance. All such changes will be traced from a transfer document through a uniform sequence in a chronological order without breaking the sequence flow. If there is a broken sequence, one should refer to the records from the registering offices, revenue records or the recitals (preamble) in other documents and should update the sequence until the present owner. However, if the original Mother Deed is missing, one should obtain the certified copies from the registering authorities.
3. Encumbrance Certificate (EC): An Encumbrance Certificate denotes the charges in the ownership or liabilities created on a property that is held against a home loan as security. The document consists of all the registered transactions pertaining to the property for a particular period/sought period. This certificate that is sought for a particular period evidences the property purchase/sale, the presence of any transaction or mortgage for that particular period. To obtain an EC, one should submit a copy of the Sale Deed, fill in the Form 22, affix a non-judicial stamp and submit it to the jurisdictional sub-registrar’s office. Crucial details such as complete residential address, property location, property survey number, the sought period, property description, its measurements and boundaries should be mentioned in the Form. Therefore by paying a nominal fee amount on a yearly basis one can obtain an EC between 3-7 working days or more depending on the period sought.
4. Latest tax paid receipt: All the properties that fall under the BBMP attract property tax that has to be mandatorily paid to obtain a Khata in the owner’s name. The latest tax paid receipts are a proof that the property tax is paid up-to-date to the municipality. However, a buyer should ensure to make enquiries with the government/municipal authorities to see whether all the dues are cleared by the seller on the property. Also the buyer should demand for the latest original tax paid receipts and bills and check for the owner’s details, the tax payer’s details and the date of property tax payment on the receipt. In case the seller does not possess the tax receipt, the buyer can obtain one from the municipal body by providing the property survey number. Apart from this, the buyer should also check if other bills such as the electricity bill, water bill and other utility bills are paid up-to-date by the seller.
5. Khata Certificate and Khata Extract: Khata is nothing but a property account of a person. Khata consists of Khata Certificate and Khata Extract. The Khata Certificate is a crucial document needed at the time of registering a new property/transfer of a property. Furthermore the Khata is widely referred to as ‘A’ Khata and ‘B’ Khata (Revenue records extract). An ‘A’ Khata has properties listed under BBMP jurisdiction with legal property construction, whereas a ‘B’ Khata has properties under local jurisdiction with violated property constructions. It is always wise to buy properties with an A Khata as it denotes a legal construction, besides a B Khata can always be converted to an A Khata through various schemes and the payment of a penalty to the municipality. However, a Khata Extract is nothing but obtaining the property details from the assessment registrar and is important at the time of property buying and acquiring trade license.
6. Occupancy Certificate (for a constructed property): An Occupancy Certificate is obtained after the completion of a project construction by a builder. It is given only after the authorities carry out an inspection on the property. The certificate evidences that the project constructed by the builder has met all the given norms. An Occupancy Certificate will be needed at the time of property buying, seeking a home loan, before taking the property possession and for Khata transfer. It basically confirms that the project is ready to be occupied.
7. Building approval plan: Without a building approval plan, a building will be deemed as an illegal construction as per the Karnataka Municipal Corporations (KMC) Act. This plan is sanctioned by the BDA (Bangalore Development Authority) or the BBMP (Bruhat Bengaluru Mahanagara Palike) or the BMRDA (Bangalore Metropolitan Region Development Authority) or the BIAPPA (Bangalore International Airport Area Planning Authority). It is important that the building owner gets the approved plan from the jurisdictional Commissioner/ an officer authorized by such Commissioner. The authorities sanction a building approval plan taking into consideration the zonal classification, road width, floor area ratio (FAR) and plot depth. One can obtain a building approval plan by submitting a set of documents such as the Title Deed, property assessment extract, property PID number, city survey sketch (from the Department of Survey and Settlement and Land Records), up-to-date tax paid receipt, earlier sanctioned plans (if any), property drawings, 2 copies of demand drafts, foundation certificate (if any) and a land use certificate issued by the competent authority (viz., Dy. Commissioner. Furthermore the requisites of acquiring a building plan include hiring a registered architect to draw a plan that meets the applicable bye laws. Making it easier to obtain a building approval plan, the newly invented BBMP software- Automated Building Approval Plan will issue the plan within a period of just 4-5 working days, provided it meets all the requirements.
8. Possession Certificate (PC): A Possession Certificate has to be mandatorily issued by the Builder / Developer to the first owner. A PC confirms proper construction and allows people to take possession of the property. This document is not reissued at the time of resale; however, it is passed on to the successive owner.
One would need two additional documents in case he’s buying a resale independent house.
9. RTC (Record of Tenancy Rights/Certificate) Document: An RTC or a Pahani is a crucial revenue record that consists of the land owner’s details, the soil type, the water rate, assessment, area, liabilities, tenancy details, crops grown on the land, nature of possession of the land and other details. The RTC/ Pahani document is required for an array of purposes such as : to know the authenticity of the property seller, during the completion of the sale transaction at the sub-registrar’s office, to seek a home loan and at the time of civil litigation (if any). A person can acquire a RTC document from the Pahani centre/online from the Tehsildar’s office for a sum of Rs. 15/- to the revenue inspector.
10. Conversion Order/ DC Conversion (agricultural to residential): A Conversion Certificate or a DC (District Commissioner) certificate is acquired to change the property status from an agricultural land use to a non-agricultural land use viz., residential use or industrial use. The Conversion Certificate plays an important role especially in cities with vast areas of agricultural land. It is issued by a competent authority by requesting the department of Town and Country Planning to issue a NOC for the conversion of such a land. In order to get a DC Conversion Certificate, the land owner should submit various documents such as ownership documents, a photo copy of the land survey number, a photo copy of the revenue survey map of the village denoting the location of the land proposed for conversion and any other information required by the authority.
What are the important steps a buyer should take before buying a resale apartment or independent house?
The buyer should ensure that the property has a marketable title
One of the most important aspects of buying a resale property is to ask the seller for a clear marketable property title. Once you have zeroed down on a resale property, ensure that there are no other claimants for the property. Check whether the property has joint ownership and if yes, ensure that all co-owners have authorized the sale. Seeking the property titles along with the original documents will help in knowing if the existing owner has bought the property on resale. In case any of the documents from the chain of titles are not stamped as regulated, the banks might refuse to offer a loan for the purchase of a resale property. One might also have difficulty in seeking a loan if the resale property is older than 10 years.
The buyer should check for the existing loan on the property
The buyer should check if the original property documents have been mortgaged with the bank/financial institutions (‘Banks’). A bank considers a loan only once the existing owner completely repays the loan and has the original documents formally released. Unless the buyer obtains the original documents he/she will not be able to obtain a new loan. On the other hand, the existing owner will not be able to repay the existing mortgage until the buyer seeking the property raises a new loan. The buyer should also be aware of the amount that is to be paid to the society at the time of transfer of ownership, as some societies charge higher rates.
Loan eligibility of the buyer
If you have decided to buy the resale property via loan, you should keep in mind that not all banks approve loans for properties that are older than 10 years. This is because the banks do not want to take risks considering the depreciating property value. Also most banks lend only if the value of the outstanding loan is beneath the value of the property. The buyer should be aware that the cost of the to-be-bought property has a major impact on the loan eligibility, which would mean that the buyer should make a down payment from his/her end as a stake for the continued maintenance of the resale property. For example, if a property is worth 10 lakhs, the buyer will have to pay 5 lakhs as down payment. The down payment will likely be more if the property is older than 20 years.
Property valuation
It is advisable that the buyer seeks technical expertise to evaluate the property before approaching the bank, as the bank would safeguard its interests by evaluating the property at a lower rate considering the depreciating property value in future. This makes the buyer eligible for a lower loan amount irrespective of a higher income, since the bank caps the loan amount around 80 percent of the concluded valuation.
Ready-to-move apartment
In case of a resale apartment, it is always wiser to buy a ready-to-move in property with all the amenities. Doing this will not just save time that is required for the completion of a new home, but will also save you rental payment on your current property. While buying a resale flat, a buyer can check before hand for all amenities and other requisites. Remember to check whether there are any outstanding dues on the utility bills or maintenance and on the allotment of parking space
Points to remember:
- Buying a resale property is quite advantageous- no project delays, ready-to-move-in property and no service tax/VAT burden.
- Before buying a resale property that is quite old and attracts additional maintenance charges by the society, one should meet the society’s office bearer to know more about it.
- Resale properties are likely to be discounted. They have more flexible payment options.
- For properties aged over 18-20 years, there are possibilities of them being unregistered and registering in the current period will add to the buyer’s burden in terms of stamp duty and arrears.
- A buyer of a resale property should consider the parking space, plumbing, electricals etc.
- A resale property will ostensibly attract expenses for repairs- renovation, labour charges, electrical refurbishment, plumbing, fittings etc. Also acquiring a home loan for a property that is older than 50 years can be quite strenuous.
- A resale property might miss out on the contemporary features, specifications and amenities.
Hi,
We are in a process to buy a resale property in Bangalore. Will we need the first buyers sales deed original copy if we intend to sell it in future.
Please guide.
Thanks,
puneet
Hi Punit
Yes, you will require the original sale deed copy as that will be required to transfer to other party when you are selling the same. However, if the property is bifurcated after the 1st seller/subsequent seller’s purchase and kept in custody of Association (considering the property is an apartment), then you need to have the photocopy of the deed. Incase of Independent house, one need to check on whether there is any mention of original sale deed being with some other party after the bifurcation of property.
Sir
What is the procedure to take building permission and completion report for already build house of 2003 in belgaum, karanataka
Hi Savan
You need to approach the local building approval authority in Belgaum with your documents and check with them on the requirements and process. We are unable to assist you any guidance as not being servicing in Belgaum region at this stage.
Hell Sir
I wish to buy a resale property in Pune 3 bhk flat. The Society is a bunglow plot society , where the builder has constructed 3 storied building , It is 11 years old. Builder has not formed Apartment ( there are 8 members ) nor he has taken completion certificate. But the seller applied for completion certificate for his own flat to Corporation.
I need your advised regarding purchase of property , which documents are required to get a good title and ownership rights as a buyer.
Hi Sanjay,
We only have an indicative list of documents required to purchase a property. It is not exhaustive and the documents required could vary depending on the history of transactions, societies act in different states and any other local laws. So it is best to consult a lawyer with all the documents before you proceed with any purchase.
Hello sir.I buy new flat noida so tell me property documents check needs.
Hi Ravi
We have given a generic list of documents to check when buying any apartment. This may vary according to the jurisdiction of the property and the past history of transactions. So it is best to collect a set of documents from the builder and approach a competent lawyer to vet it.
Sir,\r\nI am in process of purchasing a resale flat at Silvassa which is owned by a company. When the property was purchased fresh, 8 yrs back,company had authorised Mr X ( who has left the company), now the director of the company has authorised Mr Y to be authorised signatory for selling. The seller has provided me the sale deed ( xerox), resolution for authorised signatory, sale agreement ( between authorised signatory and me). I am a PSU employee and my savings a/c some 7 years old is with the same bank to whom I have applied for loan.\r\nPlse guide me with the checklist of documents needed by the bank from the seller.\r\nThanks
Hi T N Jha\n\nIt is hard to say as to what documents will be exactly required for this property in Silvassa. If you are buying from a company, you need to be sure that the previous authorisation (through Power of Attorney) is no longer valid and the new person has the authorisation now. The new Power of Attorney needs to be verified and the old one checked for revocation. You also need to have a Board authorisation if it is a company to sell the property which should be through a Board resolution. Given the kind of documents that need to be checked, we would strongly recommend that you consult a competent lawyer locally before you embark of purchase.
Hello Admin\r\nWe are planning to buy a resale flat in Ambernath (E) we also gave the token, however \r\nNow when we need. Certain docs from the seller they don’t have it \r\nOC\r\nCC\r\nShare certificate \r\nThey say that they lost it….. and don’t know if it has A khata \r\nThe property is 8 years old \r\nWhat should be done bcoz my bank is asking these documents for valuation.
Hi Emmanuvel CS\n\nIf they say they lost it then it is unlikely they even had it. Insist on getting those docs and also take the assistance of a competent lawyer to verify legal title (which would require a thorough scrutiny of all legal documents) before proceeding to buy.
Hi – I am buying a flat which is considered as re-sale, because the current owner has exchanged property with the prior owner, prior owner also get it from his father as gift. The issue is current Khata is in the name of the Father who was one of the land owner of this project. What is the process to transfer Khata to current owner name, please let me know, because bank is asking to get it done to process my loan application.
Hi Mithun\n\nOne needs to apply for the Khata transfer from father?s name to the current owner name with the documents of gift deed or partition deed or the required registered document as applicable. However, this is to done by the seller and not by the buyer. Your responsibility will lie in transferring the Khata from current owner name to your name once the sale deed is registered. So you should insist that this be completed by the seller. If he or you require assistance in getting the Khata transfer, you can use our services. Please send a mail to services@homeshikari.com or call at +91-80-67684444
Hi Admin,\r\n\r\nI am planning to buy a flat which is about 9 years old. Owner has given me the following documents;\r\n\r\n1. Sale Deed\r\n2. Sale Agreement\r\n3. Khata Certificate (need to verify with a lawyer that whether it is A Khata). Contents are in the regional language\r\n\r\nConstruction agreement is it necessary to get? Is it possible to proceed ahead with the above 3 documents.\r\n\r\nRegards,\r\n\r\nKrishnan
Hi Krishnan,\n\nNo it is not enough to just go on the basis of these 3 documents. Please refer to our list of documents that are again indicative. A competent lawyer should be able to scrutinise the documents and tell you what more would be required. If you need help, reach us at 080-67684444 or email us at services@homeshikari.com
Hi Everyone,\r\n\r\nI am planning to buy a flat in Noida 168, in resale (Property is yet to be delivered to the first owner; still in construction). Please can anyone help by sharing information on \r\n1. Which all documents should i request from the first owner (to see if property is legal) and i can get a home loan\r\n2. What all charges are applicable for a resale property (apart from cost of property for e.g. transfer chgs etc.) If possible and can some one share specific to Noida Expressway would be really great.\r\n\r\nBest regards,\r\nKiku
Hi Kiku,\n\n\n1) The documents listed on our website are indicative in nature and one should always check locally on the document requirement with a lawyer. Get a set of copies of all documents from the first owner and then seek assistance from a competent lawyer. The lawyer should be able to guide you on any missing documents or gaps that are required to be clarified for clear title. If the property title is legal, then getting a home loan should not be a problem. You can approach a bank with the details of the project and they can tell you if they will fund it or not.\n\n2) Normally, the first owner would have entered into a sale agreement and since it is still under construction, the sale deed is not yet done. The sale agreement will have clauses on any transfer charges that may apply on the first owner in the event that he does not conclude the sale deed and transfers the right to a second owner. In any case, the price quoted by the first owner should be all inclusive and the only extra cost should be the registration charges and stamp duty applicable.\n\nWe do not presently deal with properties in Noida and hence will not be in a position to comment on it.
hello , i am buying a flat but i came to know that it has tenets living and will leave the house only after 3 months ,but seller is in hurry in selling the flat what can be done so we can close the deal and steps to follow for completing the deal
Hi Dipesh\n\nNormally you do not want to be stuck with the old tenants after you have sold the property unless you want to take over the lease and renew it. There are two ways to go about this. \n\n1) Enter into a sale agreement now and ask the seller to ensure that the tenants vacate within 3 months, post which you can register the property only after it is given completely free of all encumbrances and lets. (rental)\n2) Do the sale registration now, but make sure that you withhold a small part of the consideration till the tenant vacates.\n\nA good lawyer should be able to help you draft the right clauses in the sale agreement or sale deed to protect your interests, while also fulfilling the need of the seller.
Hi..I am buying a resale property in Kolkata for which I applied for bank loan and bank has sanction the loan also, this fakt could only alloted under MIG scheme and there are nomination agreement will be followed by the building in order to handover the property to someone else, my question is that could I face some issues by the precy owner after purchase of said flat or not , my Bank are assuring that they had already checked the property which are okay and there will be no problem at all at neat future.\r\n\r\nCould u please suggest?
Hi Dhirajol\n\nWe are sorry, we are not aware of the procedure adopted in transfer of property allotted under the government?s MIG scheme in Kolkata. It is best that you consult a local lawyer with the documents to ascertain if it is safe to proceed or not.
Dear Sir,\r\ni am byuing a resale flat, i will be the third buyer of the flat the first seller was a minor who sold to my seller in 1985,\r\nnow the bank which i have approached for loan needs copy of the court order for sale by minor, which my current seller doesnt have.\r\nplease advise if i should buy the flat.\r\n\r\nMR. Patel
Hi Patel\n\nMinor interests and sale by a minor are tricky issues and which is why the court order is being insisted upon. It is best that you consult a competent lawyer before you proceed on the matter.
If I purchase an (10 years) old apartment , what should I check in building, in terms of its structure, quality etc , by the way its Noida Authority 3 storey Flat. Thnaks
Hi Sumant\n\nThere is no fool proof way to check the quality of the structure. There are ways to check quality through non-destructive testing but they are not within access and the means of the common people. So the best thing to do is to reference it with other constructions by the Noida authority and their state. Buildings that have poor quality of construction or those which are not maintained properly, start deteriorating rapidly over a 10 year period of time. Cracks develop and there are issues with sewage, sanitation, water seepage etc. This can be ascertained only by talking to other residents in the same complex.\n\nWhen you buy it in a builder constructed apartment, then you look at the reputation of the builder and their general quality of construction across projects to ascertain whether it is good or not. Plus talking to the residents themselves is the best way to verify.
Dear Sir,\r\n\r\nWe are purchasing the Constructed house from individual. For registration of property what is the documents required and what and all taxes.\r\nWe are purchasing Near of Rs. 25 lakhs\r\nkindly advice us\r\n\r\nThanks & regards\r\nRama Govinda Reddy
Hi Rama Govinda\n\nPlease refer to the general list of documents from our earlier post.(http://support.homeshikari.com/blog/12-important-documents-check-buying-property-2-795/)\nHowever this list is only indicative and will vary from property to property based on transaction history, land use conversion, survey numbers, jurisdictional change etc.\n\nSo it is best to take a legal opinion after you have a set of copies of the legal documents before proceeding with the purchase. We repeat that one should not go by the legal opinion given by the seller / builder. You should seek an independent opinion to be on the safer side.
I’m going to purchase a new house.\r\n 1. The builder will not provide the OC & A-Khatta. I insist him to give me the OC & he said that there is some deviation of 27% & hence OC will not be provided. How do i measure the deviation percentage? \r\n 2. The builder is saying that he can guide for A-khatta, but without Occupany certificate is it possible. \r\n 3. The builder will keep the pent house in his name, how do i ensure that there is no other modification will be done in pent house later?\r\n 4. He is asking me to pay the intial amount of 2 L
Hi Sri\n\n1) The builder cannot provide an OC clearly means that there is a deviation and violation of building plan. There is no way to accurately measure the deviation though you could possibly attempt it through a chartered engineer. The violation has to be calculated for the entire building and not just your flat. And how exactly the deviation will be interpreted by officials if Akrama Sakrama is passed by the court is also speculative. Also the scheme even if passed is applicable to buildings completed before 19th Oct, 2013 and not later.\n\n2) Without occupancy certificate it won?t be possible. The land may be A-Khata earlier on, but after construction with a serious violation it cannot be eligible for the A-Khata.\n\n3) You cannot ensure anything there.\n\n4) It is a risk and if you are willing to take that risk where you may be required to shell out a penalty under Akrama Sakrama or perhaps never get a A-Khata, you can proceed.
Hi, I am planning to buy a flat from its first owner. Builder agreement says flat is 1000sq.ft. Sale deed has registered only the UDS. Owner has done a settlement with her sibbling with built up area as 800 and later released it. What will be the sq.ft my sale deed will carry? Am I losing out 200 sq ft without mention of common area. Can my sale deed take the original sq.ft as mentioned in builder agreement. Can you please advise?
Hi GV\n\nIt is best to carry forward the original square footage mentioned in the first sale deed along with its description of the property to enable that you carry the same rights going forward. However, if the sibling (who is a joint owner) has given a release, then it should also mention the same or you should now insist that the sibling be signing the sale deed registration along with the other owner. This will ensure clear right to title. You should take a legal opinion from a competent lawyer after showing all the docs. If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
Dear Sir,\r\nI am planning to buy a property in NeharPar (Greater Faridabad) in resale in RPS Savana. After reading all the above discussion, i feel that my seller has not shown any Khata and all, is it not applicable in Haryana. What is the future of buying a property overthere?
Hi Rajan\nDifferent states have different process and we suggest you to consult a competent lawyer along with the documents to ensure every details are checked legally and any future legal hassles can be avoided. As we are not aware of Haryana Land regulations, unable to provide proper clarification on your query.
Hi,\r\n\r\nI am planning to sell one 2 BHK resale flat in Hyderabad. The buyer want to buy that flat with bank home loan. For that he is forcing me original sale dead & original required documents for bank. Can i give him those documents? Is it compulsory Original documents for Bank? At least i didn’t take token money also. How safe to give those documents for him? Pls help me regarding that.
Hi RK\n\nBank will insist on proof that the original documents are indeed with the seller before sanctioning the loan. However, you are at liberty to not show it until a token advance has been made if you had the choice. Further, you should never hand over the originals to anyone and even if the bank insists on seeing it you should either go to the bank or ask the bank person to visit you.
Hi,\r\n\r\nI am planning for buying one 2 BHK resale flat in talegaon dabhade (society reg) so what are the docs or thing i need to check before buying the same.\r\nplease explain the same.
Hi Santosh,\n\nPlease check with a local lawyer on the requirements of documents at Pune. Again this could vary from property to property, so it is best to have it checked by a competent lawyer. We are not in a position to help with legal opinions in Pune, at the moment.
HI ,\r\n\r\nI have purchased flat at Nasik in Panchavati area below are my concerns \r\n\r\n1. At the time of buying flat builder never told us as terrace will be his property and in agreement he has mentioned no one can claim on terrace and it is the builders property and I signed document without reading and he has built penthouse on top flower for his use . Q-Can I take any action against builder ? Is this legal clause which builder has added ?\r\n2. Builder has given Possession ( I have rented the flat to other family) when building was in under construction as I did full payment except maintenance charges , but he has not issued me possession certificate , now building work is completed but still lift and few areas are not functional .Now he is asking for maintenance charges by showing me paper on which he has taken sign from other members which are in his blood relation (Building has 16 flats , 8-9 flats are owned by his family members in blood relation like brother / mother / sister and 2 flats owned by his investor , remaining by peoples like me ) he has not formed any society asking me to handover amount to him only , also for non-sold and investor?s flat is is not ready to pay maintenance . Q- Can I pay the maintenance charges or not .,Is this legal ?\r\n3. Apart from maintenance he is asking some extra amount build home for building security guard . Shall I liable to pay the same ? other members in his relation are signed on simple paper .\r\n4. Builder has not given me Building completion certificate / OC / A Khata / Building plan details . How can I avail these documents ?\r\n5. As above documents are not with me , can I sell the flat ? what could be the issues in same .
Hi Swapnil,\n\n1) Signing a document without reading it or claiming to have not read it puts you at a disadvantage. It is to be reviewed if your document allows you for use of the terrace and whether a penthouse on the terrace is something that is legal as per the building approvals. If the builder has gone against approvals, then you can seek remedy through a consumer court. But before that the documents will need to be reviewed by a competent local lawyer to ascertain your chances in the event of a fight in the courts.\n\n2) Again this will come under deficiency of service where he has not provided the necessary facilities but is demanding maintenance charges be paid on the basis of some people paying it. Again this will be dictated by the agreement with the builder and only a lawyer will be able to review the documents and tell you what your chances are.\n\n3) If the association has been formed then the association can decide on doing some extra amenities within the bounds of building laws and charge the members for it. In such a situation, if you have an objection you need to file it at the association meeting. If the builder is randomly demanding something, you can seek legal recourse in a consumer court.\n\n4) If the approvals were obtained in the first place, then he ought to give you the completion certificate and a formal possession. If that was not done, you can consult a lawyer to enforce it.\n\n5) Yes, there will be issues when you sell the flat if you don?t have all the documents or the flat may fetch a lower price because of the non-availability of some of these docs.\n\nAgain, we reiterate that it is important to review your documents thoroughly before deciding on any course of action. And only a competent local lawyer will be able to help you with that.
I read your blog. This is really very interesting and useful tips to apartment and any properties. These points are really very important when you are going to buy apartments or Flats. This is really very useful to first time buyers. Thank you.
I am looking for flat in purva fountainsquare. The seller does not have A khata, however i was told that this property is eligible for A Khata, so i should be able to apply and eventually get it after registration. Could you please confirm if PFS is eligible for A Khata? Is there a way to find out eligibility? After registration, how much does it take to get A Khata?
Hi Tulika\n\nEligibility for A-khata can only be checked against the documents. If the property was eligible then why did the seller not procure it? Can the seller procure and give it to you before registration of sale deed?\n\nFor checking eligibility, the copy of sale deed and the taxes paid up to date receipt will be required. If you need legal assistance from HomeShikari, please mail us at services@homeshikari.com or call us at 080-67684444. We have some of the best legal experts helping us out.
hi sir-\r\ni am purchasing an apartment resale unit in haryana dharuhera.. \r\nBuilder name-vipul\r\nmy home loan is in process with hdfc.. Loan is already sentioned.. Its stuck in legal stage.\r\nAll property docs photocpies were already submiited along with all payment receiptsn now they have asked for Sellers bank statement\r\nwhich seller is denying to give.. Bank is asking bcoz to verify whthr all payments are made from sellers account or not… Reason being, there were two dupicate certified copies of builder buyer agreeement n addendum agreement.. Originals were lost, fir done for it and already published in news paper..\r\nTried to convnce seller but he is not ready to give.. Unfortunately seller is a lawer..\r\nNow loan is only stuck due to that.. Is there an alternative to it?? Registry of property is being done this month \r\nbtwn builder n buyer(who is a seller now)..\r\nAccording to ATS registry date is approachng which is 20 of this month… Request u to pls revert as earliest sir.. Thanx
Hi Naveen,\n\nAs the Sale registration happened between Builder and Buyer (present seller), we donot feel necessity of having the Bank Statement due to loss of Sale Agreement & Addendum agreement between parties to prove clean title/payment transaction. Please check with Bank on whether this is absolutely necessary. If not, try to convince the Seller on this citing Bank loan requirement.The other alternative would be to approach a different bank that is not insisting on this statement. However, the bank may be insisting on it because they probably have some concerns on the title of the property. In all such cases, seek a legal opinion with a qualified lawyer before you proceed. Irrespective of whether a bank approved a loan or not, the onus of responsibility to repay a loan only lies with you and hence should there be any issues on title in future, you will be the only person liable. So proceed with caution
Dear Sir,\r\n\r\nWhat is a consequence of buying B khata property? what are the problems arise in future and how one can get A khata and OC of property if builder dont do anything as he had made deviation in property and his all house are now sold.. so he is least interested in all things.. than what could buyer do to get OC and A khata?
Hi Vaibhavi,\nIf you have a property that is not eligible for a A-Khata due to the deviations in construction by the builder, then the only way to regularize it is to wait for the Akrama Sakrama scheme to roll out. If and when the scheme is rolled out after court approval, you can apply for regularization. There are conditions that the deviation should not be more than 50% on both setbacks and FAR and if that is the case, you may get away with paying a penalty as per the guideline value. If the deviation is more than 50%, then there is no chance of regularization as per any known schemes being talked about at the moment.
Dear Sir,\r\n I am planning to buy a resale house in Dum Dum ,North 24 Pargana, West Bengal. Presently the house is in the name of Smt B. Banerjee. She bought it from Gita Mukherjee 4 years ago. Smt B. Banerjee has done all process regarding mutation in Dum Dum Municipality. But the Blro mutation and conversion has not been done. They paid the BLRO tax in the name of original owner. Now I have the following doubts\r\ni) which doccuments should i check before buying the property?\r\nii) Where do I get the encumbrace certificate?
Hi Sourav Roy, \n\nPlease consult a competent lawyer with the documents. Its better to take an legal advice on this. Unfortuntaly, we donot service in Kolkata and will not be able to assist you.
Hi Sir,\r\n\r\nI am planning to buy an resale flat in “Prabhavati Woods” in begur road(Bangalore).\r\nBut the first onwer says it has some deviations and they have a B-Khata for the flat, Is it safe enough to go for the flat and how can i make out the extent of violation.\r\n\r\nOne more query I have is even for resale houses do I have to pay the down paymnet of 15% if I am purchasing it through Bank loan.
Hi Bipin,\n\nWe would straight away not recommend it because it would have deviated from the approved plan. If and when a Akrama Sakrama comes into effect, the regularization will happen with payment of betterment and penalty charges to BBMP, only if the deviation is within acceptable limits. Approach BBMP to know the extent of violation. Banks normally fund upto 75%-80% only and their funding will start only after you have made your part of the down payment (which could be more than 15%). Different banks have different norms for down payment, loan sanction and approval and it is best to check individually.
Dear Sir,\r\n\r\nI have seen a property (under construction) in Kopar (which is between Diva & Dombivli station). But the property is not KDMC approved. They have given the survery number as 46 & Hissa number as 73. I wanted to know whether I can get a loan from any bank other financial institution.\r\n\r\nAwaiting your reply.\r\n\r\nRegards\r\nChandrakanth
Hi Chandrakanth,\n\nBanks usually fund projects that are approved by the respective municipal / local authorities. If it is not approved, then it is unlikely that any public or private sector bank would fund it. However, different banks have different norms for loan sanction and approval and it is best to check individually. Some NBFCs like DHFL may fund such projects, but it is important to check before you make any commitment. Why don’t you check with the builder as to which financial institution would provide a loan for the property. However, we recommend that you check the title papers and approvals through a lawyer before you proceed with any buy.
Sir,\r\n\r\nI have revently purchased a flat in Delhi and have the complete chain of documents except for one earlier set of papers. I do have a photostat of the same but not the original. Please advise me what to do and whether i would be able to resell my property.\r\n\r\n\r\nThanks and regards
Hi,\nIt is difficult to comment on this as we do not know what that missing document is and even if we knew it is important to verify the document before you can comment on it. It is best that you show the photocopy to a lawyer and understand if it is important to have the original or if it is adequate to have a photocopy for the purpose of both title and for resale, at any future point of time. If it is not a key document, then you can even obtain a certified copy of the document through a lawyer.
Dear Admin, \r\n\r\nI see one flat, ground floor. legal building, OC & CC also clear, but building of 28 Years old. We want nationalise bank home loan on this flat ( Punjab national Bank / State bank of India ), So give me suggestion regarding this Loan.\r\n\r\nFlat Amount – 75 Lakh.
Hi Mangesh Verulkar,\n\nDifferent banks follow different loan processing procedures, so we won’t be able to tell you if a particular bank will approve a loan or not, on a given property. It is best to individually check with the bank. Banks do fund old properties and if the legal titles and OC / CC are available, nationalized banks should be accepting a loan sanction on such properties.
Hi,\r\n\r\nI am planning to buy flat in smondoville – Patel Reality, its resale flat but owner haven’t received Khata transfer, so please advise, should I wait for Khata Transfer from builder to owner and then go for registration.\r\n\r\nPlease advise..
Hi Gajanan,\nUsually builders promise a Khata transfer but sometimes delay it or even do not help later. So it is best to check if the property is eligible for a A-Khata before you proceed. If it is eligible and you still want to proceed before the Khata is transferred to the owner, then ensure that there won’t be problems in future and that you have a hold on the deal till the Khata is transferred. If you need assistance, you can email us at services@homeshikari.com.
Dear Admin,\r\n\r\nI am planning to buy a resale flat in Bangalore from a person who is at age of 87 years, do i need to get his children added as witness in the sale deed as per rule/law? OR an thing else that i should be aware of?\r\n\r\nthanks,\r\nJithesh
Hi Jithesh\n\nIf you are buying the property, please get the legal title vetted by a qualified lawyer. If the property is self-earned by the 87 year old and he is the sole owner, then only his signature will suffice in the sale deed. However, if the property is an inherited one, then one would need to check legal heirship or a registered will and everyone who has a share in the property needs to sign (that could include son/s, daughter/s). Best to consult a lawyer, if you need help mail us at services@homeshikari.com. Some of the best legal minds work along with us.
Dear Admin, \r\n\r\nI am buying a resale property which was on mortgage with United Bank of India against a house building loan. However i did a down payment by which the seller was able to clear the loan and get a NOC from the bank. then i applied for a home loan in a nationalized bank, after my profile verification i got a sanction letter of 20lacs, but later on the bank said the property is in panchayat area and is not of that value and they gave me a revised sanction letter of 15 lacs, in these processes it’s almost 2 months now. 2 days back i received a sms that my loan has been disbursed, but now they are saying that the original mother deed of the property is required which unfortunately the seller doesn’t have, i asked them if i can produce a certified copy of the same but they are saying that because the property is in panchayat area it will not be considered. Now it was in 1994 when my seller bought that land from someone and they have no clue where the previous seller is now. . The bank is now asking me to write an email to them asking to cancel the loan. What should i do. Please advice,\r\n\r\nThanks\r\nAnupam
Hi Anupam,\n\nIt is unfortunate that the bank didn’t inform you on the things required right upfront. Since you released a mortgage with United Bank why not approach the same bank again. Different banks have different norms for documents and there is nothing much that can be done about it. It is best to try and meet the respective Bank manager and try and convince him about the non-availability of the document citing that the same papers were mortgaged with another nationalized bank. If they didn’t intimate you about the requirement properly then it is their fault and do not send a mail requesting cancellation. Try speaking to the bank or raise a complaint with the documentation through the banking ombudsman. This is not going to solve your problem, though. So please approach a private sector or public sector bank which may not insist on the original mother deed. In my opinion, the bank should be satisfied with a certified copy from the sub-registrar office.
Dear mam/ sir \r\n\r\nI am likely to purchase registered property in Delhi how can i get proper chain of such property and inspect a property whether seller is owner of property \r\nkindly guide me and provide procedure to inspect and obtain chain of such property \r\n\r\n\r\nthank u
Hi Santosh\n\nYou need to seek the assistance of a good lawyer in Delhi to check the title and the chain of ownership.
Dear Sir/madam,\r\n\r\nI am Ravikumar B from Belgaum working in Bangalore.\r\n\r\nWe have old house in Belgaum and planning to construct the building in existing property. As its a old property we do not have sale deed for our property. I heard to get the building permission we need NIRANTAR PATTA (Old document) of our property.\r\nRequest you to let me know how to get NIRANTAR PATTA document.\r\n\r\nThanks & Regards\r\nRavikumar C B\r\n9663611552
Hi Ravi\n\nIf the property belongs to your ancestors or has been willed to you, then you need to produce those documents and get a certified copy of the sale deed. Why is the sale deed absent? Was it lost? Without the sale deed it is not possible to get the Patta. The Patta is a revenue record and the record is changed to the present owner via the sale deed. Please consult a local lawyer to check on what documentation you already possess and what you need to obtain and then proceed.
Sir\r\n1) I have an apartment for which I have A Khata in my name , I have paid property Tax also. But I don’t have OC for the apartment. is this safe?\r\n 2) will BBMP issue A Khata and Khata extract without OC ?
Hi Sadanand\n\nIf you already have A-khata for your individual unit and you are certain that it is genuine, then you are probably safe. The OC is normally given to the entire apartment complex or building after inspection and validating whether the building is as per approved plan and whether it is fit to occupy. Your builder should have got an OC if you were able to get an A-khata. Obtain a copy either from the builder or the association and keep it. If an OC has not been obtained then it is better for the association to make concerted efforts towards obtaining it after inspection. In recent news reports there were reports of disconnection or higher tariff being charged for buildings with no OC. So it is better to obtain it to show the building is compliant in all aspects.\n\nOf late, the BBMP is not issuing A-khata without the OC.
Dear sir,\r\nI have purchased a resale property,while buying the property i had not seen the latest property tax receipt.Now i come to know after 1 yr that he had not payed the property tax for the passed 3yrs, what are the consequences if i pay only property tax applicable from the period i had bought the property and if not what is the solution. my property comes under KDMC ( Kalyan )
Hi Dinesh,\n\nThe property is now yours and the tax authorities are not concerned whether the past dues were because of previous owner or the new owner. The onus of responsibility to pay taxes now lies with you. However, on a separate note if your sale deed mentions that the seller was to clear all tax dues up to that date, then he/ she should have done it. First talk and negotiate with the seller to pay you the due amount. If that doesn’t work then you have legal options which again depends on whether the amount is significant enough to pursue legally. But pay the taxes first because penalties may be levied for non-payment and the final responsibility now lies only with you.
dear sir,\r\nI am planning to take an old individual house which has A katha and sanction plan for 2 floors. There has been one more additional floor built without plan, for which owner says he will get me panchayat plan for the 3rd floor. Also the below sanctioned floors have been leased out to tenants which i have to clear after 3years hereby reducing by purchase amount and loan required.\r\nAdditionally the property had been sold to a relative of the owner 3 years back and bought back again this year.\r\nMy questions are:\r\n1. can i go ahead and buy the property – is it safe as no sanction plan for 3rd floor.\r\n2. will i get loan from a nationalised bank or LIC\r\n3. will it be ok to take the lease amount payment for later date, if i take NOC from tenants.\r\n4. since property is bought back, should i take any precautions like asking for the relative to sign in the agreement\r\nThanks in advance\r\nRaja
Hi Raja\n\nThe A-Khata was for the land and a sanction plan was given for 2 floors. If a 3rd floor was constructed then it is clear deviation from plan and you will have to wait for Akrama Sakrama to be implemented, when it can possibly be regularized by payment of penalty. How much penalty and whether it qualifies for regularization is dependent on how much the deviation is.\n\n1) You should go ahead with it only if you are OK with the risks and are ready to pay up a penalty when regularization happens.\n2) Any nationalized bank will normally not fund a B-khata property, there are some private banks and NBFCs that do.\n3) It all depends on the lease agreement and a transfer of lease is possible. But make sure that you don’t get into a problem with the tenants. The norm is to vacate tenants and enter into fresh agreements at the time of buying.\n4) Again can’t be commented on unless all the documents are verified. You should consult a qualified lawyer and take an opinion on the legal title. HomeShikari can also assist you on this.
Hi All,\r\n\r\nI am planning to buy newly constructed apartment flat which is located @ Sarjapur Road.\r\n\r\nAfter verifying with our lawyer we found that there is no mother deed.\r\n\r\nCan you recommend to buy this flat?\r\n\r\nRegards,\r\nRanjith
Hi,\r\n\r\nI am buying a resale apartment in Banashankari area Bangalore, after getting the documents verified by lawyer, lawyer found an observation that the Khata extract has total built area = 1600 Sq Feet and the Sale Deed/EC has built up area = 1200 sq Feet. Hence, lawyer suggested to get the khata extract corrected first and then get in Sale Agreement.\r\n\r\nI enquired with other owners who stay in same apartment and they say they too have the same problem where the total built up area in Khata Extract and Sale deed are different.\r\n\r\nMy Clarification:\r\n1. Should I ask Owner to get the Khata corrected?\r\n2. Will there be any issues in future with BBPM as i will be paying property tax for reduced area i.e 1200 Sq Ft?\r\n3. Will there be any issues in getting undivided share of land?\r\n\r\nPlease advise.
Hi Haroon\n\nReplies to your queries\n\n1) Yes, you should ask the owner to get it corrected. If not the onus of getting it corrected it later will fall on you.\n2) The khata document is your reference for payment of property tax. If you pay on the basis of the reduced area, then there is a likelihood of penalty being levied and then penal interest as well on amount overdue for the shortfall. It is best to get it corrected to the right measurement.\n3) It all depends on what the sale deed clauses are. Also if everyone has only 1200 sft as against the wrongly mentioned 1600 sft, then the undivided share is unlikely to change. However, if some of them are actually having 1600 as against 1200 that you have, then there could be confusion and dispute on the undivided share.\n\nPlease consult a qualified lawyer and get it sorted out. If you are looking at buying the property then please insist that the error be corrected before you make the final settlement and sign the sale deed.
Hi,\r\n\r\ni am planning to buy a resale apartment(BBMP approved A khatha property) in Bangalore, and the project is approved by axis bank .Once i have decided on this property approached SBI for home loan, for which they are asking for documents such as RTC’s, Index of land and records of Rights ,e-Survey Sketch Hissa Tippani Atlas Nakalu and Akarband for related survey no, acknowledgment of registration of partnership firm(of the builder). Which are not available with owner, in this scenario is it safe to proceed with the deal. Please share your comment.\r\nthanks \r\nPeter
Hi Peter,\n\nWe keep repeating this with every client and every query that a bank loan sanction is no guarantee to clean titles. The banks have their own norms to check the property documents but more importantly they are checking on your paying capability and your creditworthiness when sanctioning a loan. If the title is found to be bad later, the onus of responsibility to pay up the loan still vests with you as the borrower. The bank takes no responsibility because it has sanctioned the loan or approved the project.\n\nNow, if you are clear about that then you will understand that different banks follow different guidelines for approving projects for customer home loans. The more stringent norms are followed by the public sector banks led by SBI. Private banks follow more relaxed norms because they need to be competitive in the market. NBFC Home loan companies will probably be even more relaxed. If SBI is asking for all this documentation, it is in your own interests to see to it that the seller furnishes it. Just because a bank allows the seller to furnish lesser documentation doesn’t mean it is better. In all these cases, I would recommend taking a third opinion from a good lawyer to protect your interests and advise you properly on whether a project is safe to buy or not after scrutiny of all documents.
Hi,\r\nI am in bangalore and want to buy a flat in the complex I currently live in . I am currently renting in this complex. The seller is saying that the land on which apartment is built is A khata but the building itself does not have a khata. The builder has submitted all the papers to BBMP, but for some reason or maybe BBMP is asking for bribe, they have not given the Khata for the building. Can I buy a flat here without the building khata? They are saying the land is on A khata.
Hi Roshan,\n\nThe land on which the property is built is probably A-Khata. But when a building is constructed, an approval is sought by the builder to the BBMP / BDA / BMRDA as the case may be, depending on jurisdiction. If the building is constructed as per approved plan, then the individual apartments should be eligible for the A-khata. The problem comes when the builders deviate (90% of them do) from the plan and there is a violation. Then an occupancy certificate will not be provided by the authorities and so will the individual units be not eligible for a A-khata. Citing the BBMP as an excuse for not getting the A-khata is not right. We have got A-khatas for so many clients in Bangalore without PAYING A BRIBE provided the building construction was done as per approved plan and all the property documents are in place. It will take some running around, but it is very much possible and do-able.\n\nIf the copies of papers are provided, it can be checked whether the property is eligible for a A-khata. If it is, then it can be obtained once all documents are submitted and tax paid up to date. If it is not eligible, then one can only apply for what is referred to as B-khata, which is merely an entry into the B register for property tax collection. It means it has a violation and it can be rectified only if a scheme like Akrama-Sakrama is rolled out. When that will happen is anyone’s guess. But transactions on B-khata continue to happen every day.\n\nMost banks don’t fund B-khata property, but there are some housing finance companies and possibly some private banks that may do it.
Hi Himanshu Sharma,\n\nWhen someone is buying a property, it is normal to expect that all liabilities and encumbrances with respect to the said property are cleared before hand. Hence society charges should also be cleared by the seller up to the date of sale. However, if the buyer and seller agree then the society charges could be paid by the buyer after purchase of the property. It is important to discuss and put everything in the legal agreement to avoid any kind of confusion and conflict. Some societies have a requirement that all pending dues have to be cleared before sale of a property.
Dear Sir. Kindly help me to resolve an issue. We have a flat in a Cooperative Housing Society in New Delhi since 1985. It was registered in my father’s name. After my father’s death in 2005 the flat was transferred to my mother’s name in 2006. My mother died in May 2014. My mother had decided to sell the flat 4 months before her death and took some token money from the new buyer. The sale was to be completed by June 2014 but my mother died before the sale. The agreement to sale was made between her and new buyer but could not be materialized due to her sudden death. We are 3 legal heirs after her death. She had made a will stating to sell the flat and distribute the money equally between we 3 legal heirs. We 3 have agreed to her wish and want to sell the flat to the same buyer with whom she had agreed to sell the flat. We 3 decided to transfer the property in my name for convenience sake as the other 2 heirs do not stay in Delhi and they cannot travel frequently for property transfer related matter etc. Hence they gave me RD (Relinquishment Deed) in my name. My name transfer on society share certificates is in process and should be completed in few days. In the meantime the buyer wants to apply for the loan to buy the flat and for this he says;\r\n1. Property needs to be transferred/registered in my name. As per buyer, the flat is still not registered in my name and the RD merely gives me right to perform transactions like renting it, paying bills etc., but I am still not the legal owner of the property and thus cannot sell it.\r\n2. The loan offering bank needs the “Mutation Deed” to apply for transfer of name in MCD stating us that all banks require this document before sanctioning the loan. \r\n3. Buyer says apart from this the Legal Heir certificate is also required as this certificate would legally bind we three with the RD.\r\nAs per the buyer, all the above 3 points are mentioned by the bank. Kindly guide me is it indeed required to provide the requested documents for loan application. Cannot bank sanction loan based on my name in society share and records, RD and sale agreement between me and buyer? I feel the buyer is putting new demands for documents every now and then. Kindly guide me appropriately.\r\nBest Regards
Hi Babu,\nFirstly your mother’s will needs to be probated in Court. Following which you can obtain a relinquishment deed from your siblings(with the Legal Heir Certificate). But do verify the contents of Relinquishment deed as to what rights are being relinquished (include selling). The Buyer is right in this context as he needs to safeguard his interests. He needs to be sure that you are the absolute owner of the property and there will be no future litigation on this property. The banks too will not provide loans if they are not absolutely sure of the legal ownership of the property.
Hi \r\n\r\nI am planning to buy an apartment which is 6years old. The apartment is at the Ground floor for Car parking. The apartment is constructed in a layout near Banashankari. I had a discussion with the Apartment Owner reason for selling the apartment (due to he is moving to other location). The apartment owner is having loan in one of the leading bank and he informed the loan will be applicable / sanctioned to this property. Also i would like to know how much percentage of loan will be provided for these kind of properties by loan\r\n\r\nPlease suggest me what are the things i need to check and verify before making the final decision.\r\n\r\nAs i am buying the apartment for the first time in my life.\r\n\r\nRegards\r\nSanthosh
Hi Santhosh,\nProperties that have a A-Khata get funding from banks (both public sector and private). Properties that don’t have one, and have only a B-Khata may face difficulty in getting bank funding. But there are NBFC housing finance firms that may extend loans for the latter kind of properties depending on the repayment capability of the customer.\n\nThings to check are given in the blog. Do a proper legal due diligence through a qualified lawyer before you close the deal. Enter into a sale agreement if you are convinced about the legality based on initial scrutiny. But do the sale deed only after the lawyer gives a green signal. Keep your sale agreement in such a way that you can get out of the contract, with or without penalties on either side. Normally, banks and NBFCs fund up to 85%, it could be 80% only with some institutions. That’s the maximum based on eligibility of the customer.
Hi,\r\n\r\nThis is Vinod, I am planning to buy a resale apartment. What are the steps/precautions that I needs to be followed. When the sale agreement is going to happen ?\r\n2) when the sale deed going to happen\r\n3) What are the documents that I need to ask for the seller for the lawyer verification \r\n4) Seller is saying that he is having a loan with canara bank, so the original documents are with the bank only, he was saying he can provide the xexox copy for the verification\r\n5) I am planning to go for a loan, whether I will be getting a loan for this , if yes the amount is going to be paid directly to the seller\r\n6) How many days its going to transfer the flat on my name \r\n7) What are the amount I need to pay other than registration
Hi Vinod,\n1) Discuss with the seller and collect all preliminary information like the type of property, khata, free from encumbrances other than the canara bank loan. Seller may share copies of some key documents for to take the first step (sale deed copy).\n2) Make visits to the property or get family members to visit and be convinced that it suits your need\n3) If you are convinced, start negotiating and come to an understanding on the price and the way forward.\n4) Once you settle on the price, enter into a sale agreement (a contract between you and the seller) with an advance payment. Advance payment can be anywhere between 5%-15% or mutually acceptable terms. Ensure you have a lawyer draft it for you because you need to safeguard your interests. You are the one making the initial payment.\n5) Based on this sale agreement, the seller shares copies of all documents, shows originals where necessary or as requested by your lawyer to verify clean title. There is no single check list for document verification. You basically trace the history of the property and ask for every document transaction that happened until the last one. There are several documents that a verifying lawyer will ask for and the seller has to produce the documents. If you are going for a bank loan, the bank will also insist on scrutiny of the same documents. \n6) You are normally given 90 days to verify all paper work and make the final payout, so that the property can be registered / transferred to your name. Sale agreement will mention the time period and penalties (if any) as mutually agreed between the two parties.\n7) Whether the bank will fund your loan or not is dependent on 2 things. First the property should meet the requisite parameters of the bank. In this instance, if Canara bank has funded the seller already, then it should be possible for you to get funding as well. The next aspect is your paying capacity. How much the bank funds will depend on this.\n8) Your funding bank will settle the loan of the seller and get the documents released (original) and then take possession of them (you are carrying the mortgage now). Payouts will be done directly to the seller’s bank loan account and any excess will be paid to the beneficiary (seller).\n9) How long will all this take, is dependent on you and the seller. Normally property transactions should culminate within 90 days from the date of sale agreement. Before the sale agreement, it depends on how long you take to make a final decision.\n10) Registration cost is to be borne by the buyer. There may be some extra charges demanded by the registration authorities in the form of bribe, which your lawyer should be able to handle.\n\nI presume you are an NRI, if so buying in absentia will require a POA (specific power of attorney) to be given in favor of someone in your family here. If none are available, then you can make a visit to register the property. Or give HomeShikari a specific POA to deal with it. The stamp duty cost of giving a POA to a third party is excessive when compared to giving it to a family member.\n\nIf you would like complete assistance, then go with the HomeShikari buying assistance package and it should help you manage the whole process.
Hello sir for registration of a resale flat if previous document is registered then the property is clear or not plz rep
is it good to Buy B katha Resell flat ?\r\n\r\nIf I will go for the same what will be the impact – Please suggest..
Hi Anil\nBuying a B-Khata resale property means that the building has a deviation from the prescribed building norms or has a violation. The extent of violation may or may not be known by merely looking at it. B-Khata properties normally are lower in prices due to the fact that there is a violation and that such violation can only be condoned through a penalty which may be applied under schemes such as Akrama Sakrama.\n\nIn a building that has less than 25% violation or which does not exceed a 50% violation, you can get away by paying the penalty charges once the Akrama Sakrama scheme is implemented. Anything above will attract only demolition for serious violation. So assess whether the property will get covered under the scheme announced using the services of a certified engineer. Also do not expect Akrama Sakrama to regularize all deviations whatsoever on an ongoing basis. That is only wishful thinking. The authorities will at some point crack down on illegal constructions and those that flouted all norms (having more than 50% violation).\n\nAlso remember, B-Khata properties don’t get funding from banks. Only a few select NBFCs provide loans for such properties (at higher interest rates).\n\nThat said because of the announcement of the Akrama Sakrama, it is safe to buy a B-Khata property provided it will be covered under the scheme.
Hi,\r\n\r\nI am going to buy a resale flat. Loan transfer is through the same bank. Bank has initiated the valuation process. However, seller is insisting for sale agreement with the payment of 20% amount.\r\n\r\nWhen should I pay him this 20% amount? Is this be given with Sale agreement or Sale deed?
Hi Vijay,\r\nThis is a commercial decision between you and the seller. In Bangalore, it is a norm for the Buyer to pay some advance amount, but again this is not binding and there is no fixed %age. You can take a call after having a mutual discussion with the Seller.\r\nThe advance amount is usually given with the sale agreement. If you are fine with making the payment, ensure that you have drafted the Sale Agreement accordingly, so that if the sale does not happen for any reason in the future (Either from seller’s end or your end), the money is refunded back to you. Do also get a legal opinion on such inclusions.
I have bewly bought a flat, and I missed to check the previous property tax paid receipt.\r\nNow the seller says, he will not pay that amount.and the amount is of 35k.\r\nwhat should I do now?
Hi Prachi,\r\nUnfortunately, you have just two options.\r\n1) Check your sale deed with a lawyer to see if there is a clause that states the seller is liable to pay all previous dues. If yes, you can file a suit against him. It may cost you more but you can claim compensation if you win the case in court\r\n\r\n2) If there is no such clause, you will have to pay the tax.
Can i buy a resale property without an occupancy certificate..? For instance, if the doesn’t have the OC or lost the OC, what would be the next steps in proceeding..? How can I get the OC, if i couldn’t trace out the original builder..?
Hi Karthik,\nIf the Seller does not have the OC, check whether he has the Khata Certificate. If yes, you can go ahead. Also, if he had lost the OC, he has to file an FIR regarding the same. He may need to ask other fellow owners, whether they have a copy and use that along with the FIR. Before purchasing the said property, ensure that you get a thorough legal opinion to check the saleability of the property.
In this scenario (resale), the seller didn’t loose the OC. Originally the builder hasn’t provided any OC. But, A Khatha certificate/extract is very much available with the seller. Hope I can proceed with that. Also I would like to know whether Lawyer, can give a legal opinion without OC. My lawyer was very particular about OC.
Most apartment buildings in Bangalore do not have a OC and that does not pose a deterrent to a sale, at the moment. Banks do provide home loans for properties without OC, but which have the A Khata. And it should be possible for you to sell the property if you wish, to anyone else.\r\n\r\nA lawyer should be able to give you legal opinion based on the documents you produce for validation. A good lawyer should be able to advise you on what other documents are necessarily required in order to ensure marketable title as well as safeguard your interests and what are minor; those that don’t pose a threat to title. Whether an OC is absolutely necessary or not is dependent on the property that you wish to purchase. Prima facie, though it is good to have the OC which means that the property has not violated any of the building norms or plan approvals and is fit for occupation, the likelihood of such properties being available in the market are pretty less.\r\n\r\nSo take a judicious call and choose a good lawyer. Especially because property is a lifetime investment and going wrong with such a decision could be fatal. Ask yourself if your lawyer can give you an unbiased opinion, has the expertise to evaluate all possible issues and last, but not the least will be around for the next decade and beyond, should you ever run into a problem due to unforeseen change in circumstances. If you need assistance from the HomeShikari empaneled lawyers for a second opinion, feel free to contact us.
Sure, will get an second from empaneled lawyers from Homeshikari. Infact. the property which I had shortlised via homeshikari portal. Also I would like to know whether can I get an OC in mere future for the intended property..?
Hi Karthik,\nWe’re happy to hear you found a property on our portal and will be glad to assist you with a legal opinion. You may contact us on 080-67684444 or enquire on our website(http://support.homeshikari.com/property-services/legal-opinion).\nIn regards to the getting the OC, it will be given only if the property followed all the building norms and was constructed as per the plan approval obtained. In the event of the deviation, it is unlikely that an OC will be given. While the OC takes precedence in most Western countries and classify the dwelling as ‘fit to live’, in India the OC is generally ignored. Even banks continue to finance home loans against properties with no OC, provided they have the A-Khata.\nThe OC comes into play when there is a major accident or disaster (fire etc.) where insurance can decline payouts on the basis of ‘no occupancy certificate, not fit to live’. 95% of all builder apartments cannot get an OC because they would certainly have deviated from the approved plan in some manner.\nIf the building is as per norms and followed the approval plan, then it will get an OC. If not under schemes such as Akrama Sakrama it is likely that you will only get the A-Khata and not the OC.