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Important documents to check before buying a resale flat

Purchasing a resale flat is a successful investment from the buyer’s standpoint. What could be a better deal than owning a flat at a price lower than the market rate? Furthermore, when you buy a resale property, you save the money that you would have spent on home rent. Instead, you can use the money to pay the EMIs on the home loan you took to acquire the resale property. You can also take ownership of the flat immediately after purchasing it, rather than waiting months or years.

However, because a resale flat has passed through numerous hands in the past, the process of purchasing it involves various complex legal processes and technological consequences. As a result, before making the final decision to purchase a resale flat, you should check and verify all the property papers and legal documents involved in the purchase to ensure that the flat has all the required government approvals and that the seller has the right to sell it.

Important documents to check before buying a resale flat:

Title report – Preferably, you should conduct a title search at the registrar’s office to obtain the papers indicating the flat’s history. Once completed, you will be given a written analysis of the flat in the form of the title report. It will include its description as well as other information such as its tax rate, title holder’s name, joint encumbrances, and details of property tax, liens, and mortgages.

NOC from the bank – It is essential to determine whether the flat is mortgaged against a home loan. Check the debt status of any loans on the flat. To guarantee that any pending dues have been paid back to the bank, request that the seller get a no dues certificate from the relevant bank. This document guarantees that the bank has received all outstanding debts from the seller and that there are no outstanding debts associated with the flat, allowing you to purchase it with confidence.

Building approval certificate – An illegal building might cause problems later. As a precaution, you should confirm whether the flat was erected following a construction plan approved by the local municipal authorities. This plan will include the flat’s floorplan, layout, utilities, and other details. If any additional illegal work has been carried out, the flat may be destroyed or ruled unsuitable for habitation in the long term.

Encumbrance certificate – Check the encumbrance certificate, which guarantees that the property has no dues, that the title is clear and marketable, and that it has not been partially sold to another person. It will also notify you of any legal concerns related to the property or any other complaints. The certificate is mandatory for the home buyer to be eligible to obtain a home loan from a reputed financial institution and avail of affordable home loan interest rates.

Utility bills – Examining utility bills such as water bills, electric bills, gas bills, and so on is a crucial component of property verification. It will notify you whether all bills have been paid on time or if there are any outstanding invoices. You should also ensure that the invoices generated by the vendor against the flat are in the name of the owner.

Conclusion

All these documents are essential components of the chain of documentation required when purchasing a resale flat. When applying for a resale home loan, you must additionally provide these documents to the bank. In case any of these documents are missing, or the seller is unable to provide them, it is recommended that you do not purchase the flat because it may land you in trouble in the future when selling the property or applying for electricity, water, or other services from the respective authorities.

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