You didn’t plan, but you did fall in love with a pre-owned house in a much-coveted locality? Buying a resale property can be a smart move, however, before you make the big purchase, be aware of all the pros and cons involved in purchasing it. It is absolutely necessary that you rule out any discrepancies that could give rise to legal issues in the future.
Benefits of buying a resale property
Easy on your pocket and time: You can save both effort and time by choosing to buy a resale property, as you are likely to find most amenities in place at the time of possession. With resale properties, chances are that you might be able to acquire a property at a discounted price, or come across an eager seller willing to negotiate.
Good Investment Option: A resale property in a prime location is a great investment option as there will be a constant demand for such properties. Since prime localities are saturated and there are no fresh projects, resale properties have a great potential for resale. You can avail a home loan for properties not older than 20-25 years. If you have disposable cash from a recent property sale, investing in an older property is a great option.
What to Look Out for When Buying Resale Property
Never let a prime location or an unbelievable bargain take away your attention from the essential measures required to safeguard yourself from fraudulent sellers. With a little caution, you can buy a great resale property at an amazing price. Here are a few cautionary tips to be followed when buying resale property.
Look for Physical Damage: While it is a norm to renovate and paint a house before selling it, do not let the beauty make you blind to any physical damages in the building structure. It is a good idea to hire an architect to examine the property and rule out any problem areas. When you identify a damage, do not let go of the house immediately. Instead, calculate the amount you’d have to spend to fix the issue and try to adjust it in the final price you’d be paying for the property. If the expense is too big, then it might be practical to strike the property off your list.
Check Documents Thoroughly: Look beyond the title deed of the property and ask the seller for the mother deed – a document that covers all the transfers the house has undergone. In order to root out any legal hassles, you could hire a lawyer specializing in real estate to put a search report together. This is a necessary caution while investing in a resale property as it safeguards your ownership. Also, insist on examining the original conveyance deed as it gives you an assurance that the seller is indeed the owner of the property.
Besides checking the conveyance deed, also make sure that all outstanding dues and taxes have been paid.
Caution Against Legal Hassles
It is recommended that you seek the help of district court records to find out if the property has been involved in any litigation.
When buying an apartment, all you need is a no objection certificate from the society. However, if you are buying an independent house, watch out for duplicate sale deeds.