Owning a home is a cherished dream for most of us. However, this dream does not come as easy as it sounds. During this process are a whole lot of paper work, legal affairs and financial transactions. Owning a home can actually be an expensive affair. It is indeed a huge investment for most of us. Listed below are important points to consider and follow while purchasing your new home.
One has to go through lot of paper work and legal formalities before deciding on buying a home. Mostly, the property documents contain a lot of legal jargons that are difficult to understand for a common person.
One of the first documents to verify against the property is the title deed. This is indeed the most important document against all other documents. This document helps to acknowledge that the property is clear and is on sale.
It is actually prepared by the seller for his property which could be an individual house, flat etc. The buyer should take efforts to run a clean check of the title deed. This document is required by financial institution if you apply for a home loan.
There are many scenarios that arise in the real estate business. Suppose, if the property you are willing to buy is under construction, then you have to request the builder for a letter of allotment otherwise a development agreement.
This document details information such as the price, construction timeline, house framework and completion date. It also states the liability of the builder if he fails to construct the house on time. Upon the payment of deposits, the builder hands over this document to the buyer.
In the event if you are set to buy a readymade property like a flat then you need to make sure that the seller has the title deed, absolute rights and right to transfer property to your name. Moreover, verify if the building has followed BMC, tax and other rules. All legal documents should be original and has to be acquired from the builder.
You might have to spare some expense for stamp duty and verify the sale deed document with the help you an attorney. Stamp duty costs are generally a small percentage of the value of the house. Once the stamp duty is collected, the name of the buyer can be registered against the property.