“2020, Check before you buy, A Generic property purchase checklist handy with few of the important points detailing things to know before planning to buy a new / resale home or some property. All listed points are important and should be considered in your property purchase decision, May be a 2 BHK flat in Mumbai or any other in resale deal.
Checklist helps on things like reputation and credibility of builder (developer company), What to ask a builder, Some important basics, Things otherwise we generally forget about location, security, feasibility and more. A help for all home buyers in Mumbai city and Suburban areas..”
Basic Points and Purchase Checklist 2020
- Scrutiny is less a problem now as RERA rules are strict and unauthorized constructions are hardly found after RERA came into existence. Get the RERA number and other details to check more details of that property on RERA website.
- Check for rate of property currently going on in that location by asking few people/agents etc so that you will not land up putting up more money in the deal.
- Check if the home you purchasing has well maintained society registered properly so that most of the legal matters are taken care and you are at lower risk of being cheated.
- Check both Original documents and also previous sales Chain of documents (if any) before giving token money for the deal.
- Check if that property can get Loan from banks, if not why ?. If yes, if any current loans exist & is cleared or not.
- If property is very old (Example: 10 to 12 years) you can benefit and save money during paying stamp duty payment to be given. So pull out assessment letter for Municipal Corporation for same.
- Check if the space area for Carpet, built up OR super built up.
- Check if it CIDCO approved, or alternately if property is old then proper CC, Plan Copy and saat bara utara (7-12 utara) documents there with seller.
- Check if all previous dues has been paid like (electric bill, yearly municipal charges for property, society charges) etc.
- Ask your advocate to calculate required Stamp Duty and Registration Fees with advocate fees and be ready.
- Property clearance note and no Objection certificate (NOC) from society is must before you register any property.
- Do not try saving Stamp Duty charges as during litigation in most cases you cannot fight legally with it.
It is always a good idea to meet the society secretary of the property (flat) you purchasing. This will help you know some legal society pending, share certificate related, maintenance related and NOC related to the seller.
- Check the important documents before you give the token amount for purchasing that property, some of the documents are Society NOC, Name of electricity bill and Property tax receipt ( Known as ‘Gharpatti’ in Hindi), Name of the maintenance receipt, All the previous sequence of purchase/sell of that property agreement, Full plan copy (floor plan) of that building and the wing you planning the purchase, Check if the legal government stamps are seen clearly on same.
- Most important : Spend on the 100 rupees stamp paper and get the signature, left thumb print with photo attached on the seller before giving the token amount and make the terms very clear on registration date and what if for some reasons the deals gets cancelled.
- Check if the property was already mortgaged before and if the things are already cleared and settled with the final note of settlement. One best way is to check for all the sequence of original documents of the flat you purchasing.
- If you are the first time buyer of say this is your first property to be purchased, keep some extra cash handy as you might need it to miscellaneous expenses like post registration, society charges to be paid extra to builder and some renovations etc.
- Don’t rush for a property deal, Neither wait too long. If you find a deal interesting yet in low cost, find the valid reasons behind same. Common reasons are family dispute, urgent need of money for which the owner of flat sells at low cost, Or some litigation’s ?.
- If you find the deal proper and have checked every aspects, Next is to do all money transactions in written on 100 or 500 rupees government stamp papers. Add a photo of seller, with signature and left thumb print across photo with all terms conditions with DATE written.
- Hey how about a short video of your conversation ? Seems going far off ha ? Yet this can be real handy proof in case of any problems in money transactions of that property. Signature can be invalid, But a photo with left thumb impression or a video cannot be faked.
- Properties with commercial operations in ground floor and above is very common. Builders cash on commercial shops in much better ways compare to residential above. Few things to keep note when you are dealing on buildings with residential homes above and commercial operations in ground, basement and sometimes first and second floors. Confirm if the entrance is NOT common to avoid nuisance, Check on parking space if it is separate, what about the Air-Conditioner outdoor units, are they blowing that hot air inside residential premise ? Also check on where is huge power backup units located if any.
- If people already staying, Just go in and talk to them, ask for issues related to plumbing, colour work, quality of things and construction material used inside home. If allowed, don’t hesitate to walk into someone’s home because the on site manager will just take you around and show your the sample flat which is always the best made. Going further one can cross check the as shown things like powder coating windows, window curtains, kitchen trolley, door wood etc of sample flat with the one that someone already got possession and staying.
Things to Know and Ask Builder
Checking on builders (Developer Company) reputation and credibility is one of the most important thing prior giving booking amount. Below are check list and queries to ask builder and be sure prior any payment of booking your dream home. Don’t know what to ask ? Start here..
- Do a proper background and reputation check of the builder. The very information to start with is to ask him if the construction company is having membership of BAI (Builder Association of India) OR CREDAI (Confederation of Real Estate Developers Association of India). If yes the reputation is proved, yet if not it just doesn’t mean that the builder is not reliable. Few builders opt not to be the part of association, Yet you need to check on further point and confirm.
- Check if the developer company name has ISO 9000+ certification, This will help you keep check on the quality of work and the construction material used and their credibility.
- Reputed banks have category listing of developers to make home loan procedure non-tedious. Check if the developer company has listing on list of private banks like HDFC, ICICI and others like SBI etc.
- Ask if builder has Title clear papers for property on which flats are built. Easy way is to ask for IOD (Intimation Of Disapproval) and CC (Commencement Certificate) which makes it clear that the property you are purchasing is built on undisputed land and is BMC approved.
- Ask if he is ready to give Completion Certificate which is required during registration and stamp duty process and also during resale in some cases. This Certificate if and important proof of BMC clearance on building permissions.
- Adding to above point, check if the property has OC (Occupancy Certificate) with builder, If not what are the reasons. Common reasons being the FSI of that property used in some other constructions. Property without OC faces bank loan problem for common man. Remember, banks cannot disburse loan till they get the OC submitted. Without OC, BMC / Municipal corporation do not give water supply and builder alternately gives TANKER WATER. This point is major ignored by buyer.
- Ask if any well known banks are tied up with builder, If banks and financial institutes like HDFC, ICICI BANK, GIC etc are already tied up with builder it is a good sign of saving yourself from non well known and fraud builders.
- Always take the first step by asking for sample flat and building plan, This will give you the look and feel of flat and the amenities and quality of tiles and other items used in kitchen and bathroom etc. Also ask and see the floor plan that gives the idea about surrounding and spacing.
- Ask for, if any additional charges above the charges they show to you like any legal fees, parking fees etc which sometimes is not said in first meetings.
- Ask when is the project getting completed and which month is the handover of property ? How will they Charge till then because this will attract PRE-EMI (A kind of interest charged for part payment of the loan borrowed from bank) this is an extra charge and not same as EMI. Get dates in written and terms if builder not able to give on time.
- Ask the builder about the Carpet area and Total super built up area and what will be written in Agreement. Also check the height and directions of the flat.
- Ask what all utilities and facilities are in built provided upon sale like Fans, Furniture in kitchen, Home UPS/Inverter etc.
- At many far suburb locations of Mumbai like Nalasopara & Virar, some / many properties don’t have OC and instead get something called ‘Collector Passing’ certificate. This kind of properties are not entertained by leading banks, yet some small co-operative banks do sanction loans. Still, it is a risky real estate deal.
Note : If you find this list helpful and handy, Kindly add a comment below with any further points that can help others save hard earned money, helping in any other way or stop before going for a wrong property deal.
See Also : Property Locations.