Guidelines to register resale flats

Old or new the one thing that is common for all real estate projects- be it flats or villas is registration. Unless you register your flat or property properly, you are not the legal owner of the property even after sharing the payment with the seller or builder.

Registration for flats or property requires a visit to the local registrar’s office and payment of the requisite fee for registration along with stamp duty charges. If you have taken a home loan for your property purchase, know that your loan will not cover the expenses towards registration. You will need to pay for the registration from your own pocket.

There may be plenty of flats available for resale but when you are buying resale property the first thing to check in the registration process. For example there are plenty of flats available for resale in Velachery in Chennai but not all flats have a clean background due to various reasons.

If you are buying any resale flat the first thing that you need to check the legal validity of papers of the property. You can make use of a legal attorney who will conduct a background check for the legality of the papers. Also ensure that the property is in the name of the seller and that there is no dispute or mortgage on the flat. If you happen to see any encumbrances, ask for release letter / NOC.

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If all the property documents are clean ensure you know the charges towards registration for the property. Usually the stamp duty charges range from 2 to 6% of the property cost. The registration charges of 1% are charged by the office of the local registrar. You will need the KYC documents for the buyer and seller and ensure you visit the office of registrar in person. You can also take an online appointment to ensure your registration process is facilitated without much waiting period. There are many legal agencies offering services online, says experts at Sulekha Properties.

There is several real estate scams happening in our country, which means property buyers have to be very vigilant before taking any steps. One should consider taking advice from an expert lawyer and go for approved projects of banks to possible extends. Checking legal documents means covering documents of last 15 years and updated Encumbrance Certificate.

 

IS it worthwhile to buy resale flats?

There is always this dilemma among people: if it is worth it to buy a flat that has recently been put on resale. The HSI Index that has been published for 2016 shows a sharp decline in consumer sentiment for resale flats. This means people are looking more than ever towards new properties and are ignoring those that have been already established making it difficult for most flat owners to sell of their flats says property.sulekha.com. There are many options for those searching for resale flats with all amenities in Bangalore

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However, resale flats might just be a viable option for new home buyers. Instead of waiting for long periods of time waiting for the real estate prices to come down or taking for granted the sugar coated glib words of the builders, a financially sound and confident person always searches for options that offer a viable, cheap and competent solution. Although a resale flat may not have the glamour and freshness of a new one, it can be obtained at a discount of no less than 10% of the rate of a new building. Plus, there are many advantages that the water and seepage systems have been tested which make the flats easy to manage because unforeseen problems do not arise suddenly. However, is the comparison of the cost the only criteria to make this decision to buy or invest in a resale flat?

However, you must be aware of the main issues that resale flats face over time. For salaried individuals however, resale flats are sometimes the best options available at a cheap and affordable price.

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  • The flats have been handed from person to person and hence, buying a resale flat sometimes means that you have to pay about 20% down payment at least, which may be in hard cash only, something that is not asked of by the builders who are happy with small payments initially.
  • There are extra expenses involved like the compulsory registration fees, additional stamp charges, property transfer fees, other utility transfer fees and realty agent fees among other such add ons.
  • It is important that you check if the previous owner has cleared all dues before handing over the flat to you so that you don’t have to pay additional charges.
  • Society membership also has to be paid, along with parking and other amenity charges which have to be finalised before buying.