Legal Guide for Buying a Resale Property
September 10, 2020|Posted in: real estate
When you are about to buy a flat in Kerala of your own, that too in Kochi, buying a resale property seems to be a good option! You don’t have to go through the tedious process of construction. As you can move into ready-to-shift flats for sale in Kochi you can also save a considerable amount of money on rent and use it for payment of your home loan EMI.
On buying a resale apartment, you can enjoy tax benefits right from the first EMI on immediate possession of the property. But buying a resale property has certain challenges that many a buyer initially is not aware of like higher cash requirements like compulsory expenses including registration fees, transfer fees, stamp charges, and other charges apart from the cost of the flat.
Check out this Legal guide for buying a resale property:
Obtain Original Property Documents
Verify original property documents carefully before signing the sale agreement. Seek the help of a lawyer to examine all the relevant documents of the flat for sale including:
Agreement to Sell (ATS)
The ATS document lists the terms and conditions of sale of property between the buyer and the seller. It declares the agreement value of the property. In fact, the Sale Deed is drafted based on the ATS.
Title or Sale Deed
The document which signifies the sale and transfer of ownership of property from seller to the buyer is called the Title deed. It is necessary to submit this document, for getting home loans. The property document establishes the primary proof of ownership for sale in future.
NOC from society/ authority
The No Objection Certificate (NOC) is mostly required in deals related to Co-operative Housing Societies (CHS). It certifies that the society has no objection to transfer the share certificate in favor of prospective property buyers. Any sale or transfer of property without NOC may create problems in future.
Occupancy Certificate (OC)
The occupancy certificate authenticates that the flat has complied with the plans approved by authorities. It indicates that the property is legally constructed and is fit to be occupied. The OC can be obtained after presenting documents like the commencement certificate, completion certificate, sanction plan, tax receipts, NOCs from concerned authorities (like fire, forest, pollution etc.), photographs of property, and area calculation sheet.
Encumbrance Certificate (EC)
The encumbrance certificate (EC) certifies that there are no dues on the property and that the title is marketable and clear. It reflects all the transactions related to the property.
Other documents needed:
- Release certificate if the property is pledged to get any bank loan
- Approval plan
- Previous electricity/ water and other utility bill payment
- Property tax payment
- Verify the land use zone according to the city master plan. You can avail the plan from your city’s local body office