5 things to remember while buying a resale property
People buy a resale property because it comes with several advantages like there is no project delay, and it is ready-to-move-in property as well as there is no service tax or VAT burden. However, when you are buying a resale property you should do only after necessary enquiries i.e. due diligence; for instance, you may check verifying title records and ensure that the property specifications conform to the claims.
Though there are various documents that are to be checked like the builder-buyer agreement and original payment receipts against the installments paid, etc. here are five documents that you must check before buying a resale property.
Five documents you must check
First thing first, you must ask for ‘Sale Deed’ as it’s the core legal documents that are proof of property sale and transfer of ownership between the seller and the buyer. Make sure that the Sale Deed is registered and when going for execution ensure that all the conditions between the seller and the buyer are complied with.
Second, you must check ‘Mother Deed’ or parent document as it’s the document that traces and is proof of the origin or antecedent ownership of the property from the beginning. Mother Deed consists of the change of ownership of the property via sale, gift, partition or inheritance, etc. and the buyer knows the earlier owners. If the original Mother Deed is missing, the buyer should obtain the certified copies from the registering authorities.
Third, when you are buying a resale property, you must obtain ‘Encumbrance Certificate’ or EC which denotes the charges in the ownership or liabilities created on a property that is held against a home loan as security. You can obtain EC submitting a copy of the Sale Deed and filling the Form 22 and affixing a non-judicial stamp to the jurisdictional sub-registrar’s office.
Fourth, you must obtain ‘Occupancy Certificate’ if it’s a constructed property which is given only after the authorities carry out an inspection on the property and works as a proof of fact that the project constructed by the builder has met all the given norms. Occupancy Certificate is also needed when you apply for a home loan.
Fifth, you should ask for ‘Possession Certificate’ which is mandatorily issued by the Builder or Developer to the first owner and confirms proper construction and allows the owners to take possession. Though it is issued only to the original buyer, it passes through the subsequent buyers from the original buyer.