Dos And Don’ts Of Property Buying

Property investmentBuying a property is one of the most crucial decisions of one’s life as it involves a large amount of investment and sometimes even the life savings of a person. Owning a property today has become an integral part of existence and of society- be it for habitation, investment or social stature. Well, just the thought of buying that intricately designed smart home in a posh locality makes us feel elated but are we aware of the property buying tactics, the prevailing realty trends or the various crafty ways through which we might be duped? Brace yourself with the following do’s and don’ts before you grab your dream home.


1. Start with knowing the purpose of investment. Prior to shortlisting a property, know your budget. Consider various factors such as down payment, monthly mortgage payments, property tax, outstanding debts, insurance and other expenses of buying and owning while deciding about the budget.

2. Do a prior realty market research to get the best property at apt prices. Compare the same with other localities and properties keeping in mind factors such as connectivity, facilities, proposed infrastructural development and more.

3. Choose a property based on its location and its proximity to schools, work place and other facilities. Similarly, you should consider the surroundings of the property as it creates an impact on your lifestyle. Do not forget to know about the resale value of the property.

4. Get a pre-approved loan for the required amount by sharing your financial information with a lender.

5. Consult a professional tax consultant if the property is purchased via a loan. A tax consultant will tell the advantages and disadvantages based on your disposable income, the type of property, expected rate of interest, and tax benefits.

6. Ensure that the plot on which the building is constructed is a non-agricultural land and that the building is in the builder’s name.

7. It is mandatory that you ask the builder/ owner for important original documents such as Title Deed, Sale Deed, Occupancy Certificate, Clearance Certificate, Commencement Certificate, Encumbrance Certificate, Khata, bank certificate with the loan status, the number of cheques given to the bank, plan sanction document, tax receipts and bills, electricity/ water board sanction document and fire safety approval. Do not forget to know the property age and valuation.

8. Hire a professional home inspector and obtain the inspection report from him. However you can personally check the property for the structural elements, exteriors, plumbing, roof and attic, electrical units and the garage.

9. Seek legal vetting for the complete property paperwork and read it completely to ensure that the clauses are in favour of the buyer. Legal counsel will also help the buyer in proper procedure of the payment of stamp duty and registration, which eventually helps in taking legal action in future.

10. Ensure that the property has all the amenities as mentioned in the project brochure. Be certain that all the amenities are offered before you sign the documents and do not rely on the builder’s promise of offering the amenities later. Be particular about the parking slot and maintenance charges.

11. Check if the lease deed is registered in the name of the developer/company; check if statutory approvals are in place for environment, aviation and fire; also check if the map/layouts have been sanctioned.

12. Check if the co-operative housing society has been formed and the conveyance deed of the property is in favour of the society.

13. Although you might not pay much heed to these, but it is crucial to check and be completely aware of the builder-buyer agreement, escalation clauses, penalty clauses-payout, interest rate reset clauses and registry costs. Also ensure that the property is free from any other liabilities.


1. Avoid investing in more than one property at a time solely because you could end up obtaining a surplus loan amount. Ensure that the loan amount taken can be easily paid every month.

2. Do not avail a confusing loan, instead read every detail of the loan contract and understand the terms and provisions. Also do not avail multi-option loans. Avoid borrowing a higher loan amount than required. Consider your financial situation and your future plans before seeking a loan.

3. Do not blindly invest in a property because of its interiors or any other attractive feature(s); instead see if it matches your requirements. Avoid either hastening the transaction or delaying it.

4. Avoid investing in a costly home assuming that it might give you a greater price appreciation in future. Also negotiate with the builder for various things before making the down payment.

5. Do not buy a property without doing a background check on the builder, his certificates and his past projects. However, do not fall prey to the promises made or attractive pricing schemes offered by the builder.

6. Avoid buying the property without knowing the prevailing rate of properties in the locality. Prepare yourself to negotiate if the rate given to you is higher than the prevailing rate.

7. Avoid compromising on the amenities as well as avoid opting for unnecessary amenities. Ask the builder about the number of amenities that will be offered. Note that more the facilities, more the maintenance

8. Do not issue a cheque to anyone unless you obtain the company’s application form filled with the unit number and the super built-up area.

9. Do not sugarcoat your bad credits and instead report your credit rating accurately along with other debts. A tarnished reputation can prevent you from owning your dream home.

10. Avoid buying a property without the help of a professional real estate agent. The agent might know things which you are not aware of.

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