Buyer’s Checklist When Closing on a House Deal
For most of us, buying a new home is a huge step and it definitely involves some serious capital investment. While a property purchase involves multiple technicalities and checkpoints that ensure a smooth transfer of ownership, here are some essential points to dwell upon for a practical approach when closing on a house deal.
- Go with a RERA Registered Project:
For a buyer intending to buy a property is advised to verify whether the project has been registered under RERA. RERA brings in better transparency and accountability while allowing buyers to make a well-informed purchase decision. For well-established developers, reputation is paramount and hence a project from a reputed real estate developer will always be registered under the RERA Act and never compromise on the quality aspect while ensuring all the property documents are in order. Apart from this, the project will also ensure fulfillment of all the legal requirements along with timely delivery of the promises being made. Hence, to ensure the quality and safety aspects along with a smooth transfer of property, always check whether your property is registered under the RERA Act.
- Verification of Ownership Papers and Title of the Seller:
An important principle, a seller can never transfer an enhanced title than what he owns himself. For a smooth transfer of property, a buyer has to undertake due diligence and ensure a clear marketable title, free from any encumbrance. The critical inspection of property documents checklist including the original sale deed, society papers, share certificates, approval plans of the building, society papers etc. ensures a clear title of the seller. Also, it’s important to check the registration of seller’s name with a local authorized regulatory body and ensure there are no dues pending on the property till the date of transfer.
- Estimate the Total Cost of Ownership:
Over and above the basic cost to buy a new property, there are certain additional costs incurred during a property purchase. To start with, a buyer has to pay separately for the allotted parking charges, society deposit, upfront society maintenance, transfer charges (in case of resale), stamp duty and registration charges, GST, legal charges and along with that a buyer also needs to consider the cost of furniture and furnishings to arrive at the total investment amount for a property purchase. All these charges could add up to 5-20% of the basic cost of the house.
- Check Your CIBIL Score:
If you’re considering to go for a financing option to purchase a house, it’s important to check your CIBIL Score before you close the deal. CIBIL Score is a widely used parameter among financial institutions and banks to check the credibility of a borrower and plays a crucial role for your home loan eligibility in addition to other factors. A high credit score reflects a sound credit history and a borrower can even leverage a good score to negotiate interest rates. Hence, always check your CIBIL score to ensure you have relevant funds prior to closing a purchase deal.
- Construction Approvals and Building Use Permission:
While purchasing an under-construction/constructed apartment, it’s important to scrutinize the building and layout plans along with the relevant approvals from the local municipal authorities. A construction approval ensures all the statutory and regulatory requirements have been met and the building will adequately provide infrastructure facilities including water, electricity, sewage, safety standards etc. Also once the construction is completed the government authorities are required to conduct an inspection to ensure the construction is in order and all the requirements and standards have been met for occupancy after which the local body will issue a building use permission. It is necessary to obtain a copy of all the necessary approvals from the seller to ensure safety and security standards.