A Check List Before Investing on Property

Bangalore: Nowadays People are facing hurdles more often while buying a house. Before buying a house there are so many things to be considered which the buyers should not miss out to avoid future problems. Below are some of the points which clarify further insights before buying a house.

Before buying a ready property:

A comprehensive legal due diligence is required while buying a ready-to-move-in house. While buying a ready property, check all the legal clearances, water and electricity charges as well as completion certificate and occupation certificate of the house. In addition to this, check all the detail information about the builders before buying a house such as builder’s reputation, past performances and their financial status.

Payment options:

Buying a house is a huge fiscal investment. Sometimes buyers put their entire savings to buy a house. There are different payment options for the buyers that developers offer such as:

Down-payment plans: Is the most traditional way of payment where the buyers pay 90 to 95 percent of the total amount in one or two months from the date of booking. Down-payment is where the buyers pay maximum amount by taking home loan and rest amount they pay at the time of possession.

Construction-linked plans: Under this plan, buyers pay 25 to 30 percent of the total amount in 90 days from the date of booking and the remaining balance has to be paid in installments with the construction progress.

Flexi-payment plans: This plan is the modified version of down-payment and construction-linked plans where the buyers need to pay 10 percent of the total amount at the booking time and another 10 percent within 2 months from the date of booking.

Freehold:

To be at safer side, buyers should always buy a property from a seller who has freehold right to avoid future problems. Freehold right is when the owner will have the absolute ownership of the property, be it in land and the buildings on it.

Power of Attorney:

Power of Attorney (POA) is a legal contract wherein the person has the power to sell, rent, mortgage, put up on lease and maintain the property. However, the person who holds the power of attorney does not get the sole ownership rights.

Sale Deed:

Sale deed is an important legal document which is needed while transferring the property rights from seller to buyers to acquire absolute ownership.

Title Deed:

Title deed is another important document where all the details of ownership, obligations, mortgages and the rights are included for the property. Moreover, banks refuse to give property loan if found any mistakes in this document.

Encumbrance Certificate:

This document is important for property transactions and the purpose of this document is to give a property on lease to get loans.

Further than the catalog:

While buying a house, the main area of focus for the investors are the price, area of square feet, number of rooms, facilities and location. But, there are other things as well to look at before buying a house such as legal clearance of the project and finances of the builder, which is equally important that extends beyond the catalogue.