A resale property is a used property that the new buyer can buy from the existing buyer. The resale property is being sold at the existing & prevailing market rates at which the property can be sold. The property should have documents with clear titles. And in case of the joint ownership, the buyer should authenticate both or all the owners of the property. The loans can be taken from any of the lenders according to the choice of the borrower. For the resale properties, the loans can be taken at similar interest rates as the new construction ones. The lender first verifies the documents of the property and accordingly only approves the loan for the borrower. The bank charges interest rates of 6-9% per annum. The interest rates on home loans are on a continuous decline due to the falling Repo rate of the RBI. The government wants to encourage the people to avail home loans for the purchase of the house. And thus the government also provides tax rebates on home loans. The home loans are exempted with the income tax rebate under income tax act 80C and section 24. Thus on the interest rates, the loan installments are exempted under section 80C, and under section 24 for the interest repayment.
The verification of the ownership along with the verification of the documents is necessary to avoid any legal complications in near future. There should not any legal dispute is going on against the property. The buyer should check with the property documents thoroughly and accordingly should proceed ahead with the transactions. The buyer can check with the records from the registrar’s office for the property owner. In case of the death of the owner of the property, the future generation people are the ones who acquire the property who are the new owners of the property. The bank also charges processing fees while approving the loans of the borrower. The bank incurs some costs in the verification of the documents through a third party and also for the part of the recovery process of the loans. The interest rates being charged by various banks should be verified by the applicant before proceeding ahead with the loans process. Also, the property should not be in a dilapidated stage during the purchase as in that case the bank may reject the loans. The structure of the building should be fit for the stay during the purchase only in that case the loans can be approved by the bank.
Guidelines to authenticate the resale property
Verification of property documents:
The buyer of the property should thoroughly authenticate the property documents before proceeding ahead with the purchase of the property. There should not be any disputes amongst the property with the owners or the co-owners. In case of transactions with the property which is disputed ones can lead to legal disputes with the buyer. Thus the proper verification is necessary during the purchase of the property.
Loan approval of the property:
The loan approval can be done by the bank or an NBFC only in case if the documents are available with clear titles. Also, the condition of the building should be in proper condition to avoid the rejection of the loans. A dilapidated building is a risky structure that may get collapsed at any stage.
Ownership share of the other owners:
The property owner should verify that there should not be multiple ownership in case of the property and in case of the multi ownership all the co-owners should be present during the transaction.
Pending arrears of the house:
The arrears of the pending bills like society maintenance, water bill, society maintenance & water bill before the purchase of the flat. Sometimes the arrears of the house may cost thousands or lakhs of rupees so thus the borrower should be cautious in case of buying property.
Verify the condition of the house:
The buyer of the property should verify the condition of the property. The property should be in good condition and all the electrical fittings and also bathroom fittings should be verified & also waterproofing should be proper. Sometimes some major repair works may cost major costs to the buyer. So thus the buyer should be cautious about all such repairs works.
No loans should be pending in case of the sale of the property:
The loans being taken on the property should be cleared in case of the sale of the property. So thus the borrower should ensure that no loans should be pending on the property.
We can conclude that all the above points should be verified by the buyer before proceeding ahead with the purchase of the property. The above points being mentioned should be considered to avoid getting cheated by the seller.